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Implied contract? Messy situation. (long)

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stillmoody

Junior Member
What is the name of your state? Arizona

My husband and I are apartment managers. We had worked for a management company who was not the most ethical company out there (unbeknownst to us) and the owners of our particular property did not receive any income for about 1 year. During the latter part of that time tenants were without water for more than 3 months, the place became infested with ****roaches, the pool was shut down by the county (twice) and the garbage was uncollected due to a 6month delinquent bill and allowed to pile up in the rear of the parking lot - again drawing the county's attention. We were contacted by the broker for the property (as a representative for the owners) and asked to manage the entire property working directly for the owners. We agreed after hashing out some terms with the broker at a local Starbucks. We had been living off sight for about 3 months (rec'd promotion to new prop) and during that time had continued to manage one owners buildings (6 four plexes with 4 owners - each has own buildings and are all separate entities) as he had fired the mgmt co when they failed to report sewage backing up into tenants home (up drains in tubs, sinks, etc) and tied our hand in fixing it for several weeks. This owner told the broker how well we did and suggested our managing everything. The place was a wreck - I had a $1500 garbage bill just for starters and the county was right there ready to levy fines for a 'green pool' due to West Nile in AZ. I was told by the broker to go ahead and use rental incomes to take care of what needed done and pushed daily to complete other projects by him. Some owners had no tenants which equals no income. We presented a management agreement several times, to be signed by the owners, to which the broker scoffed - litterally yelling at us "Why do you need a management agreement?" When I sent it to the owners directly, he would call them and tell them not to sign anything until he had a chance to look it over as he was their "friend" and "eyes and ears in their absence" ( they all live out of state). Now mind you, this property has been bought and sold 3 times in 3 years and each time he was the broker. He was the one who suggested the management company who let the place go to **it and didn't pay bills, although they billed the owners, and never deposited any money for the owners. Some friend. It is my theory he does not want the owners to know how involved he was with this particular mgmt co and lose his license over some of the issues which were honestly criminal and should have been prosecuted. There are currently suits being filed against the mgmt co. by 2 of the owners due in part to information I shared with them. The broker was adament about not pursuing charges or suits and when found out I had agreed with an owner who suggested doing just that, he showed up at my house (we live onsight as was requested) at 8am the next morning in a fury telling me not to "rock the boat".
Anyway, we got the place cleaned up - 200% more presentable - and almost filled up with tenants again. My husband had the pool reopened and cleared by county within 2 week of our arrival, and trash was again being picked upp on a regular basis and not covering 1/2 the parking lot, we have a grip on the roaches as well and no longer fear they will carry a small child away in the night. (lol)
We were surprised by the broker last week when he arrived at our house with his partner and another fellow. We were given a 14 day notice to vacate. The other gentleman was apparently a broker as well and they said, the new management company. When asked specifically if the owners had agreed to this he reponded with a resounding "yes". My husband became rather infuriated and told them in unquestionable terms to leave. I emailed the owners, letting them know I was disappointed with the news and had been under the impression they were quite happy with us. I received immediate replies via email & ohone from furious owners stating they never authorized such actions and that when the broker had mentioned it to them previously they had stated that under no circumstances was he to take any steps towards replacing us. They were happy with our work and with the fact that we are at their disposal 24/7, they know what is going on with their investments for the first time since purchase. The broker was told that his looking after the property over the past year had gotten them only deeper in debt. A few days later, the management company was onsight asking for files and posting notices to tenant stating not to pay us rent. I informed them they were doing so without the owners approval and the broker had no authority to hire them. I began dialing to get an owner on the phone and they quickly left.
Now, one owner has decide to go with the mgmt co - this is the one we've worked for the longest who just happens to owe us about $2500 for work we've done over the past 6 months for him. He is claiming absurd things such as I never paid a trash bill (then why is it gone & being collected?) and that he has rent missing. In my opinion, he is worried that with me handling the money, I may pay the bill he owes us prior to giving him the remaining rents. I wouldn't do that, it seems unethical somehow, and besides, I've been collecting his rents for more than 6 months and have yet to do so. Anyway, he is attempting to hold the notice we received to vacate valid when he did not sign the new agreement until several days later and when contacted that day, claimed he had no knowledge of us being fired. We live in his building. The other owners have fired the broker.

My questions are a) do we have any kind of implied contract/agreement? b) have we done anything wrong by paying the bills etc prior to depositing into owners account as is standard practice & is in every standard mgmt agreement? We did have brokers okay although he denies it now. c) can we use the rents collected thus far this month against the balance owing (not previous balance accrued) for regular management and maintenance September ? d) can they force us out of here without a court ordered eviction? e) can something be done about the snake in the grass broker?
 



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