Negligent Property Management Company lead to eviction and non-payment of rent

[davisambrose]

Our property management company found a tenant whose credit was declined by the Tenant Screening Service. Results from the Tenant Screening services stated, "The household is declined" for several issues. He had three outstanding collections that were recorded by the credit report for several years for amounts of $400, $6328 and $484. His wife's identify was not verifiable.

I was unaware of this situation as the property management company did not disclose this information to me and allowed this tenant as he was recommended by the property management company. He did have some delayed payments but started defaulting on his third year, his check bounced, made wrong promises and was evicted which took 4 months. I lost 5 months of rent $10,500, had to pay eviction charges of $900, and the tenant has done a lot of damages to the house, built concrete structures in the backyard, filled the house and outside with construction materials, had 4 dogs inside the house no pets allowed, grew marijuana, painted the inside with multicolor paints, ripped carpets, bro ke the s tove, cut open the steel external door from kitchen for dog entry and many more. This has cost me more than $8000 for which I have receipts. I am asked to send the tenant for collections for the money he owes but I feel I need to sue the property management company for negligence.
Please advice.

 

[Just Blue]

Our property management company found a tenant whose credit was declined by the Tenant Screening Service. Results from the Tenant Screening services stated, "The household is declined" for several issues. He had three outstanding collections that were recorded by the credit report for several years for amounts of $400, $6328 and $484. His wife's identify was not verifiable.

I was unaware of this situation as the property management company did not disclose this information to me and allowed this tenant as he was recommended by the property management company. He did have some delayed payments but started defaulting on his third year, his check bounced, made wrong promises and was evicted which took 4 months. I lost 5 months of rent $10,500, had to pay eviction charges of $900, and the tenant has done a lot of damages to the house, built concrete structures in the backyard, filled the house and outside with construction materials, had 4 dogs inside the house no pets allowed, grew marijuana, painted the inside with multicolor paints, ripped carpets, bro ke the s tove, cut open the steel external door from kitchen for dog entry and many more. This has cost me more than $8000 for which I have receipts. I am asked to send the tenant for collections for the money he owes but I feel I need to sue the property management company for negligence.
Please advice.

What state?

 

[davisambrose]

California.

 

[FarmerJ]

Suing is no promise that you will ll ever get the money back BUT every time the tenant seeks a rental where they did screen for court histories it will come up and of course you could learn what you can about renewing the judgment to keep it going longer. As to the property management firm I would say talk to a lawyer about suing them since they could have addressed some of the problems / damages you mentioned and if they had notified you of those problems with the tenant that mess might not have been as bad. Its obvious that the property management company didn't even bother to go and take a look at the outsides of it once in a while.

 

[adjusterjack]

I feel I need to sue the property management company for negligence.

Then hire yourself a lawyer. You can bet the property manager's professional liability insurance company is going to have a lawyer to defend him.

 

[davisambrose]

Thanks for the reply I really appreciate it. I am in a state where sending the amount for collections for the tenant will not yield any result as he is already failed oblige earlier 3 collections against him.

As far as getting back the money from the property management it's not guaranteed and hence just for information how much would I incur as lawyer fees and charges like that if I have to file a case against a property management company.

 

[adjusterjack]

As far as getting back the money from the property management it's not guaranteed and hence just for information how much would I incur as lawyer fees and charges like that if I have to file a case against a property management company.

If you wanted to settle for the $10,000 small claims limit you can do that without a lawyer but you'll still be going up against the pmc's insurance lawyer.

If you want to hire a lawyer, call around to get rates and retainer amounts. My guess is $200 to $400 per hour with a retainer of $1500 or higher. For a $20,000 case you may have to spend $5000 on a lawyer.

 

[davisambrose]

Thanks for the pointers. If I go through small claims do you think I have some valid points for argument? How much will the Lawyers charge as payment for consultation to see if this case has a better chance of winning? Thanks.

 

[LdiJ]

Thanks for the pointers. If I go through small claims do you think I have some valid points for argument? How much will the Lawyers charge as payment for consultation to see if this case has a better chance of winning? Thanks.

You also have to keep in mind the size of the property management company. If they are a small operation a 20k case could bankrupt them...and if they file bankruptcy, you may not collect much, if anything, even if you win. If they are a larger operation or even a big operation your odds of collecting after a win are much stronger.

 

[justalayman]

I think the issue about the old collections issues are irrelevent. Not only were two out of the three quite minimal, the tenant paid well but for the occasional late payment for two years. Unless you had a very long term lease there were likely at least two times which you could have simply not renewed the lease. The fact the lease was continued suggests his payment history was not of serious concern.

Regarding the possible liability of the property management company;

A lot is going to depend on what your contract is with them. Are they specifically responsible for ensuring the terms of the lease are being followed? Do they have an obligation to make inspections of the premises?

Are you totally hands off regarding the property?

Do you still employ the management company?

 

[davisambrose]

I think the issue about the old collections issues are irrelevent. Not only were two out of the three quite minimal, the tenant paid well but for the occasional late payment for two years. Unless you had a very long term lease there were likely at least two times which you could have simply not renewed the lease. The fact the lease was continued suggests his payment history was not of serious concern.

Regarding the possible liability of the property management company;

A lot is going to depend on what your contract is with them. Are they specifically responsible for ensuring the terms of the lease are being followed? Do they have an obligation to make inspections of the premises?

Are you totally hands off regarding the property?

Do you still employ the management company?

The property management company was asking extra for maintenance inspection of the property so I didn't sign for that. All they said they're going to do on the inspection is maintenance check and let me know if there's anything that needs to be fixed. I did not take it because if that's a problem the tenant is automatically going to open a ticket.

I am totally hands-off of the property as even if I have to check I need to get the permission from the property manager.

I am signing but a different property manager after all this is just happened. It took more than a month to clean up the mess.

The property management company says to collect the outstanding rent I need to send them for collections. How can I expect the tenant to pay the collections because he didn't care about even paying for the old collections which amount to $7,000. Am are you not supposed to know that this person had unresolved collections to help me make a final decision? is he not obligated to reveal this information to me before putting him on my property? Does it not make a good case for argument?

Thanks.

 

[Zigner]

What does your contract say is your remedy for disputes, etc?

 

[justalayman]

As I said, the issue about the old debts is likely meaningless. The tenant paid for over two years even if he was late occasionally.


I suspect whether you have any recourse against the management company is going to be based on the contract you have with them. If they were negligent in their obligations in thst contract and it cost you money, you have a reasonable chance of winning a suit against them

As to the tenant: if you aren’t willing to sue him, you’ll never get a penny from him. Even if you have a judgment against him, you may still not receive any payment but the judgment on his credit report will have a greater negative affect than simply making collection efforts .

 

[davisambrose]

Thanks, Justalayman.

Zigner, I'll convert the contract to word as I am not able to copy the contents. I'll post it soon.

 

[Zigner]

Thanks, Justalayman.

Zigner, I'll convert the contract to word as I am not able to copy the contents. I'll post it soon.

No, don't bother. Contract review is beyond the scope of this (or any) internet forum. Please take your contract to a local attorney for review.