Release of rental income from previous property mgmt company

[RealReal88]

What is the name of your state? Ohio
Please advise the process for release of rental income collected by the previous property mgmt company in Ohio, since December 2018.
We received the sheriff deed on the property recorded in our name as of December 2018 but the previous property management company has been collecting the rents from the tenant upto July 2019 and have refused to cooperate and respond to our requests to release the rental income collected by them. Thanks for your help and advice.

 

[PayrollHRGuy]

How much are we talking about and are they giving a reason why they won't release the funds?

This will likely require you to sue them.

 

[RealReal88]

About $4,500.. They claim that they were not informed about the transfer of the ownership.

 

[LdiJ]

About $4,500.. They claim that they were not informed about the transfer of the ownership.

Did they give the money to the previous owner? For that amount of money, you might want to consider having an attorney write a demand letter and provide them proof of your ownership. You should also notify the tenants to stop paying rent to the management company.

 

[PayrollHRGuy]

About $4,500.. They claim that they were not informed about the transfer of the ownership.

Now I assume you have shown them the deed that names you as the owner. How do they respond after being shown the deed and now knowing you are the owner?

You can sue them in small claims court if they actually have the funds. If they weren't notified of a change in ownership or they were notified late they will likely not be responsible for rents collected prior to proper notification if they turned the funds over to the person they had no reason to believe wasn't still the owner.

 

[FarmerJ]

Was this a foreclosure property ?

 

[bcr229]

When did you inform the property management company and lessee that you were the new owner of the property?