Legal Question in Real Estate Law in Arizona
I have a dispute with a Phoenix property management company.
In 9 mo. of management we received $0 income, and it was rented out only 1 mo. at free rent, and they kept $299 fee charged to tenant.
Since Oct. 2013 to terminating contract in Mar 2014 each follow-up on leasing status were met with "we are marketing it, but it's slow time and area is bad." No other concerns were raised.
After switching management we discovered the unit had many deferred maintenance issues that turned away tenants. I found many condition were from beginning of contract, causing little interest from quality tenants. The new management took care of them and rented out the unit quickly after.
Prior management then demanded payment for charges made in 9 mo. totaling over $3000. When I brought up the issue of disrepair they claimed because I owed money they were not obligated to do anything.
There were no invoices, only charges listed on monthly reports. I didn�t pay because I thought they were not performing as outlined in the contract. Many charges were inflated or bogus. I wanted to wait until they find a good tenant before negotiating on the bills.
I even asked about the condition of the property and what can possibly be causing the prolonged inactivity. Their reply didn�t mention repairs needed, nor having to catch up on payment.
They never notified me of condition, cost, demanded fund for repair, paying balance, or notice to terminate contract. They went on as if everything was ok.
I am not looking to recover lost rent of over $5,000. But do they still have a claim to the fees? They are threatening collection and legal action.
1 Answer from Attorneys
The answer depends upon the contract you signed with the management company. You are saying that they defaulted in the performance of their duties as property managers and did not market the property properly. I recommend that you file suit against them in the appropriate court, small claims, municipal court or justice court for breach of contract, negligence and misleading you on the status of the condition of the property and the market. It is better for you to take action, rather than waiting for them to sue you.
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