Legal Question in Real Estate Law in California
We have been using a property management company to manage a house we have in southern California. The tenant pays his rent on time but for the past year, the property management company has been late paying us and we have had to call to receive our money. Since January, the late checks they have been sending us have all bounced upon deposit. They settled the January check but have since failed to return calls or emails and now owe us 2 months rent. We have contacted our tenant who will now be paying us directly. In addition, we have been paying $100 per month for yard maintenance but it appears this hasn't been done in months. What is our best course of action to get the money owed to us. They also have the tenants initial deposit and I fear this will be difficult to get back as well.
2 Answers from Attorneys
Most property management companies are required to be licensed and bonded because their usual activities fall within the Department of Real Estate's jurisdiction and under the real estate broker licensing laws. You can probably do an on-line search via www.dre.ca.gov to find out if this firm has a license and is bonded. Also, I believe property managers are required to deposit rent checks received from tenants into a trust account, as the funds belong to the client, at least after the management fee is deducted. Same with deposits, I'm pretty sure. It sounds to me as though your manager is not abiding by the law. I suggest doing a little investigation, reviewing your contract, then confronting the company's owner.
If the management company owes you money, their relationship with you is most likely governed by any contract between you and the management company. I suggest you take this contract and get a consultation with a competent real estate attorney near you.
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