Your property is your biggest asset. You put a great deal of time into maintaining your property investments, and sometimes it helps to hire a property management company to ease the stress. Unfortunately not all landlords and management companies deliver what you would expect.
Take this recent story for example:
A couple signed a contract with a local Property Management Company in Pottstown. After the property manager found tenants and received a check, he seemed to disappear, leaving no trace of money for the property owners and no keys for the tenants.
Then the property owners received the following email:
[No Name]... Property Management has reached a point where we are unable to meet our obligations and have made the decision to file for bankruptcy protection. Unfortunately, we do not have the resources to make all of our creditors whole at this time. However, we do want to work toward resolving all accounts. We are committed to liquidating all assets in order to rectify the situation. We are currently in the process of finalizing all accounts.
This leaves these property owners with the option to hire a lawyer and file charges for fraud, which is quite the headache. If you ever wondered why state law requires that security deposits be kept in escrow accounts this is a great example.
Having a property management company handle tenant complaints and property maintenance is usually an excellent way to avoid ending up in court. Just be sure to choose a property management company that is experienced and doesn't have a long history of unresolved complaints.
This post was contributed by Pottstown Bankruptcy, a Chester County bankruptcy law firm specializing in Chapter 7 and Chapter 13 bankruptcy proceedings. We remind you that if you are looking for a property manager, you should do your research. Also read what to look for in a property manager.
