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landlord vs rental management co

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klyncher

Member
What is the name of your state? RI
After failing to find a suitable tenant for my rental property I hired a rental mgmt co to simply find and screen potential tenants for me. Prior to finding a tenant they informed me of some items they thought needed repair to make the units more appealing. I completed all days before the lease signing,except for a hole in one of the closets wall (fallen plaster from a roof leak). I didnt get it done because the mgmt co has a construction dept which completed the other repairs for me but wanted to overcharge me about $240 to cover a 2.5X3.5 area hole in a closet which is hardly visible due to its location on the corner of a slanted wall. I did tell them(const co) that I would take care of it soon through someone else. They also promised me photos of the repairs done and I have yet to see anything.

At the signing of the lease with the new tenant she refused arguing to the mgmt co that the unit had too many items (wanted new vinyl windows, new door lock/keys, new doors, new knobs,etc) and also feared that her 2yr old child would eat the debris which was left on the closet floor. THey apologized and stated that the tenant was playing games with them too because she had changed her mind 4 times in 3 wks (they never informed me of this before) and that it appeared she wanted to go live with her stepfathers house for less money. They also claimed that they never promise the applicants that any repairs will be done but rather inform the owner/landlord about items and is up to the owner to complete the repairs.
I was upset since I wasnt aware that this issue would be a deal breaker since
I completed all repairs they sent me via email except for the closet. tHey said they could talk to the applicant and suggest to her to allow me some time days to complete the necessary repairs that may make the unit unsafe. I changed my mind and called back advising them that I was no longer interested in the applicant. THey insisted and I later agreed with taking the tenant under the condition that the tenant would move in and allow me time to do any necessary repairs.
She signed on 5/2 and on 5/3 when she appeared to move in the tenant again calls me and the mgmt co arguing she was lied to about the unit's condition and didnt want it. Her husband (she was aledgedly a single mother)calls me to argue about how the mgmt co only wants to get paid and his wife was lied to and that the mgmt co went to her current house to sign the lease and she never saw the apt prior to signing. They were also promised all repairs were done. I informed them that they needed to resolve the issue with the mgmt co. THe owner of the mgmt co calls me after realizing the tenant was going to sue and file complaints and insisted that I take care of any items that may be a health/health hazard. I agree as long as I had a 30 days period of time to complete these repairs deemed necessary or making the unit untennantable. He added that he had scheduled an appt with the tenant to do a walkthrough the apt again to find what was deemed necessary repairs according to code. I told him to fax/email me the list for me to review.
To my horror what I received instead is a signed agreement between the tenant and the mgmt co acting as my "agent"/on my behalf agreeing to over a dozen new petty/cosmetic repairs ranging from new knobs, clean window sills, new refrigerator grid,etc( nearly all were new items that were never brought up prior to the lease signing-except for the closet) and none appearing to be any type of hazard. they claim I needed to do the repairs to make the unit tenantable.THe agreement also stipulates that if the repairs are not completed in 30 days I would have to return their deposit of $800 which they (mgmt co)collected and still have but I used as a credit towards the repairs the const co did on the apt which totalled $720) so all thats due to me is $80, and they would keept the tenants 1st month rent $800 as their fee.

How can they do that if they're not my prop managers, the contract I signed clearly states they only screen/find . How can they act as my agent witihout my knowledge, consent and authorization???? Is this legal just because they found the tenant. I can understand how they can make a new contract after the lease signing to avoid returning the tenant anything.
I am sure they did this to cover themselves and not have to return any of the fees they collected.They know I cant possibly complete all those repairs in 30 days, they also know I am financially unable to do this repairs now (except for the closet) and dont feel they are warranted. surely its a good idea to get these items done for maintenance but are not required nor affect the quality of life of the tenant.
My other issue is I am selling the property too, so if I agree to anything with the tenants is the new landlord/owner required to honor any agreements prior to his ownership???? Or would the tenants be able to sue. I have agreed to give the new owner $17k in cash for repairs on the house which includes new windows and other items he wants since he intends to live there too. I havent inform anyone the tenants of anything yet because of fear that we dont close or anything happening which could prevent the sale to complete.
Last issue, I didnt sign the lease yet, they faxed it to me signed by the tenant however I was to sign it and return it back but havent as yet. Could I use this to void the lease/contract.??? WHat are my options /choices right now.??

THanks in advance for any advise you can provide!!!!What is the name of your state?
 


seniorjudge

Senior Member
klyncher said:
What is the name of your state? RI
After failing to find a suitable tenant for my rental property I hired a rental mgmt co to simply find and screen potential tenants for me. Prior to finding a tenant they informed me of some items they thought needed repair to make the units more appealing. I completed all days before the lease signing,except for a hole in one of the closets wall (fallen plaster from a roof leak). I didnt get it done because the mgmt co has a construction dept which completed the other repairs for me but wanted to overcharge me about $240 to cover a 2.5X3.5 area hole in a closet which is hardly visible due to its location on the corner of a slanted wall. I did tell them(const co) that I would take care of it soon through someone else. They also promised me photos of the repairs done and I have yet to see anything.

At the signing of the lease with the new tenant she refused arguing to the mgmt co that the unit had too many items (wanted new vinyl windows, new door lock/keys, new doors, new knobs,etc) and also feared that her 2yr old child would eat the debris which was left on the closet floor. THey apologized and stated that the tenant was playing games with them too because she had changed her mind 4 times in 3 wks (they never informed me of this before) and that it appeared she wanted to go live with her stepfathers house for less money. They also claimed that they never promise the applicants that any repairs will be done but rather inform the owner/landlord about items and is up to the owner to complete the repairs.
I was upset since I wasnt aware that this issue would be a deal breaker since
I completed all repairs they sent me via email except for the closet. tHey said they could talk to the applicant and suggest to her to allow me some time days to complete the necessary repairs that may make the unit unsafe. I changed my mind and called back advising them that I was no longer interested in the applicant. THey insisted and I later agreed with taking the tenant under the condition that the tenant would move in and allow me time to do any necessary repairs.
She signed on 5/2 and on 5/3 when she appeared to move in the tenant again calls me and the mgmt co arguing she was lied to about the unit's condition and didnt want it. Her husband (she was aledgedly a single mother)calls me to argue about how the mgmt co only wants to get paid and his wife was lied to and that the mgmt co went to her current house to sign the lease and she never saw the apt prior to signing. They were also promised all repairs were done. I informed them that they needed to resolve the issue with the mgmt co. THe owner of the mgmt co calls me after realizing the tenant was going to sue and file complaints and insisted that I take care of any items that may be a health/health hazard. I agree as long as I had a 30 days period of time to complete these repairs deemed necessary or making the unit untennantable. He added that he had scheduled an appt with the tenant to do a walkthrough the apt again to find what was deemed necessary repairs according to code. I told him to fax/email me the list for me to review.
To my horror what I received instead is a signed agreement between the tenant and the mgmt co acting as my "agent"/on my behalf agreeing to over a dozen new petty/cosmetic repairs ranging from new knobs, clean window sills, new refrigerator grid,etc( nearly all were new items that were never brought up prior to the lease signing-except for the closet) and none appearing to be any type of hazard. they claim I needed to do the repairs to make the unit tenantable.THe agreement also stipulates that if the repairs are not completed in 30 days I would have to return their deposit of $800 which they (mgmt co)collected and still have but I used as a credit towards the repairs the const co did on the apt which totalled $720) so all thats due to me is $80, and they would keept the tenants 1st month rent $800 as their fee.

How can they do that if they're not my prop managers, the contract I signed clearly states they only screen/find . How can they act as my agent witihout my knowledge, consent and authorization???? Is this legal just because they found the tenant. I can understand how they can make a new contract after the lease signing to avoid returning the tenant anything.
I am sure they did this to cover themselves and not have to return any of the fees they collected.They know I cant possibly complete all those repairs in 30 days, they also know I am financially unable to do this repairs now (except for the closet) and dont feel they are warranted. surely its a good idea to get these items done for maintenance but are not required nor affect the quality of life of the tenant.
My other issue is I am selling the property too, so if I agree to anything with the tenants is the new landlord/owner required to honor any agreements prior to his ownership???? Or would the tenants be able to sue. I have agreed to give the new owner $17k in cash for repairs on the house which includes new windows and other items he wants since he intends to live there too. I havent inform anyone the tenants of anything yet because of fear that we dont close or anything happening which could prevent the sale to complete.
Last issue, I didnt sign the lease yet, they faxed it to me signed by the tenant however I was to sign it and return it back but havent as yet. Could I use this to void the lease/contract.??? WHat are my options /choices right now.??

THanks in advance for any advise you can provide!!!!What is the name of your state?



Cut this in half and post it in one of the six other threads you started on this subject.
 

klyncher

Member
Seniorjudge....if I did as you suggest, then you wouldnt have anything to look forward to in your life. Cant avoid the spotlight right??
You're clearly a perfect example how a "special few" can read but can't comprehend or take the time to understand what they read. :confused:
If my posts are too redundant or boring for you then just dont waste your precious and valuable time reading or responding to my posts.
"Silence is golden" , try it**************..!

For everyone else I would really appreciate any mature response to my questions. Thanks in advance.
 

ecmst12

Senior Member
If you want responses, keep your posts short and to the point, stick to the relevant facts, and make your actual questions clear. And don't cross-post. You're asking for a favor - free advice! Which means you should make your request for it as easy for people to understand as possible - since they are doing you a favor! You certainly don't have room to be snobbish at people who want you to make it easier for them to GIVE you free advice. Sheesh.
 

ENASNI

Senior Member
Two questions klynch.

A) Who do they have representing them?

2) Who do you have representing you?

Well maybe three...

Did I spell representing right? :o

Good luck, something smells like something has been out of the net too long.


( Yo folks I think klinch's last post was in March unless I have been away too long, did I miss something? Give these guys a break sometimes. Sheesh, sometimes we do need the whole story. )
 
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klyncher

Member
you're right ECMST12, my posts tend to too long (my husband complains about me being too detailed) . Sorry:o . Maybe I have too much drama being a landlady, this is why I am selling this rental property too.
I am sorry if I appeared snobbish, that was not my intention I thought "seniorjudge " was being cynical and appeared to imply that my current issue was the same old story.
I'm sincerely appreciative of any advice or constructive opinion be it legal or not. If I misinterpreted "seniorjudge" them I do apologize, I have a knot in my stomach over this new issue with the mgmt co and I was a bit disappointed when I didnt get a constructive/helpful response to my post.

I'm going through a rough time right now and I'm dying to get rid of this house which is draining me financially (it has been partially or totally vacant for over 1.5 years mainly because we live out of state (6 hrs away).

ENASNI, I signed a simple contract with the mgmt co to only find/screen the suitable tenants. THey were only to determine if the unit was rentable or not. THey assured me the unit was good and looked nice. THe only complaints we had from most applicants was they wanted some utilities included and wanted me to allow them to install a washer/dryer, to which I refused. I dont know what type of contract, if any the "tenants" may have with them. I doubt it since they claim the applicants dont pay a fee other than $20 application fee/background fee.
Can they still represent me as my "agent" and make agreements without my consent or knowledge. I agreed to see the list of repairs, not accept any list of repairs blindly.
THanks again for your responses.:)
 

ENASNI

Senior Member
One comment Ms. Klynch, nice of you to apologize, but sometimes our quirks work for us. ;)

Another comment. Oy lady I had to wade thru that big ole post of yours again to get your jist. :p

The thing is even though you say you only signed a simple contract that they were to screen you also referred them to:

They were also promised all repairs were done. I informed them that they needed to resolve the issue with the mgmt co.

That infers they DO have some more power than you afore so mentioned. ( I love talking like that, I don't know what I am saying but it sounds important. one of my quirks)

Sooo... anyways... even if you are so far away you left this mess to people who were trying to do something to get you a tenant that was high maintanence and... well... it fell through.

These HM tenants seem to think that there are code violations and your "prop managers" as they deem themselves are ... well making their levi's none too clean. You need to get in there or get someone in there representing you ( that you have a clean contract with ) and find out what the jiminiy crickets is GOING ON.
 

klyncher

Member
I think I need to go to a "keep it short" seminar:p
Anyways, ENASNI, what I really meant when I told them to talk to the property mgmt co was to get their money back. they didnt want the apt and we told them to go back to the mgmt co who collected their money and to resolve all issues with them since I didnt know who was telling the truth.The mgmt co claim they normally dont get involved with repairs, however they did as a courtesy being that I was a 1st time customer and they referred me to their own const co who completed the repairs.

Update- I just got off the phone with the tenant for the 1st time, and informed her my decision to return her deposit back and advised her to to pursue getting her 1st month rent back from the mgmt co; who by the way has not responded to my 6 messages I have left at their office and cell phones.

The tenant also said they havent returned her calls and she was simply told ( she doesnt speak/read english) to sign the list of repairs , unaware it was an "agreement" which wasn not explained to her. She has agreed to accept the deposit back and to move on.

I consulted with a number of attorneys one who said that the mgmt co may act as my "agent" because agent can be so broad, others said they can not do that if the contract was specifically for finding/screening tenants and not prop mgmt and I could possible sue them for not fulfilling their part to find a suitable tenant and misrepresenting themselves as my agent.
.

Im trying.....:)
 

klyncher

Member
Landlord vs rental mgmt co- update

Im begin sued in small claims by the Mgmt co on 7/6/06. THe claims is for $2300 which includes Renttal services fees totalling $1550 (800 +750).00 and repairs of $720.
The only invoice I've ever received was for the repairs and I informed them that until they refund the tenant I didnt owe them anything since we'd agreed for the repairs to be deducted from her deposit. They were to notify me of the refund so I could remit payment for the "newly due" repair invoice. They never notified me instead I was summoned charging breach of contract claiming I've failed to pay them a non existent bill (never got an invoice for rental services) and for the substandard repairs completed by const co they owned.
The tenant was refunded on 5/31/06 and they filed suit on 6/6/06.
I've since discovered also that their const co bond/insurance expired on 4/12/06 and according to RI Dept of Contractors they're not permitted to conduct business if insurance not updated on file which they did during the repairs, they have 2 former complaints and according with the RI Business Reg Dept/Real Estate the mgmt co is not licensed/registered to perform any realty service without a license.
Although the mgmt co owner is a lic salesperson with REmax he's not permitted to conduct realestate services under his rental mgmt co unless he's a lic broker.

My questions:
Is the information on the owner/realtor lic , mgmt co license and const bond/ins relevant to my case. In addition ,they charged for work I didnt approve and demanded payment anyway. Immediately after I canceled my co ntract with them they retaliated with threats of a mechanics lien for the repairs. I never refused to pay them for the work, but now I have considered how much they deserve to be paid for the poor work.
Can I counterclaim for the rent I lost due to their misrepresentations to the tenant about the repairs??
Do I need the tenant as a witness or need a notorized statement?
Does another estimate of the repairs done help or a statement from a contractor stating the poor quality of the work completed?
Dont they have to bill me or send notice for services before filing suit?. THe rental mgmt contract has no clause for cancelations and was told could cancel anytime.
Can they sue for services on a unit which was never rented (2nd apt) nor approved for rental by owner ( I needed to approve the tenant) ?.
Is it true that even if I hire an attorney I need to be present on the trial date/in court.

Thanks for any ideas and your advice.

PS: By the way I finally sold the property last month. HURRAY!!!!!
It was undersold it but at least I dont have the headache of a mtg/tenants/maintenance.
 
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klyncher

Member
Update!! Desperate ex-landlady in Court

I had my hearing on 7/6 and lost the 1st count :o and won the 2nd count.
1st count was breach of their exlusive right rent contract and the Mgmt co claims I canceled my contract because I sold my house. They never mentioned the tenant and the complaints. The judge focused on the contract and told me I had no right to cancel the contract since the mgmt co had exclusive rights to find any tenant they felt suitable without my approval.The judge was clearly under the impression that the Mgmt co managed my property which is not the case , they simply provided a 60 days rental screening service. At the time of my contract they didn't offer residential mgmt services, now they do.
THe judge ignored an emailed letter I provided from the RI Realestate Commission Administrator stating that the Mgmt co owner was not licensed to perform rental services under his own company unless he was a Real estate broker which he wasn't, furthermore the Mgmt owner who is a Remax realestate salesperson cannot work independently of the agency/broker he is affiliated and is in violation of Rule 2 Agencies of Commercial Licensing Regulation #11 located at www.dbr.state.ri.us . The Mgmt owner solicits clients for his business from his Remax office and the Remax agency broker/owner has approved this ,however was unaware it was not permitted by law. Apparently the Mgmt co doesnt need a license to manage, but do need a license to rent other peoples property.

Coincidentially, they used the timeline of 28 days between the sale of my house and cancellation of the Mgmt co contract as my reasons to cancel their contract, rather t han the reasons I gave them relating to the tenant they found. Tenancy of my 1st floor was actually included in my sales contract and I was afraid the buyer would cancel once I informed him I no longer had a tenant. The Mgmt co excuse for refunding the tenants monies was because I failed to return a signed lease, so there was no valid lease. I didnt return the lease was because the tenant demanded her money back and dint want the apt. Besides, an attornyey told me it didnt matter if I signed the lease or not, it was still binding as a verbal lease once the tenant had the keys to the apt.
I also spent $720 in repairs on the Mgmt co recommendation in preparation for the new tenant. tHey were also awared rental fee on the 2nd unit although there was no lease, but hey claimed they had to refund the applicant the holding fee they had collected.

The 2nd count was failure to pay for the mediocre repairs their subsidiary construction company performed without a license/bond/insurance. Their attorney opted to dispose after they failed to produce the contractor license the judge demanded.

I've appealed to the Superior court and I dont know what to do. I was emotional and upset because they lied in court and that I wasnt as prepared as I could have.. My realtor couldnt appear as he had promised, I failed to present my sales contract to show the inclusion of the tenancy, I should have subpoena the tenant and I should have requested an official letter from the Ri RE commission rather than an email with typo erros.
The judge barely allowed me to spea and their composed attorney was permitted unlimited interruptions and to present all his evidence including recess time to find their contractor license they didnt have.

To my surprise the court clerk told me I have to file motions for the hearing. I have no idea what's the process and the clerk doesn't provide legal advice. I cant afford an attorney at this time and I am so nervous for I have no clue as to what motions to file or what to do.
I would appreciate if someone could explain what's the process and what suggestions on motions to file to proceed with the appeal and more importantly if I should request a jury on non-jury hearing.

Thank you anyone for any suggestions and advice!!!
 

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