Frustrated with your bad property manager? Unfortunately, many landlords grow tired of excuses from their property management company. Sometimes warranted. Sometimes unwarranted.
If you have reached a point of no return, this blog will help you find out where to report bad property managers. It should be stated that these suggestions are taken in order.
Resolution with the broker of property management
The managing broker of the property manager should be the first person to communicate with. Ultimately, they are responsible for all actions under their management firm.
Report to the broker the issues that are occurring. Request for corrections and an action plan. Brokers are responsible for a lot of rental units and sometimes they do not know issues happening.
If corrections are not made, proceed to report the property manager to any of the following.
It is important to understand the terms on your management agreement before talking with the broker. Confirm they are in breach of contract.
File a complaint with the Better Business Bureau (BBB)
All local businesses want positive ratings and reviews. The BBB provides this service so local customers can work with better companies.
Reporting a management firm to BBB is the offline version of writing a bad Yelp review. You get satisfaction from venting and get to report them as bad property managers. Except there is no physical recourse against the property manager. Your management agreement can continue to stand.
Use this tactic when a management company is failing to meet their end of agreements. As well as get back into good standing on the management agreement.
Report a complaint to State Real Estate Department
Assuming your property manager is licensed, they must register with the state board.
Google your state and ‘department of real estate’. For example, Arizona Department of Real Estate.
There should be a link to file a complaint. Follow the instructions to file a complaint.
This action can impact the management firms license. As well, require the property manager to pay fines.
File a complain with National Association of Realtors
Not every licensed real estate agent is a Realtor. Becoming a Realtor requires the licensee to be a member of the National Association of Realtors.
If your property manager or broker are registered Realtor’s, you can file a complaint.
- Complaint Form – click here
- Instructions for filing and replying to an Ethics Complaint – click here
You can submit this form online or mail. You can mail complaints to:
638 Independence Parkway, Suite 100
Chesapeake, VA 23320
Report Property Manager to HUD
HUD is the federal department that oversees everything and anything for housing and rental activities. They set Landlord-Tenant laws and handle complaint cases.
HUD has very strict laws and hefty fees to protect tenants. Landlords do not want to be involved with a HUD class. If you know your property manager is discriminating against protected classes, immediately report them.
Fair Housing Act, FHA, protects the following classes:
- Sexual Orientation
- Familial Status
Contact HUD’s Complaint Line: 800-685-8470
Lawsuit Against the Property Management Company
The previous suggestions allow landlords an opportunity to get out of their management agreement. However, sometimes there was a financial impact that landlords want to correct. There may also be arguments about clauses in the management agreement. Or, determining if they breached their contract.
Landlords can take their bad property management company to court.
Before taking the property manager to court, it is best to advise with a Landlord-Tenant attorney. Allow them to hear your case and determine the best course of action. Even if a landlord does not take their property manager to court, an attorney can advise the most effective solution to report bad property managers.
What to do after you terminate your property manager?
After you report and fired the property management firm, consider your options for management.
You can search for a new property manager. Take the lessons learned from your previous experience and ask them pointed questions. Here are questions to consider when interviewing.
Or, you can self-manage the rental property.
Using Burbz software for rent collection, maintenance requests and tenant screening allows landlords to share management responsibilities. Decide which tasks you can perform and which tasks you want help with. Landlords have complete control and transparency. Allowing you to set access rights to different categories.