Help. My husband and I have a home we rent out outside of Milwaukee. Prospect management was handling it. Then I called the tenants, and found out Prospect did nothing and wouldn’t return their calls for a year. So I fired them. Then Prospect claims they used the emergency fund we gave them (1500) and the tenants security deposit (1300). I believe they did enough repairs to use our funds, but the tenants too! and is that even legal to use a tenants security deposit? has anyone heard of them or had any experiences with them?
No, it is not legal to use security deposits for repairs! In many states, these funds have to be held in separate accou nts and in some states you have to pay the tenants any accumulated interest.
I would make them substantiate their claims with receipts. Anything that they can’t validate, you need to get back from them (including the entire security deposit), even if you have to go to small claims court.
Also, I hope this is a learning experience for you and all of the newer REIs here! If you hire a managemenat company, make sure you understand what they are doing (or not doing), keep tabs on any money that you’ve given them, and stay in contact with the tenants! It’s your money, your property, and your reputation at stake!
Keith
Keith
I would send them a certified ltter demanding the return of the entire amt $2800 within 5 business days. Forget about their claims of spending the money on “repairs” unless they can show DETAILED and DATED receipts with NAMES and PHONE numbers. Then, call those companies to verifiy the work was done (I bet it wasn’t) Even so, the deposit money should be touched so they owe you $1300 at min. If they sepnt more than $1500, then its on ont heir nuickel since your did not authroize the work (this is where you need to read your contract ;D)
After 5 days, filed a small court claims. I would not play around on this one. Looks like misuse of funds. Any well run company should be able to produce the right documentation within 1-2 days; not rambling excuses on the telephone (probably what you will get).
Good luck