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Difficult (To say the least) Management Company

Started by JenniferB12 • 10 replies • 1665 views

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JenniferB12 (Georgia)
Posts: 7
Posted:
Can we just show up and take posession of our property?

We fired our worthless management company, their contract ends 9/30- we hired a part time coordinator to handle all our HOA duties On Site. All is working great with the Coordinator except our Management company is being anything but cooperative.

Will not answer emails, will not answer phone calls- even our homeowners are posting reviews online about them ... and none of it is positive. They're not answering board members, they're not answering homeowners. Our coordinator is doing what she can but right now she's just a sounding board for all the angry homeowners. Some things can be done but without homeowner files or just simple information- we're kind of stuck.

Now, they won't pay our part time coordinator, actually, won't even respond. We can't pay her ourselves because they won't release any of our funds what so ever to us though we've already opened an account with personal funds to get us started so we can order checks, etc.

Please excuse the term.. but "do they have us by the balls here?" or can we just show up and demand our property back so we can operate properly? Or are we at their mercy till 9/30?
PetunkaM (Florida)
Posts: 1,009
Posted:
Jennifer,
I remember your eager post of 8/12 and am totally amazed you would hire someone before the contract with the Management Company had expired. Why in the world would the Association/Management Company want to pay two managers? Who athorized the second manager?
You did not fire your management company. You still have the contract with them until the end of this month. Sorry about that.

PetunkaM (Florida)
Posts: 1,009
Posted:
PS: Even if you terminated their services, and it does not seem you did, they still are in control. Rgardless, you have to pay them until the end of this month.
PetunkaM (Florida)
Posts: 1,009
Posted:
I did not mean to say 'even'..

Correction: Unless you terminated their services, and it does not seem you did, they still are in control. Rgardless, you have to pay them until the end of this month.

JenniferB12 (Georgia)
Posts: 7
Posted:
Our new person started so we could introduce them to the community and responsibilities during a transition period- rather than starting someone on day one when our info gets dumped off at our front door. And yes, we terminated their services but due to the contract we signed with them we had to give them a 30 day notice.

I guess we were expecting a little more professional cooperation out of this group. Since we didn't get that before I guess it's our fault for expecting professionalism at any point in the end.
PetunkaM (Florida)
Posts: 1,009
Posted:
Jennifer,

Please do not shoot the messenger. I was the one to suggest how you can work around the management company which otherwise has to be a licensed real estate broker in Georgia.
PetunkaM (Florida)
Posts: 1,009
Posted:
Also, Jennifer, the Management Company is working for the BOD. I refuse to accept the fact that you cannot control them?

JenniferB12 (Georgia)
Posts: 7
Posted:
Not shooting the messenger. Our decision was not made lightly and right now the board is working a 2nd full time job to handle what this worthless company is not.

We are dealing with a Mgmt company that not only has been impossible to deal with when we were attempting to work with them, but now that we've let them go- what's the real estate term I'm thinkng of... ethical they are not.. I am pretty sure these guys have never heard the word ethical or know the meaning.

Eventually we figured out they owned all the other companies we were paying separately (law firm, acctg firm, collections agency)-NEVER disclosed to us.. the guy who owns ALL the companies we have to deal with now is a lawyer and he's the best (apparently) at making sure that in the end we're at his mercy and trust me... they're making that clear.

It's taken me 8 months to get an explanation on questionable items they're charging us for, and as an accountant- their financials throw up a big red flag- now that I know they audit their own books (seriously) we will have a full audit done at the end of this year.

Though I know I'm going to get it, whoever wants to post how wrong it was for us to let go of a Mgmt company and hire an in house person- hold off for a while. We didn't have a good company we let go of over petty reasons, we let go of a group of crooks who change their various companies names yearly. For those of you with experience in the audit field- if that doesn't throw up a huge red flag- I dont know what does.

I'm just trying to find out do we need to endure their abuse through this month or do we just need to go to our new lawyer and say "get us out of this mess" because these idiots have 1 intention and that is to ruin us for letting them go.
PetunkaM (Florida)
Posts: 1,009
Posted:
Jennifer,

I would send a letter to the management comany (with a copy to your attorney) to specify a transition period starting Sept. xx ending Sept. xx.
This should include turning over all Association records, briefing the board to address all pending issues, etc. Be firm.

Please make sure your attorney is in no way connected to the management company or its subsidiaries. Amend your annual report should this company be a registered agent for your corporation. Have the financials reviewed by an accountant or an independent committee of your association (depends on the budget). You will have your hands full for a while but it is certainly manageable.

If there is (was) something unethical going on, you can file a complaint with the bureau of professional services or real estate brokers association.

BradP (Kansas)
Posts: 2,640
Posted:
Jennifer...the money is the hoa's correct, so your telling me the management company has control of your back account and the association (board) does not? That seems odd to me. Here are the steps I would take if you don't have control of your account:

1. Have the board contact them or show up at their office and demand your property back.
2. if they fail to do that consult with your attorney and have them write a letter
3. complain to any and all state agency that oversees property manager's in your state.
JenniferB12 (Georgia)
Posts: 7
Posted:
Thanks for everyones input, advise and suggestions! Yes they do have full control of our funds, I am amazed anyone ever let that happen but they did. We've done all the right things except consult an attorney through this process, who knew we would need it. We will without a doubt have an audit done and request an investigation be done on their business after what we've had to go through.

Here we thought our worst thing would be attempting to rectify situations with extremely unhappy homeowners- no idea the management company would be our worst nightmare.

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