Termination/Transition of PM

Started by CathyT1 • 3 replies • 1167 views

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CathyT1 (Washington)
Posts: 68

Posted:

Our contract with our Property Manager Co. terminated on Jan. 31, 2008. We transitioned to a new PM on Feb. 1, 2008. Unfortunately, the past PM company refuses to provide the board or new PM an updated ledger of our financial account (Keep in mind, our annual dues were due in Jan.). We asked for the ledger of annual dues paid by homeowners, which is vital in our accounting and budget estimates, as you can imagine. They also did not send out violation letters in Jan. The past PM is absolutely refusing to provide the requested information. Does anyone have any suggestions?

HaroldS (Arizona)
Posts: 906

Posted:

Do you still owe them money? If not and they are just being ornery, you should get a lawyer to write them a letter. Those records are your property. That is the hazard of entrusting a contractual entity with the sole source of your records. Do a search here for previous threads on this subject.
Terminated management companies are notorious for doing this. We nearly lost our common areas because a terminated MC did not forward tax bills to us and no board member NOR the replacement MC were sharp enough to miss the tax bills. The board is ultimately responsible for their records. To rely strictly on an MC is asking for trouble.

CathyT1 (Washington)
Posts: 68

Posted:

As far as I know, we do not owe them any money. They also paid themselves without the board's approval too. This company is known for these types of business ethics. I suppose we could file with the Better Business Bureau?

GloriaM (North Carolina)
Posts: 829

Posted:

Cathy:

A couple of things; when monthly financial statements are emailed to the board doesn't the board keep them on file? The President should have a President's book with his/her records kept. Every month when the PM sends their reports the board should keep them.

Although I am not saying it is not the PM's obligation to keep accurate records, it is! But sometimes when you have a bad PM the board's back up information is important.

Remind the PM with a certified and regular mail letter that they are required per their contract to turn over the files at termination. If not report them to the police, Magistrate or other officals to get your records. I'm sure a well worded letter will end in good results.

Good luck.

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