Beyond Bending Tell You How
Property management companies are supposed to help property owners and tenants alike, but unfortunately, not all property management companies are created equal. Some engage in unethical and illegal practices that can cause major headaches for everyone involved. In this blog post, we’ll explore what it means to be a corrupt property management company, how to spot them, and what you can do to protect yourself.
Before we dive in, it’s important to understand what property management companies do. These companies are hired by property owners to handle the day-to-day operations of their properties, including renting out units, collecting rent, handling maintenance requests, and more. Tenants interact with property management companies regularly, so it’s crucial that these companies are trustworthy and operate with integrity.
What is a Corrupt Property Management Company?
A corrupt property management company engages in unethical and sometimes illegal practices that harm property owners and tenants. These practices can include:
- Embezzling funds
- Charging illegal fees
- Ignoring maintenance requests
- Discriminating against tenants
- Engaging in fraud
These practices can have serious consequences for tenants and property owners alike. For example, if a property management company embezzles funds, property owners may not receive their rent payments, and tenants may be forced to move out if the property falls into disrepair due to lack of maintenance.
How to Spot a Corrupt Property Management Company
Spotting a corrupt property management company can be difficult, but there are a few red flags to watch out for:
- Unprofessional behavior – If a property management company is unresponsive, rude, or unwilling to answer your questions, it may be a sign that they are not operating with integrity.
- Illegal fees – Some property management companies charge illegal fees, such as non-refundable application fees or excessive late fees. Make sure you understand what fees are allowed by law before signing a lease.
- Unexplained charges – If you notice unexplained charges on your rent statement, it’s important to investigate. Corrupt property management companies may try to sneak in extra charges to make a profit.
- Discrimination – If you feel that you are being discriminated against by a property management company, it’s important to speak up. Discrimination is not only unethical but illegal.
- Failure to perform maintenance – If a property management company is not performing necessary maintenance on the property, it could be a sign that they are not fulfilling their obligations.
What to Do If You Suspect a Property Management Company is Corrupt
If you suspect that a property management company is engaging in unethical or illegal practices, there are several steps you can take:
- Document everything – Keep a record of all communication with the property management company, including emails, phone calls, and in-person conversations. This documentation may be useful later on if you need to take legal action.
- Speak to an attorney – If you believe that a property management company has engaged in illegal activity, it’s important to speak to an attorney. They can help you understand your rights and guide you through the legal process.
- Contact regulatory agencies – Depending on the nature of the corruption, you may want to contact regulatory agencies such as the Department of Real Estate or the Better Business Bureau.
- Consider legal action – If you have been harmed by a corrupt property management company, you may be able to take legal action. This could include filing a lawsuit or joining a class-action lawsuit.
How to Protect Yourself from Corrupt Property Management Companies
The best way to protect yourself from corrupt property management companies is to do your research before signing a lease. Here are a few tips:
- Read reviews – Check out online reviews of the property management company before signing a lease. If other tenants have had negative experiences, it’s likely that you will too.
- Ask questions – When touring a property, ask the property management company questions about their policies and procedures. If they are unwilling to answer your questions, it may be a sign that they are not operating with integrity.
- Understand your lease – Make sure you understand all aspects of your lease before signing it. If there are any terms that you don’t understand, ask for clarification.
- Know your rights – Familiarize yourself with your rights as a tenant. This will help you spot illegal practices and stand up for yourself if necessary.
- Keep records – Keep a record of all communication with the property management company, including emails, phone calls, and in-person conversations. This documentation may be useful later on if you need to take legal action.
The Cost of Corrupt Property Management Companies
The cost of corrupt property management companies can be high for both property owners and tenants. For property owners, embezzlement and other illegal practices can result in financial losses and damage to their property. For tenants, corrupt property management companies can lead to unsafe living conditions, financial losses, and even eviction.
In some cases, the cost of corruption can be measured in human lives. For example, in 2016, a fire broke out in an Oakland warehouse that had been illegally converted into living spaces. The property owner and the property management company responsible for the building had a history of disregarding safety regulations, and 36 people died in the fire.
Conclusion
Corrupt property management companies can cause serious harm to property owners and tenants alike. By understanding the red flags and taking steps to protect yourself, you can avoid falling victim to these unethical and often illegal practices.
