Property manager due diligence

[kdp4163]

Jurisdiction

Nevada

Is this property manager liable? The property manager failed to disclose that the prospective tenants had credit scores in the 500s, a previous eviction & over a dozen delinquent/charged off accounts. The tenants were late on the rent several months in a row prior to moving out. They left a mess when they moved out, and they destroyed the carpet/paint. The property manager never conducted a periodic inspection during the year lease, nor a pre-move out inspection, despite knowing the tenants were high risk. The property manager also refused to hold the tenants liable for the damages when they moved out.

 

[mightymoose]

The property manager is responsible for whatever things the property manager is contracted to do.
If the property owner is unhappy with the performance of the property manager then the property owner might want to consider hiring a new manager.

Is the property manager responsible for the damages caused by the tenant? Nope.

 

[kdp4163]

Thanks for the response. What about recouping what I paid them to manage the property?

 

[mightymoose]

Did you have a contact with the manager? Review that contract to find out what your options are.
Your fastest and most effective solution to the problem is to find a more responsible manager.

 

[kdp4163]

Yes, we spoke fairly often about the late rent & the tenants moving out. At this point the tenants are gone, and I'm not using the manager anymore, but now I'm stuck with the bill for all the damages. The final kicker was getting my hands on their credit report(s).

To me, the manager should be liable for negligence/incompetence due to their failure to perform their fiduciary duty/due diligence, since they failed to adequately screen/disclose the tenants credit/eviction history, and they failed to conduct any inspections knowing the tenants were high risk.

 

[army judge]

The owner can sue the tenants.

I suspect the property manager knows the old adage about getting blood from a turnip.

More than likely pursuing the former tenants would be an exercise in futility.

Your property manager didn't want to waste more money pursuing two broke, destitute deadbeats.

If you're going to play the rental game, expect to get stiffed now and again.

Even the best of people can run onto the worst of times, job losses, health issues, bad decisions, divorces, etc...

Not much you can do, but let it go, move on.

I owned dozens of rental homes 20 years ago.

I sold them all, gave three away to relatives.

There are many legal ways to grow your money.

 

[adjusterjack]

To me, the manager should be liable for negligence/incompetence due to their failure to perform their fiduciary duty/due diligence, since they failed to adequately screen/disclose the tenants credit/eviction history, and they failed to conduct any inspections knowing the tenants were high risk.

You could be right but talking about it isn't going to recoup any of your losses. Hire a lawyer and file a lawsuit against the property manager for professional negligence. Count on paying an average hourly rate of about $300 and a few thousand as a retainer to get him started. If you aren't willing to do that you can try it on your own in small claims court.

 

[zddoodah]

Is this property manager liable?

Liable to whom?

The property manager failed to disclose that the prospective tenants had credit scores in the 500s, a previous eviction & over a dozen delinquent/charged off accounts.

Failed to disclose to whom?

The property manager never conducted a periodic inspection during the year lease

Did the lease provide for such inspections? The law does not so provide.

The property manager also refused to hold the tenants liable for the damages when they moved out.

What does this mean? The landlord/owner of the property would be the appropriate person to seek to do this.

If you're asking whether the property manager has any liability to the landlord/owner of the property, that depends first and foremost on the terms of the written management agreement between the manager and the owner. I note that one of the prior responses asked if you had a (written) contract with the manager and you didn't answer that question.

What about recouping what I paid them to manage the property?

What about it?

To me, the manager should be liable. . . .

So...contact a local attorney about suing. You don't need our permission.