Property Management Issues In Tucson
Complaints about property managers in Arizona are on the rise.
Recently, a property manager located in Tucson was ordered to stop doing business by the Arizona Department of Real Estate.
The government agency issued a cease-and-desist order to the property manager, contending he demonstrated negligence and incompetence in the operation of his business.
The investigation into the property manager’s business originated when a property owner complained to the agency about his performance.
Upon an examination of his business, the Arizona Department of Real Estate determined he no longer had a valid real estate license. In addition, he no longer had a property management trust account nor could he find records of the financial transactions for his business.
The property manager has been precluded from participating in rental or property management work until he is in compliance with Arizona law.
Similar problems taking place across Arizona
Across the state, officials have noted an increase in the number of reported issues with property management companies.
Over the past year, over 30 property managers and real estate agents in Arizona have been indicted, lost their licenses or have been told to stop doing business. In just the past month, five property managers in Arizona have received cease-and-desist orders from the Arizona Department of Real Estate.
In Arizona, property managers are generally required to have a valid real estate license to engage in business. Complaints about the property management companies included the failure to maintain a valid real estate license, the failure to maintain accurate records and even complaints of property managers stealing rent money from tenants and property owners.
Seek the help of a legal professional
Hiring a property management company is often the best way for commercial property owners to run their business. Unfortunately, management companies that fail to adhere to Arizona law can create significant problems for property owners.
In addition to ensuring the property management company with which you do business is properly licensed, it is a good idea to consult with an attorney to ensure your investment will be handled properly. Property management companies should provide regular statements to the property owner, including an accurate financial account of the property.
Property owners should be able to entrust the day-to-day care of their investments to property management firms. When such companies fail to perform their duties, property owners should seek the advice of a skilled real estate attorney. In such cases, a knowledgeable lawyer will work to ensure the property owner’s rights are protected.