how and where to file complaints against property management companies

It can’t be overemphasized on the importance of having a property management company you can fully trust. Sadly, many property management companies do not live up to their reputation and, as such, fall below clients’ expectations. Knowing what to do in such a situation is crucial. The process of filing a complaint against your property management business is what I intend to discuss in this article, along with some advice on how to do it effectively.

Property Management Company

A property management company entails the use, upkeep, control, and supervision of real estate and other tangible assets. Real estate for homes, businesses, as well as land can be included. The term “management” refers to the requirement for real estate to be looked after, monitored, and held accountable for its condition. This is very similar to the managerial function in any company.

An owner of a multifamily building, condominium, or single-family house can hire a reputable property management firm. The business will then market the rental property, respond to requests from potential tenants, screen applicants, choose qualified candidates, draft a lease agreement, carry out a move-in inspection, relocate the tenant or tenants into the property, and start collecting rent. After that, the company will handle any maintenance issues, and give the owner(s) financial statements and any other pertinent data about the property, etc.

Read Also: PROPERTY RISK MANAGEMENT: Commercial Property Risk Management Software

Types Of Property Management Company

There are four primary types of property management:

#1. Residential

Rental properties are often managed by residential property managers. This kind of property manager deals with the tenants of a building. However, residential rental properties go beyond mere flats. Condos, vacation houses, single-family residences, and gated communities are all included in the term.

#2. Commercial

Non-residential properties of all kinds are under the control of commercial property managers. Commercial property management typically affects entrepreneurs who require a workspace to rent. Besides, commercial property managers deal primarily with tenants who have long-term leases on spaces. They converse with clients in retail establishments as well as monthly tenants in coworking spaces.

#3. Industrial

The distinctive aspect of industrial property management is the requirement to follow stringent building codes. You must abide by local rules because most industrial complexes deal with production and manufacturing to ensure a high return on your investment. In reality, hundreds or even millions of dollars worth of products can be ruined in a matter of minutes if just one aspect of production is interfered with.

#4. A Special Purpose Property Management

A special purpose property is ineligible for simple conversion to other uses by definition. As a result, most special-purpose properties cannot be sold or utilized for purposes other than those for which they were designed. For instance, it is difficult to convert a football stadium into apartments, senior housing communities are difficult to convert into workplaces, and turning university campuses into shopping malls is not practical.

What Are The Benefits Of Using A Property Manager?

The next important choice you’ll need to make after buying your investment property is whether to hire a property manager to assist you or manage it yourself. Here are some benefits of using a professional property manager:

#1. Avoid Unpleasant Confrontations

They act as a mediator between you and the renter; a property manager will assist in resolving issues like late payments and damaged property.

#2. On-Time Rent

Rent will be paid on time by your tenant’s thanks to diligent property managers. The key to obtaining rent payments on time is consistent rent collection, and they will enforce the terms of the lease if payments are not made.

A top-notch property manager on your side might shield you from potential legal action. Tenant vetting, property inspections, tenant eviction management, lease signing and termination, rent collection, and security deposit management all help to reduce risk.

#4. Accounting and Reporting

A competent property management company will deliver your financial package and owner cash distributions on the same day each month and will have a specialized bookkeeping and accounting staff.

#5. Professional Marketing

An experienced management firm has the tools to market the home and make sure it gains traction on rental websites. Professional images will be taken for the property to stand out in the market.

How To File Complaints Against Property Management Companies

It is critical to comprehend what your real estate agent is capable of before lodging a compliance notice. However, the best practices in the field should always be followed by property management organizations. To uncover significant rights and obligations, it’s important to refer to the individual contract you have with your property manager.

Here are steps on how to file complaints against property management companies.

#1. Directly Contact the Property Management Company

Have you attempted to speak with your property manager directly to voice your concerns? If not, begin there. Consider going to their offices to speak with them in person. Undoubtedly, miscommunication is a major cause of most disagreements.

#2. Consider Using a Communication Tool Between Tenants and Property Managers

This is one of the steps on how to file complaints against property management companies. Use communication tools between renters and property managers if you feel that communicating with your property management directly isn’t helping or they aren’t making efforts to resolve your difficulties. For this purpose, a variety of communication options are available, and they can be a wonderful way to get in touch with your property manager.

#3. File a Complaint with the Department of Housing and Urban Development (HUD)

HUD handles complaints ranging from:

  • Fraud, poor management
  • Poorly maintained
  • Health risks
  • Safety concerns
  • not receiving security deposit discrimination, etc.

HUD is the place to go if you have any housing or tenancy-related issues that you believe your landlord or property manager isn’t taking seriously.

#4. File a Lawsuit Against the Property Management Company

This is also one of the steps on how to file complaints against property management companies. You can choose to sue the corporation if, for some reason, complaining to HUD is not an option. Find a trustworthy tenant-landlord lawyer to go over your choices with you before you do that. An attorney can be incredibly helpful to you because they have an in-depth understanding of local and state landlord-tenant and housing legislation. They’ll clarify your legal rights and obligations regarding suing your property manager. And once they do, you’ll be able to decide whether or not it would be wise to file a case.

#5. File a Complaint with the Better Business Bureau (BBB)

Your property management firm will be under a lot of pressure to respond and fix your issues if you file a complaint with the Better Business Bureau.

Some of these divisions have some connection to housing and tenancy. They consist of the following:

  • Human Rights: Deals with regional, state, and federal anti-discrimination laws in housing, employment, and public places.
  • Construction Services Division: If your issue includes structural issues with your rental property, contact the construction services division. In essence, this division is in charge of all inspection and construction permit requirements.
  • Planning and development are in charge of ensuring that residential and commercial structures are safe, affordable, and compliant.

Where To File Complaints Against Property Management Companies

A list of places you can file a complaint against a property management company includes:

  • Filing a complaint with The Department of Housing and Urban Development (HUD)
  • Filing a lawsuit in court.
  • Complaining with the Better Business Bureau (BBB)
  • Filing a complaint with the city’s relevant department

How A Property Management Company Makes Money

Any price that a property manager charges for rendering any form of service on the rental property is referred to as a property management fee. Management businesses in the real estate industry charge a variety of fees to maintain rental properties.

The list of fees includes the following:

#1. Property Management Fee

Property management fees are among the most prevalent charges in the management sector. Given that management is the main focus of the business, this cost ought to be one of the most evident. Clients pay these fees each month to guarantee that the property is well-maintained and managed all year long. Depending on the business, these management fees may cover a variety of services, but frequently they cover the following:

  • Rent collection and processing
  • arranging for maintenance
  • Real estate inspections
  • Tenant interaction

#2. Onboarding Fee

When new clients use the management services of the organization, an onboarding fee, also known as a setup cost, is levied. This cost is often a set rate based on the number of units that the new client requires management of. This onboarding fee helps to pay for items like:

  • Account creation
  • examination of the premises
  • Materials for introducing property evaluation

#3. Leasing Fee

The expense of leasing or re-letting a rental property when it becomes unoccupied is covered by this fee. In essence, it includes all the work necessary to locate a new renter to rent the home.

The lease cost normally includes coverage for the following services:

  • promoting real estate showings
  • applicant evaluations
  • first examinations


When looking for a property manager, ensure you do the appropriate research before choosing a particular property management company to work with. The right company is out there; you just have to search for it. Property management companies have come to stay; they make work easier and better for house owners and tenants as they go about other businesses.

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