A couple of years ago we found ourselves taking on new clients after Simplistic Property Management went bust. Most of these clients were owed large sums of money, which were never recovered, after the principals of the company disappeared and eventually had their real estate licenses revoked. The tenants were similarly impacted as their security deposits were not recovered, leaving the owners responsible for covering those funds. Vendors also found themselves out of pocket.
We now find ourselves in a similar situation, picking up distressed clients from another Orlando property management company. A couple of months ago it seems that Priority One property management (run by Peter Voigt) in Lake Mary dissolved. Their real estate license currently shows "Involuntary Inactive" and several complaints are already in the works. Again, tenant deposits are missing and owners are finding themselves without management and owed large sums of money.
In cases like this, it may be possible for owners to seek redress from the Florida Real Estate Commission (FREC) however a judgement is usually required from the court system first. Once a judgement is obtained by the court, an application may be made to the FREC real estate recovery fund. Unfortunately, many owners reside outside of Florida, or in another country, making a court appearance very difficult. Option 2: hire a real estate attorney at $300/hr and they can probably do it for you. Depending on how much you are owed, it might still be worth it.
All of which underlines the importance of finding a reputable property management team for your investment. If you find yourself unhappy with your property manager, talk to us about making the switch. We fix what's already been done, but hopefully we can give you the peace of mind that comes with knowing your investment is in good hands.