Complaints Against Property Management Firms Rising

  
     
October 16, 2012

Denver, CO – October 16, 2012 – Complaints against property management companies have been on the rise in the last two years, nationally and locally according to the Better Business Bureau (BBB). At the BBB of Denver/Boulder, property management companies have been the number three most-complained about industry so far in 2012 with over 340 complaints closed. Last year, property management was the number five most-complained about industry and in 2010, the industry didn’t even make the top ten.

“We can draw a correlation with the increase in complaints against property managers to the very high-demand rental market,” said Hope Marie Sneed, vice president of development and PR for the BBB of Denver/Boulder. “But this is all the more reason for the property management industry to do the right thing and build trust.”

Common complaints filed by tenants are regarding deposits, billing issues, and repair issues. The BBB is also seeing complaints from property owners who hire property management companies to handle their tenant matters. Those complaints are regarding rent not being paid to the property owner on time, and deposits not being collected from tenants.

The BBB offers the following advice to renters and property owners when dealing with property management firms:

  • Check first with the BBB. If you’re a renter, find out what property management company handles the property you’re interested in and check it out. If you’re a property owner, check first before hiring someone to handle your tenant matters. Visit www.denver.bbb.org or call (303) 758-2100.
  • Property owners: ask questions. Find out how many properties the company already manages, what kind of software they use, and how they communicate with tenants.
  • Read the lease/contract carefully. Many issues arise because there is confusion about the lease or contract, or important situations are left out, or they are simply not being read closely.
  • Know who is responsible for what. Not being clear on responsibilities is what often causes disputes about repairs. Renters should make sure they understand what is considered “normal wear and tear” and what party is responsible for what.
  • Know your rights. Know your rights and local laws before heading into an agreement and especially before handing money over.

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About the BBB

The BBB is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. The BBB provides objective advice, BBB Business Reviews , BBB Charity Reports and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers dispute resolution services for consumers and businesses. The first BBB was founded in 1912. Today, there are 115 local, independent BBBs across the U. S. and Canada. Please visit www.denver.bbb.org for more information.