Deposit Question
I'm a lurker on this site and have an interesting question. I'm a renter that goes through a property management company. When I took this apt, I had to sign a form that my deposit was essentially "property" of the property owner, and the property management company was not "responsible" for it :-o . (She said this had been an issue in the past once where an Owner had somehow skipped out with the deposit)
BTW my check for the Deposit was made out to the Property Managemnet Company . Well, my place is currently on the market with the realtor showing a few times . My "what if "scenario is how do I guarentee my deposit will transfer to the new owner? Now I recently did meet the owner and I don't believe he would skip out. However I do think the whole thing is fishy with the Property Management Company- I don't get a real warm fuzzy from them anyway- I pay my rent on time - I don't call them -- and they don't call me - basically your average ideal tenant with a neurotic cat that uses the toilet( saves a hell of a lot on cat litter and cleaning :-D . So what do you think ?? any of you landlords do this with a property management Co??
I do plan on calling the Mangement Co. to ask about this. Seeing as my contract and my checks are written to them and not the owner- how "legal" is this? I'm thinking it wouldn't should it go before a court. [ Edited by eyeballing on Date 04/01/2004 ]
You're right about one thing- something doesn't sound right. However, I do not believe it is where your concern is. There is absolutly nothing illegal about a mangement company collecting rental installments. The mgmt co. is, in the eyes of the law, an agent and the owner is the principle. As a consumer, you are well protected by the laws of agency. For example, the owner can in many instances be held liable for the acts of his/her agents.
What sounds "funny" to me is the deposit being declared the property of the owner. The deposit is just that: a deposit. It is your money- not the owners (or the mgmt co. for that matter). I suspect that if you review the document you illuded to, it speaks to possession, not ownership. If I'm wrong, please respond with the specific language within the document.
Concerning your deposit transferiing to the new owner, you ask an excellant quetion. I believe CA law requires such a transfer. Your caution is commendable. However, I doubt highly you have anything to worry about. Just keep that cancelled check and make that confirmation call.
PS Any tips on teaching my dog how to use the bathroom?