I purchased a 4-plex in January with 4 paying tenants through the Marshall Reddick Network recommendation of tninvestments.com. In my first month, I got a statement showing NO TENANTS and a zero balance = no rents received.
When I called they said there was a problem switching over with section 8. The next month I got another zero balance statement showing no tenants/no rent. They said the same thing-- Section 8 problem.
I started calling the Housing Authority myself. After a few weeks, I came to discover that the section 8 problem was pertaining to only ONE tenant, and it was for 30% of the rent.
Enterprise Realtors of Jackson didn't even know there were three tenants living in the complex until April, even though they were the sellers agent, buyer's agent, and the management company. They collected no rent during that time.
I've subsequently switched management companies. Enterprise has not been cooperative at all.
They won't turn over contracts or keys to my new managers. Upon receipt of my letter to change management companies, they asked if they could install a new tenant in unit B. Stupidly, I agreed. It took them over a month to get this person in, and that opened another set of problems with them.
I've received rent from one tenant, one month, nothing more over 5 months with them.
Now, they're billing me for over $1500 for cleaning the unit and a couple minor repairs. They appear to have not disclosed any rents received last month (Betty said the tenant paid, the financial sheet doesn't show it,) and my new manager tells me the new tenant paid the first two months upfront.
Long story short....
Problems in a nutshell:
1. Enterprise Realtors let a tenant stay rent free for 5 months without action (and without knowledge for three months.)
2. Enterprise installed this deadbeat tenant the month before I purchased, and he works for another management company in the area.
3. Enterprise appears to have failed to accurately disclose rents received on my statements.
4. Enterprise has faulty accounting. When you add the numbers on their bill, they're WAY off.
5. Enterprise has their own cleaning lady who cleans the vacant units for $174. They also had a furniture moving guy- who moved some furniture out of a unit, in-house, who they billed out for $420.
6. After calling the utility company today, I found out that Enterprise overpaid on my behalf, and they are entitled to a refund.
There's TONS more to tell.
I honestly don't know what to do. How can I go after the deadbeat tenant?
After having a lawyer look at my contract-- just to get me OUT of the contract with Enterprise, she said the contract is one-sided, and the company has no responsibilities.
How can I go after Enterprise Realtors?
I don't know how to find out what rents they've REALLY received compared to what they say they've received. And, I don't understand how I could have gone from 4 paying tenants to ZERO in one month. I don't understand how tenants could be occupying three units (I found out through the utility co.) and my management company not know this.
They've done the same, actually MUCH worse, to my father. He's been with them for over a year, and the mess they've created for him is HUGE. (I bought before his huge mess was dislosed to me.)
Help... please... serious help... Please.
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