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Grayhaven, our previous property manager, transferred our rental properties to Homeriver around June 2022. We had a good time with Grayhaven for years and same with Homeriver for some months in managing two properties at Chattanooga, TN. However, some issues noticed to happen specially in the past few months. The departure of the director for the area, we believe, contributed to mishandling the business relationship. Due to disagreement on issues, we decided to discontinue the property management agreement. The last owner's draw deposited to our account was on 6/20/23 for $1550 accompanied by Homeriver's email notification clearly indicating the amount deposited was owner's draw. Nothing was discussed about security deposit and prospective management of the property at this day or before regarding the house still occupied by a tenant, the other one being vacated.
On 6/27/23, I wrote an email thanking Homeriver for depositing the above owner's draw for the house that was vacated mid May but its lease ended on May 31st. On this same email, I told them that we would not continue with them(I had emotionally told them also on 6/5/23 in response to their very unreasonable email). I confirmed my previous statement to leave and informed them to release the tenant's security deposit and the owner's minimum portfolio amount of about $500 they withheld. They didn't respond to my email.
Around July 4, I asked the tenant of one of the properties if she had received her security deposit since I emailed on 6/27/23 an instruction to release. She told me that she didn't hear anything about it. She asked them by email on July 5. They told her a security deposit in the amount of $3100 was transferred to owner on 6/5/23. She forwarded that email to me. That was completely misinformation. No amount of that size was transferred in the month and no deposit was made on that date. I proved that was wrong information with documentation. Then they asked for time to review if the security deposit was actually $3100 to begin with. They came back at another day and said actually the security deposit was $1550 and was transferred to owner on 6/20/23.
Owner rejected this retrospective claim for the following reasons:
1. The email notification accompanied the deposit of $1550 on 6/20/23 clearly stated it was owner draw.
2. There was rent collected from the vacated house that we expected to be deposited to our account at this point in time.
3. No discussion was made as to the fate (transfer to another property manager, tenant or owner)of the security deposit until 6/27/23 when I notified them to release the security deposit and the owner portfolio minimum.
4. Tenant didn't know anything about it until she asked them on July 5, 2023 to get back her deposit.
The owner account ledger for July 2023 posted on owner portal showed a cash balance of $2012.00. Owner doesn't have this much unpaid remaining amount with Homeriver. We believe they have transferred the security deposit to the owner's account via accounting journal entry that we believe is not appropriate. I believe security deposit shouldn't be mixed with owner account.
I requested Homeriver to pay back the security deposit of $1550 to the tenant or else transfer it to owner with proper notification to both tenant and owner. I also requested for paying owner the minimum portfolio amount of about $500 withheld with them.
I sent an email to the headquarter’s email address on 7/11/23 for them to intervene & help solve solve the problem & I called them as well to discuss about it. No reply to the email was received. In response to the call, promise to call back was provided and never called back.
Despite all sorts of evidences presented to them, Homeriver stubbornly refused to release the security deposit and the minimum portfolio amount.
We are kindly requesting your help in resolving the impasse.
Thank you.
Berih Awala
Desired outcome: Refund the security deposit to Tenant and pay the portfolio minimum to owner.
