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<p class="MsoNormal">Hi Harry.</p>
<p class="MsoNormal">All property manages must be licensed realtors. My first impression is that it must violate the real estate licensing statute.
</p>
<p class="MsoNormal">Leonard P. Cabral, Esq. </p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sent from <a href="https://go.microsoft.com/fwlink/?LinkId=550986">
Mail</a> for Windows 10</p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="border:none;padding:0in"><b>From: </b><a href="mailto:harry@evict.com">Harry Heist</a><br>
<b>Sent: </b>Monday, June 29, 2020 4:51 PM<br>
<b>To: </b><a href="mailto:landten@lists.flabarrpptl.org">'RPPTL Landlord Tenant Committee'</a>;
<a href="mailto:landtencl@lists.flabarrpptl.org">'RPPTL Landlord Tennant Committee'</a><br>
<b>Subject: </b>[RPPTL LandTen] Consumer Lawyer/Insurance regulation lawyer question</p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">Here are 2 more spreading fast.<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">Please take the time to read this when you can as it is becoming very common.
<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1"><span style="font-size:14.0pt"> Tenant is not required to pay a Security Deposit and they are given an optional “method”. Tenant pays a set FEE to the Property magager, more or less
than 1/12 of what would have been the deposit each month as a NONREFUNDABLE FEE and even continues this upon renewals!! Property manager guarantees the property owner an amount equal to what the deposit would have normally been if the tenant damages the place
or owes rent (from property manager’s pocket) and sometimes even an additional month of rent if the tenant defaults.
<b>Property manager pockets the money each month as a FEE. Owner is not even aware of the scheme.
<o:p></o:p></b></span></li></ol>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">No damages, property manager makes out like a bandit.</span></b><span style="font-size:14.0pt"> Is this legal??? The tenant is paying for the privilege/convenience of not having to pay a security deposit
BUT is not using a licensed product.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">THIS IS A FORM OF INSURANCE IS IT NOT?
</span></b><span style="font-size:14.0pt">The tenant though is not being “insured”, but the owner is and the property manager is pocketing a large sum of money.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">This particular scheme preys on people who do not have a security deposit to pay. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">The property manager is arguing with me that this is NOT insurance as the OWNER is not paying the “premium”.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">In this situation, a tenant actually could end up paying far more in nonrefundable FEES than if he had paid a normal security deposit and people are eating this up! <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">Next one:<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<ol style="margin-top:0in" start="2" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1"><span style="font-size:14.0pt">Property manager charges a pet fee or pet rent to tenant. Property manager pockets this pet fee or pet rent. If there is pet damage, property manager
will pay up to $XXX for pet damage. THIS IS CLEARLY AN INSURANCE PRODUCT IS IT NOT? No pet damage, property manager makes out like a bandit. Pet damage? Property manager has a limit as to what they will cover.<o:p></o:p></span></li></ol>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">I am trying to explain why both of these could be insurance, violate the security deposit statute, illegal or an unfair and deceptive trade practice but can’t seem to wrap my head around exactly why.<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">Now, <u>there ARE licensed insurance companies that provide this type of service</u>. Obligo, Rhino, Leaselock and SureDeposit are but a few.<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><u><span style="font-size:14.0pt">THESE above are <b>all done in house</b> and are a HUGE profit center now for some property managers and cost far
<b>more</b> than the licensed products.<o:p></o:p></span></u></p>
<p class="MsoNormal"><u><span style="font-size:14.0pt"><o:p><span style="text-decoration:none"> </span></o:p></span></u></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Any real expects out there before some huge class actions start?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">I am willing to pay for solid advice.
<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Trust me on this. <u>Your single family home managers are beginning to do it and it is increasing their profits dramatically</u>.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">The whole fiduciary duty thing is also disturbing. If a property manager has a choice between accepting a tenant who will pay the standard security deposit OR one who wants to pay a nonrefundable FEE each
month to the property manager, who are they going to pick? <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Harry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif;color:#1F497D">LAW OFFICES OF
<br>
HEIST, WEISSE & WOLK P.A.<br>
PH: 1 800 253 8428<br>
FAX: 1 800 367 9038<br>
"Serving the Property Management Professional"<br>
Website: </span></b><a href="http://www.evict.com/"><b><span style="font-family:"Arial",sans-serif">www.evict.com</span></b></a><b><span style="font-family:"Arial",sans-serif;color:#1F497D">
<br>
Email: </span></b><a href="mailto:harry@evict.com"><b><span style="font-family:"Arial",sans-serif">harry@evict.com</span></b></a><b><span style="font-family:"Arial",sans-serif;color:#1F497D"><o:p></o:p></span></b></p>
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