Ethical conduct in property management is important to avoiding the issues that landlords in Colorado have experienced over recent years. Several real estate investors have been conned out of their rental income by disreputable property managers. Over twenty property managers and estate agents have received state indictments, been instructed to cease operations, or had their licenses revoked since the summer of 2013. Examples of unethical behavior include inadequate record keeping, stealing rental payments from tenants, and running a management company without being licensed.
Fraudulent property managers disappear, after stealing cash from business accounts holding the security deposits and rent payments from tenants. Their exodus saddles landlords with major financial losses. Moreover, investors are left with no documentation to show who is living in their properties. These types of unethical practices thrive, whenever landlords and estate agents lack sufficient knowledge, experience or financial resources.
In Colorado, people who act in the interests of landlords, and receive payment in return for finding tenants and negotiating rental agreements, have to possess a Real Estate Dept. license. Certified estate agents are forbidden from working as self-employed property managers. Instead, they have to work through approved brokers.
All property investors should protect themselves against unethical practices by choosing to work with a fully licensed and reputable property management company. Real Property Management Colorado has 20+ years of experience and we consistently meet our customers’ expectations while saving them time and money. We use our experience and industry expertise ensure your property is compliant with the stringent standards set forth by the Colorado Department of Real Estate and the Better Business Bureau.