If you rent a property through a property manager, you’ve probably either heard horror stories or dealt with them firsthand. Between hidden charges, service requests gone unheeded, or rising rents, everyone’s got a story to tell. Few people read all of the fine print and are a target as a result.
But a recent story is a new one and represents a potential all-time record of pettiness when it comes to property management. Can you imagine getting fined thousands…for a negative review?
Here’s a story that’ll make your blood boil: Adrian Paull and his wife rented a Scottsdale condo that turned out to be a nightmare, and when they did what any frustrated tenant would do – left honest reviews online – they got slapped with a $4,000 fine.
The Paulls thought they were being smart, renting a condo near 96th Street and Via Linda while house hunting. But when they arrived at their new place, they discovered black mold hidden under furniture in the master bedroom. They asked Denali Real Estate to fix it, but the problems kept piling up: holes in walls, missing carpet, exposed carpet tacks. When the property management company ignored their requests for help, Paull did what most of us would do – he posted honest reviews on Yelp and Google.
Instead of fixing the problems, Denali hit back hard. Buried in their 21-page lease was a “non-disparagement” clause that banned any “negative online reviews, negative ratings of 3 out of 5 stars or less and negative posts on all social media.” The penalty? A whopping $2,000 per violation.
Suddenly, Paull’s account went from showing a $2,200 credit to owing $1,800 – reflecting the $4,000 fine for his two reviews.
Here’s the thing…we get it. Running a property management business is tough, there are plenty of bad actors who view landlords as the enemy and are trying to screw you over, and bad reviews (some of which are unwarranted) can hurt. But here’s what Denali apparently didn’t know: this practice is completely illegal under federal law: the Consumer Review Fairness Act of 2016 specifically protects consumers’ right to share honest opinions and makes it illegal for companies to penalize people for reviews. The FTC has already gone after other property management companies for exactly this kind of behavior.
After the story went public, Denali quickly backtracked and removed the non-disparagement clause from their lease. They claimed it was developed by legal counsel and they’re now having it reviewed by law firms. But they haven’t said whether they’ll drop the charges against Paull. Meanwhile, Paull’s condo nightmare continues with water damage and actual animal feces on the floor. The man just wanted a decent place to live while house hunting.
The takeaway? Know your rights. If a company tries to fine you for honest reviews, they’re breaking federal law. And maybe read those lease agreements a little more carefully; apparently, some pretty wild stuff can be hiding in there.