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A DC property management company is behind on my payments. What can I do to speed things up?

District of ColumbiaMechanics Lien
Anonymous Contractor

This property management company called Atlas Lane in dc got behind on $20,000 in bills. They took around 90 days to pay most of it, but still have not completed payment in full. What can I do? They said that basically go ahead and pursue legal action because it doesn't affect them, just the owners. I read the above and just want to make sure that before I start this process that I am in the clear and I know what I am doing

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 1,005 reviews
Nov 25, 2019
For one, if a customer breaks their contract and fails to make required payments, an unpaid contractor can typically hold that customer accountable via legal claims against them, specifically. Where they were the ones who signed the contract, rather than the owner, a breach of contract claim may be available, among other potential claims.

Leveraging mechanics lien rights can lead to payment

When unpaid for construction work, mechanics liens are some of the most powerful tools around. But, because mechanics liens are so powerful, the mere warning or threat of a lien claim will often be enough to get paid. By sending a document like a Notice of Intent to Lien to both the customer and the property owner, a would-be lien claimant can make their debt known and can show they're serious about getting paid. A Notice of Intent acts as a warning shot - and recipients will know that if payment isn't made and made soon, then a mechanics lien claim will be coming. And, considering the drastic nature of a lien claim, an owner will usually want to do what they can to avoid a lien. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Pursuing a mechanics lien claim

Based on your question, I'm assuming you might have already read this resource: Washington DC Mechanics Lien Guide and FAQs. If not, it's worth taking a look at - on that page, Levelset discusses a lot of the ins-and-outs of mechanics lien claims in the District of Columbia. But, more generally: Those that perform construction work and go unpaid for that work are typically entitled to file a mechanics lien in Washington DC when the work has resulted in the permanent improvement of the property. DC limits the ability to lien to those hired directly by the property owner or by a prime contractor on the job. But, note that if a party is acting as the agent for the owner - parties hired by that agent may well be considered the owner, themselves, for purposes of filing a lien.

Will a mechanics lien affect a property manager?

While a property management company might not think that a mechanics lien claim will implicate them in the debt recovery process, that's not quite accurate. A mechanics lien filing does tie directly to the property title - so, the property owner will likely be the party most concerned and affected by a mechanics lien claim. However, if that owner has retained a property management company to coordinate and pay for construction services, and if the management company has failed to do so, then the owner would likely be able to hold them liable for whatever they might end up paying to the lien claimant/for their defense against a lien.

Bottom line

It's normal to be cautious when considering a mechanics lien. Keep in mind the other options that may force payment without actually filing a mechanics lien - such as a Notice of Intent to Lien. Further, it may also be helpful to consult with a local attorney if you're wary of pursuing a lien claim. They'd be able to review your circumstances and assist along the way. Finally, this guide should be helpful too: How to File a Mechanics Lien – Step by Step Guide For Any State.
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