Sioux Falls property management company under investigation

SIOUX FALLS, SD (Dakota News Now) – Complaints from homeowners, tenants and HOA members about lost rent payments, unpaid utility bills and other concerns about a property management company are on the rise.

The company, JL Property Management, LLC, also had its accreditation suspended from the Better Business Bureau pending investigation.

It was garbage day for the residents of Whispering Ridge South. There is rumbling behind closed doors as cans dot the edges of driveways in what appears to be a quiet neighborhood south of Sioux Falls.

“It’s a quote, unquote emergency board meeting,” Michial Mularoni said.

Mularoni is an HOA member who discovered evidence of potential misuse of funds with JL Property Management. Mularoni credits the HOA board for being careful.

“They became aware of the situation pretty early and shut it down as soon as they found out what was going on,” Mularoni said.

Calls and messages came into the Dakota News Now newsroom from concerned tenants, homeowners, property owners and HOA members.

“You know, it’s a property management company made up of many people, and it looks like there’s only one bad actor involved,” Mularoni said.

Tenants say that they paid their rent but could not receive the loan into their accounts. HOA members are noticing their utility bills are not being paid.

“Our sanitary services or lawn care are also important. “It’s our road maintenance, our sidewalks and things like that that are not managed by the city,” Mularoni said.

JIL Property Management is approximately two years old, according to Secretary of State records. Authorized signatures are signed by Josh Utterback.

Dakota News Now reached out to Utterback, who has not responded at this time.

JL Property spokesman Larry Leutke said: “JL Property Nanagement, LLC recently became aware of irregular activities by a previous member of the company. We notified the appropriate authorities.”

Sioux Falls Police continue to gather details. Officer Sam Clemens admitted: “There is an open investigation. “There are no charges or arrests at this time,” he said.

One HOA president told us their 21-unit group is facing nearly $100,000 in lost funding, and the dollar amount will likely increase as awareness grows.

“You trust companies and there is a feeling that this has been violated. But at the same time, I think we will be okay, we will be okay,” Mularoni said.

Luetke said the company’s last day of operation is Thursday and that he has personally contacted the water department and other utilities to prevent any properties from being disconnected.

Meanwhile, HOAs have found that some utility companies will not pass on the bill unless they are individuals or businesses. HOA is neither.

If you have any tips or information that police need to know during the investigation, you can contact police at the non-emergency line at 605-367-7212.

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