‘Morally, ethically wrong’: Property issues continue

SIOUX FALLS, S.D. (KELO) – Sioux Falls has over 33,000 rental units and 2,000 are owned by a property management company that’s often in the news.

Over the last few years, we’ve heard of multiple issues from tenants living in apartments owned by the Miami-based Tzadik Management. Even the City of Sioux Falls has stepped in and holds monthly meetings with Tzadik staff. But it seems the issues are ongoing.

Notices posted on three Tzadik properties this week.

On Wednesday, residents at three apartments owned by Tzadik Management saw orange notices on their front doors. They warn that the gas may be shut off on February 3rd because the landlord is behind on payments.

Later that day, residents received a text message from Tzadik Management saying all gas bills are being taken care of and ‘they are not in danger of it being shut off.’

The City of Sioux Falls was made aware of these notices and held a news conference in front of one of the Tzadik apartments Friday morning.

“So as soon as we are made aware of something like that, which we were, we immediately followed up with the property manager and the owner who assured the City they are working to resolve the issue. Which they did,” Mayor Paul TenHaken said.

This isn’t the first time we’ve reported on issues at Tzadik properties. In 2022, KELOLAND Investigates was invited into three properties by tenants. We found insect infestations, security issues and mold — all things we continue to hear about from tenants today.

Proof of rental problems needed to act, officials say

TenHaken says Sioux Falls isn’t alone in its issues with this company.

“I had a call this week with a city councilor from Omaha asking, ‘how are you dealing with some of these challenges in Sioux Falls? We’re having some of the same challenges in Omaha,’ You can Google Dickinson, North Dakota, you can Google Rapid City, South Dakota, and see some of the same issues with this property manager and property owner,” TenHaken said.

Friday, TenHaken didn’t mince words when explaining how he felt about these problems.

“I believe how this specific property management company continues to operate is morally and ethically wrong. And quite frankly, I’m tired of it,” TenHaken said.

TenHaken says the City can’t regulate morals and ethics, but it can ensure compliance on city ordinances.

“We need tenants to continue to reach out the City, when appropriate to report issues,” TenHaken said. “It’s very, very important.”

Kevin Smith with City Planning and Development Services gave some insight on issues the City *can help with when reported.

“There’s common things — broken windows, broken doors, broken locks, leaking pipes, leaking roofs, you know, real property maintenance, property management kinds of issues,” Smith said. “In the winter, we don’t see it today, but in the winter it’s sidewalk snow removal. In the summer, it’s nuisance vegetation, things being overgrown.”

TenHaken says the City holds property managers and owners to a high standard.

“You’re managing peoples’ lives. So we will not tolerate owners, management companies, that take advantage of our residents,” TenHaken said.

The City says it’s important for tenants to bring the issues up to property managers first because there’s a process for code enforcement. However, if they don’t respond in a timely manner, you can file a report to the City. They also note those complaints *have to come from tenants themselves in order for them to investigate.