Mayor calls on residents to report potential property violations amid tenant concerns

The city of Sioux Falls is tracking issues with a property manager and encouraging residents to report concerns at any property citywide.

The message came out last week after residents voiced complaints about two apartment properties owned by Tzadik Management receiving notice that one of its utilities was at risk of being turned off.

“That puts obviously many residents in jeopardy of being without heat,” said Mayor Paul TenHaken, who referenced the management company multiple times in a news conference without naming it.

“We immediately followed up with the property manager and the owner who assured the city they were working to resolve the issue, which they did.”

In this situation, “we’re not able to legally step in until a utility is shut off and a tenant notifies us that their heat is shut off,” TenHaken continued.

“It’s morally and ethically wrong, and quite frankly I’m tired of it.”

The city meets monthly with a representative of the company, he added.

“Any claims the city is ignoring these tenants or these sorts of landlords is just plain false,” he said.

“We expect it to be done properly. You’re managing people’s lives. … We will not tolerate owners and management companies that take advantage of our residents.”

There are fewer than 10 open code-enforcement cases against the management company, compared with 35 to 40 a year ago, he said.

“It doesn’t mean that all these properties are in tip-top shape, believe me,” he said, adding that the situation does show that the code-enforcement process can be effective.

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

Tzadik, which is based in Florida, owns and manages about 2,000 units in Sioux Falls.

TenHaken said he also has been contacted by elected officials in other cities such as Omaha experiencing similar issues.

All property owners are held “to a high standard in Sioux Falls,” he added.