Agent forgets to pass on water usage charges: whos liable?

Discussion in 'Property Management' started by TMNT, 6th Dec, 2016.

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  1. TMNT

    TMNT Well-Known Member

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    Hypothetical

    if you email the water bills to the agent and the agent either forgets to pass on or claims they never received the email,
    and a certain period has passed and legislation states that the tenant no longer has to pay

    who should be, and who would realistically be resposnbile and make good for the loss?
     
  2. EN710

    EN710 Well-Known Member

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    I'd demand it from the agent. Not sure how enforceable though
     
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  3. Propertunity

    Propertunity Well-Known Member

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    If the agent forgets - the agent is liable.
    If the agent claims he/she never got your email, what procedures do you have in place to follow up? (emails sometimes disappear into cyberspace)?
    What procedures does the agent have in place to followup water bills missing from you?
    Both you & the agent could be found proportionately at fault.
    Most tenants when presented with the water account would pay irrespective of the time period technically having passed, if they plan to stay long term.
     
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  4. TMNT

    TMNT Well-Known Member

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    I agree, howevr if the tenant never receieves a billl, no tenant will ask the agent, when is the water bill coming,
    You could easily provide evidence that you did send it,

    however, ive yet to come across an agent who admits liability to anything, let alone compensate for it

    ultimately I dont be;ieve it should be the ladnlord respisnbility to ask the agent every month "have you billed the tenant" or "has the tenant paid for water"

    recently I had an agent who for some reason let water arrears accumulate for 6 months for almost $1000, due to a system error

    they apologised and said they would follow up, but nothing has happened yet
     
  5. Propertunity

    Propertunity Well-Known Member

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    Aside from taking tenants to Tribunal, as a LL you can also take an agent there for a case.

    An agent can't admit liability under the terms of their PI insurance or business insurance. But that's what they take out cover for. If the claim is less than their excess you might get compensation.

    It's very hard to know if an email was received even though you can prove sending one.
     
  6. TMNT

    TMNT Well-Known Member

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    I think all agents should compulsory have a an automated follow up system where as after a certain time, where if hte water bill isnt received, an email is sent out
     
  7. EN710

    EN710 Well-Known Member

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    No .... but unfortunately in reality you'd need to unless the agent has proven themselves reliable... for new agent I usually sent the invoice with request to confirm when bill has been sent to tenant. If no confirmation received I assume it has not been sent and I will keep following up until they confirm in writing --> my manual follow up system against incompetence...
     
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  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You are liable but you have suffered a loss due to the negligence of the agent so they would be liable to compensate you.
     
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  9. Marg4000

    Marg4000 Well-Known Member

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    Equally, an owner should follow up if the water bill is not paid within a reasonable time. Emails don't always go through. I have had a few get lost in cyberspace or be delivered 10 months late in one instance.
    Marg
     
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  10. TMNT

    TMNT Well-Known Member

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    i have a headache thinking of the number of emails id have to send due to my numner of ips !:)
     
  11. EN710

    EN710 Well-Known Member

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    Same agents? List all addies in one :) but if all different agents and all different properties with water bill not followed up ... o_O
     
  12. Ricky Adelaide

    Ricky Adelaide Well-Known Member

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    Personally I think its just another reason to have the water bills sent directly to your agent. Good agents have the water bill scanned so you still get a copy of it at the end of month, and this removes another opportunity for something to go wrong. Personally as an agent I prefer this as it really makes my life also easier by getting all the water bills in at one time from Water SA opposed to water bills coming in via dibs and drabs from owners. While some parts of the business makes sense to case by case something like bills coming in should really be as automated as possible opposed to adding to the list of adhock things that slow down productivity which ends up draining resources.

    As to who is responsible, good property managers should be receipting that they have received your email (even with a quick thank-you) so it is clear they have received it. If this is their not policy, which is consistent with past behavior then the bill is on you in the unlikely event the tenant does not pay. However, if this isn't their normal behavior to receipt your emails I would suggest they should fully or partially fix it up (if the tenant does not) and look at it as a reason to action better processes in their agency. The business they will win from learning from their mistakes will pay itself back ten-fold and certainly leave you feeling like you made the right choice of selecting a good company to work with- everyone makes mistakes, its how big they are and how we handle them that reflects professionalism.
     
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  13. TMNT

    TMNT Well-Known Member

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    only a few duplicates in my case!
     
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  14. TMNT

    TMNT Well-Known Member

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    great post!

    admittedly, I like to have a look at the water bills to estalbish usage pattern, as well as using my credit card for points
     
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  15. Ricky Adelaide

    Ricky Adelaide Well-Known Member

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    its taken a few years to to get prospective from both the landlords(myself a landlord) and as a "property manager" perspective but i think its always a case of looking at the situation and working out what is responsible from agent point of view vs my own position.

    i think after a few years that looking at this kind of situation, if possible, it is better to let all the bills to go straight to the agency. so the issues can have a clear process. this makes it much clearer if there is a issue. I have a number of owners who trust my perspective and not only does it make me feel great to have their trust,it makes me work harder as I want to continue to have their trust. its hard to explain but its as simple as if I look after their property like my own then you cant go wrong.- seems like a odd statement to make but the owners who let me get on with making the same discussions i would make for my properties then They get more from me than the owners who create an almost adversarial relationship.

    if you let the agent have responsibility (i.e you trust them that is) and they make a mistake, it is easy to say, hay that is your fault and act accordingly. however when its not clear its hard and becomes aggravating

    personally I think it better to have all bills go to the agent(as a agent that is). and that way your agent is having the ability to just call/text/email you. making sure its all above board.

    I am lucky enough to have great landlords who know that I want them to succeed and realize that I am a small business owner who needs them to buy like another 10-20 properties so I can manage them all and retire at young age with them :)
     

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