Agents slip their friends into IP

So my statement comes through, I notice new names, previous tenant has left at lease end, new tenants, no notice to me, an absent landlord stuck outside Australia.

I later discover tenants friends of agent.
Pretty rude I thought. Happened a year ago but renewal time now, house in Byron Bay so tight rental market obviously agent doing a favour for a friend rather than the owner.
I thought new tenants always had to be ok'd by the owner?

 

What statement did the new tenants names appear on?

(I only ever see the tenants names on the lease and the email or call I get from the agent summarising the best applicants.)

From the post, it sounds like you just discovered this issue after they had been there for a year?

What did the agent say to explain the situation?

 

Isn't everybody in Byron related?

 

Rude.

But maybe a least worst option whilst u r overseas.

I think a simple note to property manager to ask to be informed. A year ago was a tricky time if I remember...prediction of 30% losses.

 

Why did the old tenant move out? This question could open up a can of worms.

 

Tenants names are on every monthly statement emailed. One two years ago (not last year mistake on my part) had new lease prep added and I noticed the new tenants. So I've known a while. Same rent, though about 20-30% under market now. Gave them a discount and didn't increase last year because of covid.

Actual agent doesn't know them, another person at the agency I found out later put them in without property advertised or me advised.

Not a huge issue but has cost me because I tend to only increase rents between tenants rather than every year on existing tenants, and I missed that opportunity.

 

It was a share house before I was told they went their separate ways. Now a family lives there. I hope the previous tenants were not kicked out at end of lease but I will never know.

 

It's already a bit weird and probably not-okay that they re-leased the place without getting your express instructions (unless you have standing orders for them to do that?)

I think it goes into professional misconduct territory if there is then a conflict of interest in leasing it to a friend of someone at the agency.

 

If the surname is hemswoth you'll be fine.

PM's can be slack when looking after non locals. Just switched managers of one property to consolidate management only to find out there's 4 cats, all carpets soiled, fly screens shredded. Bond claim and insurance claim coming.

Original PM did an inspection 2 months ago describing that the property was being well maintained.

 

There are very few agents who wont discuss vacating and leasing with you, but there are some out there who wont- they tend to feel like they have been engaged to act professionally in your interest so they go about their duties without 'bothering' you. I disagree for a variety of reasons, and the vast majority of Landlords very much like to know about these sorts of things, but you shouldn't immediately think something is suspicious if they're generally not too communicative with you.

It's also not a legal requirement to disclose a prior relationship, but I think this is extremely poor professional conduct not to do so.

The serious issues occurs if you believe they have rented the property below market, don't recommend a reversion to market rent upon renewal and/or allow the tenants not to take satisfactory care of the property.

 

Hope you have done some searches to work out what the current market rate is (how low your rent is) and have given notice of a small but modest increase

 

I'd take them to task over this. It's not on, and you should be notified and can set the new rental at that point. Of course you want it to market when the tenants change over & now you are out of pocket.

 

We've encountered that a few times. All it does is make us switch agencies.