Dishwasher Replacement - Who's liable?

Discussion in 'Property Management' started by Television, 7th Mar, 2018.

Join Australia's most dynamic and respected property investment community
  1. Television

    Television Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    55
    Location:
    Inner-West Side, Sydney
    G'day All,

    Settled on a new property in QLD in Jan this year.

    Just received my rental statement from my PM for next fortnight and they've held back the full rent amount.

    When I've asked why, they've advised that an invoice for the dishwasher has been received.

    At the time of inspection I didn't think to check the dishwasher and tenant wasn't home for me to ask them if they had any complaints about the house, so it could well have been defective then.

    With that being said, I've never authorised a replacement or repair (so believe it must have been ordered by the previous owner).

    On that basis, as I did not direct the works to happen, I'm going to ask them to pay me the full rent amount and seek costs from the previous owner (who I imagine did request the work to occur).

    To take it to an extreme example, if the previous owner had agreed to put in an inground pool and works had started, the PM couldn't expect me to foot the bill for this - so I don't see why I should be liable for this either. No fixtures were excluded in contract of sale.

    Anyone been in a similar situation?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,685
    Location:
    Perth WA + Buderim Qld
    It depends what's in your contract - do they have approval to spend up to 'x' on repairs without authorisation? They may have organised it without needing approval.
     
    Dean Collins likes this.
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    You inherited the same PM as the previous owner? Really?
     
  4. Television

    Television Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    55
    Location:
    Inner-West Side, Sydney
    It seems I did. What's your concern with that approach?
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    Replacement without diagnosis and communication ?
     
    Rich2011 and KayTea like this.
  6. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Well possibly a conflict of interest. Which potentially seems to be playing out right now.
     
  7. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Did the property managers do the rent settlement? Should have taken outstanding invoices into consideration.
     
    Tom Rivera and KayTea like this.
  8. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    yep, happens and has happened to me so many times over the years,

    all they simply say is "I considered it an emergency"

    yes you could change agencies, but I wouldnt hold my breath the next one is much better
     
    HUGH72 and See Change like this.
  9. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,421
    Location:
    Qld
    I doubt a broken dishwasher could be considered an emergency!
    Unless it was plumbed in, no isolation tap and the connecting hose broke? And then it is a plumbing issue and not a replacement.
    Marg
     
    Ted Varrick, KayTea and Joynz like this.
  10. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    When did it happen, while you owned it or prior?
     
  11. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    Youre obviously not tribunal member!

    I reckon they would consider daylight savings an emergency
     
  12. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    I consider this to be only a small conflict of interest.

    The agent may be doing a good job and it would be cruel to take away business
     
    See Change likes this.
  13. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Yes normally I would agree its normally a pretty small issue.

    Except in this case it could be related to why the PM appears to be trying to pin charges to the OP that might be from the former owner.

    So its actually potentially the issue.
     
  14. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    Theres a fairly concrete list on what things constitute emergency action.
     
    Tom Rivera likes this.
  15. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    Ive yet to see this list but ive seen heaps of stuff other pms have agreed its not an emergency
     
  16. Television

    Television Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    55
    Location:
    Inner-West Side, Sydney
    G'day all,

    PMs comment verbatim was:

    Looking at your file it looks like the invoice for the dishwasher has been received and entered into our system for payment ($750).

    Was this cost meant to be paid by previous owner? If so, Do you have any written confirmation?

    To me, this seems to indicate it has been known about for a while and their reference to previous owner makes me think it was something they requested (as all I asked was "mind explaining why full rent was held"? - had to ask as no invoice or explanation was provided with the rental statement.
     
  17. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    What kind of ridiculous response from them is that?

    You should be asking them, and they should be telling you:

    1. What was the issue with the dishwasher?
    2. When the issue was reported to the PM?
    3. Who authorised the repair work?
    4. Who authorised payment of the invoice?

    ...just as a starting point.
     
    Dean Collins likes this.
  18. JDM

    JDM Well-Known Member

    Joined:
    19th Jan, 2016
    Posts:
    465
    Location:
    Brisbane
    Chances of getting the previous owner to pay are remote. It is unlikely they are legally responsible either.

    What if your PM's spending authority in their agency appointment without requiring your approval?
     
  19. Television

    Television Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    55
    Location:
    Inner-West Side, Sydney
    G'day Joel,

    I'm still trying to get all the facts - PM has been missing my calls since they sent the email which is a bit frustrating.

    Regarding getting them to pay or their legal responsibility - if they authorised the property manager to act on their behalf - why would I be legally responsible for the costs?

    I'm a bit ashamed to say I don't have a formal PM agreement in place. Property settled when I was overseas, got back start of Feb and between starting a new company and moving house it was one item on the to-do list that I hadn't gotten to.
     
  20. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia

    Is the agent entitled to take commission if they don't have an agency agreement with you? It's a breach of the act in NSW. On what terms are they emptying your pockets and remitting rent?

    If the d/w was broken before settlement and your due diligence didn't test all appliances, fixtures & fittings, then you can't point tge finger at the vendor.
     
    qak likes this.