Fraud and embezzlement

Discussion in 'Property Management' started by Xenia, 20th Dec, 2016.

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  1. EN710

    EN710 Well-Known Member

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    Anyone would! Good thing he's in good hand now... Do you think he has chance of getting that $58K back at all?
     
  2. Xenia

    Xenia Well-Known Member

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    Also to top it off, the addresses were wrong on some of the properties, what was recorded on the lease is different to the actual address. That means it would fall under implied tenancy for the purpose of legal action against tenants.

    They are now on correct leases and bonds paid because we've had to redo them all.

    There were no bonds lodged for any of the properties - I was not surprised!

    The landlord also had no insurance, he has now but only going forward for the new leases.

    Absolute disaster.
     
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  3. Xenia

    Xenia Well-Known Member

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    Yes he has - suing agent directly
     
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  4. Perthguy

    Perthguy Well-Known Member

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    Unbelievable! I wonder how many other people are involved and how the "agent" got away with this for so long?

    The landlord must be relieved that finally someone is sorting this out though.
     
  5. 733

    733 Well-Known Member

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    That sounds like all the files were a huge mess!
     
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  6. skater

    skater Well-Known Member

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    We had similar, with them collecting everything in cash, but they issued no receipts, so there was no proof of payment. Several properties involved, too. We weren't able to get anything back, and just had to accept the tenants words that they were up to date. It was a very stressful time.
     
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  7. WattleIdo

    WattleIdo midas touch

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    This happened in Parkes when I first moved here. Fortunately everything was digital for me but a drag going through it all several times and getting nowhere. I feel sorry for the many tenants who pay in cash.
    Then one of the agents from the original nightmare set up her own agency, and employed a friend who stole and lost records while she was getting treatment for cancer. The thief friend is in gaol and she has a clerical job somewhere in Forbes now.
    There is plenty of business here for an honest and organised property manager. Thinking of doing it myself even.
     
  8. Paul@PAS

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

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  9. jim1964

    jim1964 1941

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    I thought the same thing,how could you not query not getting any money for that length of time,if the rent was a week late i would be on thephone, wouldnt i @Xenia ((((:):::::
     
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  10. jim1964

    jim1964 1941

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    As most would know, Xenia looks after 2 properties for me, Christies Beach and Christie Downs.
    1)The Christie Downs property was managed by Judy Harrow Rentals for 2.5 years,no real dramas, until one of the tenant went to jail, then the issues started,BIG ISSUES,the agency didnt/couldnt/wouldnt manage the problems at hand,not paying rent,major cosmetic damage etc etc etc.I relieved Judy of her management responsibilities and turned to Xenia to sort the mess out,it has taken awhile, but all is ontrack now.

    2) The Christies Beach property was managed by Professionals Christies Beach, credit where credit is due, they were good at what they do,no issues whatso ever.We decided to simplify things with just the 1 property manager for our Southern properties,and appointed Alexa to manage this one as well,apparently the tenant didn't like the thought of a new property manager,and moved from the property,leaving half a truck of furniture behind, plus a fridge full of food, had the power cut, and was gone,this was a few days prior to Xenia taking over the management, so a fortnight later, with no rent paid in,we discovered the above.Now everything hads settled down and on track again.

    I agree, not too many managers would take on the hard ones, especially the way Christie Downs was handed over.Well done @Xenia
     
  11. Xenia

    Xenia Well-Known Member

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    You would kick their butts - I know, I know!!!
     
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  12. ozwanderlust

    ozwanderlust Well-Known Member

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    A related issue here - currently PM being investigated by OFT for a few months, no license, trust account frozen. OFT controlled trust account and disbursed monthly rent in arrears. In a real dilemma - OFT said no real timeframe for resolution, so may consider to replace PM with a licensed one. PM is still "managing" the properties. As PM is a member of this forum so I don't want to say too much. They have not cheated us but slow in their account keeping. Any recommendation for a new PM in Brisbane areas?
     
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    Unfortunately you're not the only one, I've come to learn of quite a few others (mutual clients etc). It saddens me and is a real kick in the face for those of us trying to improve the standard of the industry.

    Talk to @Andrew Hancock , he's been taking over and fixing up the other ones in the same predicament.
     
    Last edited by a moderator: 14th May, 2018
  14. neK

    neK Well-Known Member

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    Good PMs are hard to come buy. Plenty of crappy PMs though.

    I remember a guy coming into my office years ago wanting to access his super early to pay his rent as he was in arrears and the PM was taking him to tribunal.

    After talking to him for 15mins or so, I had a gut feeling it was the PM that stuffed up. Called the PM and got hold of the rental ledger, tracked all the rent from inception and called the agent up and told them they owe the tenant money.

    Had the typical rude response telling me I was wrong and they were going to take this beyond tribunal etc. With the tenants permission I walked over to the agents office and dropped my analysis over to them (had them confirm in writings the received my report).

    Few days later, tenant drops by to say thanks and lets me know the PM called and said they were ahead and apologized to them.

    My take from this, ALWAYS review the ledger on a regular basis to check of inconsistencies - tenant or owner. It is amazing how many people are incapable of keying data into software.
     
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  15. ozwanderlust

    ozwanderlust Well-Known Member

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    Thanks D.T. for your recommendation - much appreciated it. I have checked out mypropertypro. Not wanting to offend anyone. We want a hands on PM who manages our properties and communicates with us promptly (not making a lot of promises). We are not after investment advice from PM.
     
    Last edited by a moderator: 14th May, 2018
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  16. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    A good reason to insist on receiving rent distributions as frequently as possible (eg mid month and end of month). This offers at least an early warning system if something seems to be wrong and gives the landlord the option to jump out of that agency before more damage is done.
     
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  17. Xenia

    Xenia Well-Known Member

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    True
    Properly managed properties should not need this.
     
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  18. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Just for clarity, the investment advice we provide is a separate service provision to PM and is not ubiquitous throughout all offered products and services.

    All the best with your search! :)
     
    Last edited: 13th May, 2017
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  19. Tanya1335

    Tanya1335 Well-Known Member

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    How do PM agencies get away with this practice for so long, our trust account is audited on a regular basis and reports sent to Dept of Fair Trading (as per legislation), if these reports are late there is a fine involved
     
  20. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Wondering the same thing as licences are checked during a trust account audit too. A possibility is that they never reported to the OFT that they had a trust account in the first place and therefore the OFT would have had no knowledge of it and no audits would have ever taken place. The fact there is no licence is baffling and points to no trust account audits having ever taken place and there is only one way that (never) happened.
     
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