Is the property manager responsible?

Discussion in 'Legal Issues' started by Sil, 17th Sep, 2021.

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  1. Sil

    Sil Member

    Joined:
    11th Sep, 2020
    Posts:
    5
    Location:
    Cairns
    Hi everyone,

    First off a big thank you for all the valuable information on this forum.

    Last month we took possession back of our rental property.
    Since we had possession last we have had two management companies and three tenants. Tenant A with the first company and tenants B and C with company two.

    Two things (and questions) have taken my attention about the state of the property.

    The first one is that the side fence has been burned and half patched up (a post was burned to breaking point).
    After speaking to a neighbour I learned that it was tenant A who did illegal burning of palm fronts and tried to hide the burned fence by a bad patch up job (it is now a 400$ repair job if I do it myself).
    The real estate agent who took care of the property never took notice of it and told us everything with the property was fine at the end inspection and gave back the keys (to the new rental agent as we lived overseas at the time). Surely, this can't be mine to pay for and the first property management company is responsible for the damages?

    After tenant A had left the second property manager (also the owner of the company I hired) did an inspection and told me there where major mould issues left behind (tropics) and the ceilings needed to be treated and re-painted. He would have his painter take care of it. Good price, professional job.
    Now having taken possession of the property it turns out he has not done the bathroom, the toilet and inside the wardrobes (all places with heavy mould) and where he did paint, he did half a job. Cornices a single coat, big pieces in the living room not painted, etc..
    I emailed the management company about this who replied: that was the previous owner of this company, not our problem (even though they took over the contract, we didn't sign a new contract). You can call the painter. Again, surely this falls under section 11.5 neglect of the property manager (standard RTA contract). As he assured me at the time, all the spaced (including the once I mentioned as I asked specifically) where done and done professionally. The previous owner now works as a sales person within this office.

    I am struggling to find a body who helps landlords with bad and doggy property managers.
    Am I missing something?

    Do I just have to suck up the losses and move on or do I have a case? Both property management companies have done horrible jobs so a bit of a fight I don't mind.

    Much appreciated.

    Sil
     
  2. ff3

    ff3 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    70
    Location:
    NSW
    Whilst the property was being rented out, what did you do to satisfy yourself of the condition of the property? Did you receive photos or a written property report? If you didn't get this did you chase up the PM?

    After this time you're unlikely to make much progress in pinning the blame on someone. Easy enough to blame the other PM, previous tenants etc. I'd say accept it and move on.
     
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  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,377
    Location:
    Qld
    It will cost you far more in $$$, angst and time to take legal action against anyone.

    Fix things properly and move on - obviously with another PM.

    And keep a close eye on things. Inspect yourself at least annually. Limit repairs without referring to you at $100-$200 (obviously excluding deemed essential repairs). Phone and chat after each routine inspection. Insist on a detailed report with photos.
     
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  4. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    5,301
    Location:
    In the Tweed
    Was the burned fence listed by company 2 on the ingoing inspection report for tenant B ?

    Did you request/receive pics of before and after the painting works ?

    As above, it's probably too late for any action now :(

    Chalk it up to being a landlord :confused:
     
    jared7825 likes this.
  5. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    A property manager doesnt guarantee a property without issues. They collect rent and pay bills and assist with new leases etc. Its not a certain process. Its like when you own property. A storm can damage it and murphy's law suggests its usually not a big enough claim for insurance and if it is you are still out of pocket for the excess and hassles. Insurance doesnt mean you wont be out of pocket.

    Lesson 1 with property ownership is you own it. Nobody will look aftre it like you will. Some owners doen't even look after their own property.
     
    Rambo likes this.