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PM/REA Rorts

Discussion in 'Property Management' started by Skilled_Migrant, 17th Apr, 2016.

  1. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Renters pay their bond in good faith, but what happens when it ends up in the agent's pocket?

    Interesting read for the investors and tenants who rely excessively on the honesty of PMs.

    Tenancy bonds, strata fees, deposit money, rents, false trade invoices are all fair game for the 10% commission.

    When renting, never had a bond returned without VCAT interference. Exploitation is even more widespread when the tenants are students or foreigners.

    There is a database for tenants, why not one for PMs or REAs.
     
  2. Xenia

    Xenia Adelaide Property Manager Business Member

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    Should be automatic loss of license.
     
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  3. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Because the tenancy database is for agents to be able to do their job.

    For an agent database, there is already a suitable counterpart which are the reviews people can give.
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    If you do something wrong as a tenant, you can still find somewhere else to live.
    If you do something wrong as an agent its likely you wouldn't be able to get a job any field.
     
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  5. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Interesting line of reasoning:

    Tenant's homelessness is not as significant or likely as an agent's unemployment.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    I never implied homelessness
     
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  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Agree totally. Anyone engaging in unethical activities should be fined and lose license for life.
     
  8. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    What happens when the tenant goes on the database ?
     
  9. Nick Valsamis

    Nick Valsamis Well-Known Member

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    They go on gumtree and rent from private landlords.
     
  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    or other agents who don't check.
     
  11. Azazel

    Azazel Well-Known Member

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    Agree as well.
    The few dodgy ones reflect poorly on the majority.
     
  12. Jerry O

    Jerry O Well-Known Member Premium Member

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    loss of license is the most appropriate penalty IMHO. Also good practice to set aside a few hours a month to go through your property invoices/statements to double check your PM's work.
     
  13. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    throw in the drivers license as well for 3 months.;)
     
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  14. Jerry O

    Jerry O Well-Known Member Premium Member

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    now that's being a bit too kind there... three months' worth of rent in compensation perhaps?
     
  15. skater

    skater Capitalist Premium Member

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  16. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Databases are not so benign as being made out and homelessness is a real concern with these national databases:
    http://www.qpilch.org.au/_dbase_upl/Parity_Article_June_2015.pdf
    http://www.lawreform.vic.gov.au/sites/default/files/ResidentialTenancyDatabases_FinalReport.pdf
    http://excelrentals.com.au/wp-content/uploads/2011/10/10-Tenancy-Database.pdf

    The databases are privately held and the effected are usually marginalised tenants, unable to ascertain whether they are on the blacklist or how to get off the list.

    If the OP is any guide on what has been done to the landlords, the hardships inflicted on the tenants should be much more. Too much unregulated power to PMs. On a quick glance http://www.austlii.edu.au/au/legis/nsw/consol_act/rta2010207/
    • The tenant is assumed to be guilty based on PMs assessment which only relies on good faith and procedural compliance.
    • The proof of burden is on the tenant.
    • Even if blacklisting is found to be erroneous, hardly any penalties for the PM or compensation for the hardships suffered by the tenant.
    IMHO for the sake of fairness, there should be database for the PMs as well, wherein both the tenants and landlords should be able to blacklist the PMs.

    Happy to be corrected.
     
  17. Nick Valsamis

    Nick Valsamis Well-Known Member

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    There are ways to get around the database as a tenant that has been blacklisted.

    But in reality not many tenants are blacklisted, and if they are then they should be to warn the next landlord of the potential problem.
     
  18. Azazel

    Azazel Well-Known Member

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    That would be a good idea.
    How would we check it?
     
  19. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Same way as a credit report i.e. by a minimal payment for one time use or a periodic subscription.
     
  20. Azazel

    Azazel Well-Known Member

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    Yeah, I would want to be able to check multiple agents at the same time.
    Or brows a list by area.