Property manager forgot to charge tenant for water usage.

Discussion in 'Property Management' started by property_geek, 13th Sep, 2019.

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  1. property_geek

    property_geek Well-Known Member

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    While reviewing the end of year statements I noticed the tenants haven't been charged for water usage.

    The RE agency now has new property manager.

    I brought this to new property manager's attention and he confirmed it was previous property manager who for some reason forgot to charge tenant water usage for pretty much whole year.

    He also said, tenants are not liable to pay any bill that's more than 90 days old.

    He has apologies on behalf of previous employee and says there is nothing he can do.

    I now have following options:
    - Suck it up and do nothing.
    - Change rental agency.
    - Ask agency to pay for the loss because of the negligence of their employee.

    I am reluctant to change agency because it's just one off case they made this mistake otherwise they are doing great. Happy with new property manager as well.

    Any advise?
     
  2. Perp

    Perp Well-Known Member

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    How much money's involved? Is that worth your time and inconvenience to pursue them / change agency?
     
  3. property_geek

    property_geek Well-Known Member

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    $800
     
  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Is the state residential tenancy act specific that the arrears cant be recovered ? . If so it may be a issue for the agency being liable. You could initiate a tribunal claim / small claims etc against the agent if they dont pay the claim for your loss. I would be asking them to compensate you for this negligence. It may be easier if you offer to accept a lesser sum as a good will gesture too. eg $500.

    Of course that amount will be assessable.
     
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  5. The Y-man

    The Y-man Moderator Staff Member

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    I think this would never happen in Vic for resi IP...... if the tenant doesn't pay (where they are responsible to pay), the water supply contract is between the tenant and water company, so water company would be after them.

    The Y-man
     
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  6. property_geek

    property_geek Well-Known Member

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    NSW law states that the bill has to be presented to tenant within 90 days.
     
  7. marmot

    marmot Well-Known Member

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    What did they do , have the shower on 24/7
    Thats a lot of water.
     
  8. Terry_w

    Terry_w Well-Known Member Business Member

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    agent's negligence?
     
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  9. MWI

    MWI Well-Known Member

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    Same thing happened to me but I had 6 IPs with them, eventually after me pointing it out to them after 2 unpaid water usage bills (not a whole year), I created my spreadsheet to my agent, was let down on various other issues too, eventually they were able to recover and reimburse me back but not on change over of tenants (no water readings taken), so after about 10 - 12 mistakes and chances on their part I had no choice but to change to a different manager.
    Sometimes we cannot make people good we need to find the good people to deal with to work with. Cost time, money, and worst part working against me too..
    Perhaps you could claim from your insurer or ask them to try to get water usage back?
    The lesson I learned is to be pro-active and sometimes we need to manage our manager too!
     
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  10. The Y-man

    The Y-man Moderator Staff Member

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    Ran a car wash :D ..... and a dog wash .... and a laundromat

    the Y-man
     
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  11. Ace in the Hole

    Ace in the Hole Well-Known Member

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    That's garbage, that there is nothing they can do.
    Did the principal of the agency not employ the property manager?
    Seems to be avoiding responsibility.

    In the past I've had my property manager repay me about 3-4k in one lump sum from their own pocket when water bills were not paid and not recoverable from tenants.
     
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  12. Shazz@

    [email protected] Well-Known Member

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    I had a similar situation- the property manager reimbursed me for not charging the tenants.
     
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  13. wylie

    wylie Moderator Staff Member

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    Not for a whole year.
     
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  14. Hosko

    Hosko Well-Known Member

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    Sometimes you have to manage the managing agency.
    Take option 1 - Put it down to a learning experience and never let this happen again
     
  15. Angel

    Angel Well-Known Member Premium Member

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    Discuss this matter with the owner of the business. It is their responsibility to deal with mistakes their employees have committed. Of course a new employee is going to say there is nothing more he can do. It was not his problem and it is his job to fob you off. Book a meeting with the agency owner/principal.
     
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  16. TMNT

    TMNT Well-Known Member

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    no water for the whole year,
    easily add up to $800
     
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  17. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Agent should pay you out their own pocket.
     
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  18. Pumpkin

    Pumpkin Well-Known Member

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    What did the Tenants say? Are they willing to pay? All or half?
     
  19. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    You can get the tenant to pay at least the last quarter, and maybe negotiate an extra quarter, and then maybe split the rest with the PM. If you are happy with their service, they will want to keep you as your business should be worth more than a few hundred ultimately.
     
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  20. Dan Wood

    Dan Wood Well-Known Member

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    Depends on the property location (state) 90 days in NSW as others have stated.

    The tenant can simply decline, and to be honest I would if I were them .. a whole year and you expect them to cough up the cash?