Property Manager Misinformed Owner About Bad Tenancy History of New Tenant

Discussion in 'Property Management' started by starter, 11th Oct, 2019.

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  1. starter

    starter Active Member

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    Hi All,

    I would like to get your opinion please on the steps I can do in my current situation:

    1. House went into the market mid this year.
    2. Within first two weeks my property manager declined one of the applications due to history of missing payments which I completely agreed on.
    3. 3rd week, property manager called me about an application with a tenant having a good history, relatively small family and the only reason they were looking for the property is that children outgrow their rooms. I was told that the property they left had just 1 cleanliness issue which was rectified before they have left.
    4. So I told my property manager, if you are happy with them, I am okay and lets proceed with the application.
    5. Few days after signing my application, my property manager moved on and I was assigned to a new property manager.
    6. Few weeks later, tradie went to the property for maintenance and told the property manager that the house was really in worst shape and cannot believe what he saw.
    7. Property manager did emergency inspection and even tenant started cleaning up she knew it was in a bad shape and saw more people in there than what was in the agreement.
    8. New Property Manager dig up on the tenant history and I was told that there were consistent cleanliness issue with the tenant, missing payments, and the previous landlord did not allowed them extend the contract and ask to leave. My new property manager cannot believe that I accepted (or even presented to me) this tenant and I mentioned that none of these issues were presented to me.
    9. Now tenants are delayed on repayments and we already breached once and expected to miss again due to lack/inconsistent work.

    What should I do? the property manager says they will try to reimburse the letting fee/marketing cost if tenant gets breached and kickout but I felt that is not enough especially that we cannot just immediately put the property back in the market before this tenant leave. I'm sure this incompetence willm cost me more than just letting/marketing fees.


    Thank you in advance.
     
  2. Dan Wood

    Dan Wood Well-Known Member

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    Ouch, I'd be pushing a lot on the agency if they've fed you incorrect information that leads to damages.

    I hope you've got all this in writing, especially where they stated the tenant was good etc.
     
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  3. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Hi starter, sorry to hear about your situation. Do you take any responsibility for the situation?

    Let's say you did view the application and go through the due diligence checks the Agent did and signed off on it, and the same thing happened, would your feelings be different towards the Agent?
     
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  4. starter

    starter Active Member

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    It's a all through phone call unfortunately. However, I sent email to the new PM mentioning this misinformation and that hasn't been refuted; The new PM agrees that this should not even have presented to me as it won't pass their standard.
     
    Last edited: 11th Oct, 2019
  5. starter

    starter Active Member

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    1. I take responsibility on my action believing that what has presented to me is accurate and correct and that PM is acting in my best interest which is their primary responsibility.

    2. If I did review the application and the history is really good and I signed off, No, I would feel a lot differently. Because I made my decision based on facts and better probability.

    If I did review the application and I knew the bad history and still signed off, No, I would feel a lot differently. It is easier to accept because it is a risk that is well presented to me before taking it.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    Why should he/she?

    I employ (and pay) a PM to do the due diligence and checks before presenting an application to me. I have neither the ability nor the access to do the required checks, and quite properly depend on the PM.

    Since this information has been easily obtained by the new PM, it would have been available to the original PM who clearly was negligent by not making the correct enquires.
     
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  7. TMNT

    TMNT Well-Known Member

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    A lot of people talk about managing your PM

    But why should we!

    Ridiculous, thats what they get paid for
     
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  8. Michael Mitchell

    Michael Mitchell Well-Known Member

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    It's been said a few times on this forum before, someone should always check the checker. When I used a PM to manage my properties I always had final say on the application. Don't get me wrong the PM still did all the work (due diligence checking etc), but I always checked over the completed application with dd and asked questions if need be. If you what you say is correct re: the PM has actually misinformed or done the wrong thing, then yes the PM business should be compensating you for sure!
     
  9. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Dear Starter,
    to protect yourself:
    please tell me you have Landlords insurance?
    I hope this helps
     
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  10. dabbler

    dabbler Well-Known Member

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    Get used to the tricks PMs play, I think it goes like this...car salesmen are worst, then, very closely tied, is RE sales agents and PMs.......

    I think you should be happy and keep quiet as you still have 4 standing walls and a roof !
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    In Qld, they're under the same Act.
     
  12. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Not anymore, 2014 they got seperated
     
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  13. VB King

    VB King Well-Known Member

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    I think the point is, due diligence would have uncovered the history, and the OP not unreasonably relied on the PMs due diligence.
     
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  14. robboat

    robboat Well-Known Member

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    As @dabbler said...
    The joys of a residential landlord....**** happens...people make mistakes/take shortcuts/mislead.
    Ultimately the responsibility is yours....
    Get in there and make sure the new agent is doing their job.
    Get the tenants cleaned up or kicked out.
    Make sure your LL insurance will cover any damages.
    Repair, replace tenants, move on...
     
    Last edited by a moderator: 13th Oct, 2019
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  15. Dan Wood

    Dan Wood Well-Known Member

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    It's sad you have to manage a "manager" though.. they should be the trustworthy person you turn to in any business ...

    Although what I've seen is that they take on more and more properties, they lose the will to live and start acting like a used car sales man and then the lies etc come in, just so they can attempt to meet some ridiculous KPI shove on them at the last minute.
     
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  16. Ted Varrick

    Ted Varrick Well-Known Member

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    As you have said "...my property manager moved on..." maybe you should should find out which agency they have moved on to, assuming they have not moved out of the property management visit, and pay the agency principal a visit, before you decide how to move forward.
     
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  17. dabbler

    dabbler Well-Known Member

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    Yeah, I went with one years ago, and the pattern was the same....

    The person I found good left (surprise, surprise) and the owner hired 2 sniveling little gits that were as rude as all get out, but my fault for not moving to another agency pronto, cost me a pretty penny with the stuff ups and that was after catching many costly jobs they wanted me to do that were absolutely not required.

    They got the young ones so owner could train them to be like them, rude and not caring at all of the clients or clients funds.
     
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  18. starter

    starter Active Member

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    Yes the property has landlord insurrance but I assume there will be a lot of implicit cost of getting bad tenant to move out and fixing the property before getting it ready for the market that wont be covered by LL insurrance.
     
  19. starter

    starter Active Member

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    I get that. I think the intention of this post is probably not being clear to a lot. I understand that Im not the only one who had this situation and not necessarily for ranting and finger pointing on who needs to take responsibility.

    What Im after is personal advise based on experience by other people who were in the same situation on how to resolve it fairly and the best manner possible.
     
  20. starter

    starter Active Member

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    Did you moved agency after that? I dont want to switch agency because then I would live them of the hook in terms of their part of responsibility. Has claiming on the insurrance, valid ones, easy to do and justify?