Property Manager use partner’s company

Discussion in 'Property Management' started by Henry_XX, 13th Feb, 2021.

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  1. Henry_XX

    Henry_XX New Member

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    Hi All,

    my property manager has engaged a company to do a couple of maintenance jobs at my investment house. My property manager sent me the invoices sent from this company. I found the price is much more than quoted. The trade man did some extra works without notifying me and without quote and just sent the invoices to me. He charged very expensive for a small work. I talked to my PM. She is on the trade man side and did not help me. Finally I heard the company my PM engaged is her husband company. I am wondering what I need to do in this situation?

    Thanks.
     
  2. ChrisDim

    ChrisDim Well-Known Member

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    That's naughty if not illegal of your PM to use a family member's business. These relationships need to be disclosed up front and you should have a stern word to them about it. What should you do? If you are happy with them in general (and we are not talking about a massive rip off here) and this is the first thing you noticed, have a word to them and keep an eye out for future. If you haven't been happy with them before, and/or you've been ripped off severely with this piece of work, then refuse to pay anything over and above the quote, and start looking for someone else you will have trust with.
     
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  3. Henry_XX

    Henry_XX New Member

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    Thanks ChrisDim

    I searched and looked up the ABN number in the invoices my PM sent. It was surprising to see the status of the ABN number in the invoices is cancelled a couple of years ago. Is is possible the information in the ABN lookup website is not accurate?
     
  4. JoannaK

    JoannaK Well-Known Member

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    What she's done is illegal if she hasn't disclosed it to you first. I would gather up the evidence and confront her boss.

    The Government ABN Lookup site should be accurate.
     
  5. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Its likely that the PM is doing it to multiple owners and its definitely not right, especially if you requested for approval before works is carried out. If she is an employee I would definitely be speaking to the licensee of the agency and if she is the owner then I would be not only going elsewhere but considering contacting Fair Trading.

    The ABR website (ABN Lookup) is linked to government records. It is also possible that the GST registration is cancelled (so they can't charge GST) but the ABN is valid?
     
  6. Russell Peter

    Russell Peter Active Member

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    is the Pm the owner of the property management agency? I have had staff ask this over the years and the answer is always a hard no. any income the Pm makes from you as an owner needs to be disclosed in the management agreement. time to find a new PM.

    also, do you have photos of before and after to make sure the work was needed? if not i would not be paying for the extra work
     
  7. Henry_XX

    Henry_XX New Member

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    The PM is the employee of a real estate agent. The trade man ABN number status is shown in the website as cancelled and not currently registered for GST. I checked the management agreement with the agency. It mentioned the agency will not pay for the company without valid ABN number and insurance.
     
  8. Russell Peter

    Russell Peter Active Member

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    It will be interesting how the principal handles this issue. Not an email I would like to have to respond to. And the reason we have procedures and rules in our office.

    Pms are not allowed to live in any of our rentals. , hire or use friends or family tradesman, adding or changing any bank accounts. Our staff are key in running a business correctly and we trust them.Our rules and processes are in place so I never have to deal with issues like this.
    Happy to chat if needed
     
    Last edited: 14th Feb, 2021
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  9. MyPropertyPro

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

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    This is an easy one if you haven't authorised for the money to be paid out of rent. Find another property manager and start the process to change and then pay the invoice of the amount you were quoted on the day you have your new PM provide them with notification to terminate, then lodge a complaint with Qld OFT detailing the whole problem.

    They will then have to deal with packing up your file and moving the management, chasing you for money they believe you owe that you don't, and answering the whole case to the OFT at the same time.

    I personally would not stand for this in any way shape or form. Absolutely infuriating.

    - Andrew
     
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