property manager vacating the tenant without permission

Discussion in 'Property Management' started by _alex_, 21st Jul, 2017.

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  1. _alex_

    _alex_ Active Member

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    Hi all,

    I just had a horrible experience with my property manager.

    Here's what happened:
    • 10 June: tenant notified the property manager of a mould problem
    • Mid June: tenant contacted the property manager demanding to be released. Agent release the tenant without my knowledge
    • 24 June: tenant vacated, and also stopped paying rent
    • 11 July: a mould company provided an inspection report
    • 14 July: 35 days (5 weeks) after the agent first became aware of this issue, I am finally contacted
    I'm now looking at fixing the mould problem and do a small renovation. All up, I expect to lose 6-8 weeks of rent plus letting fee. No insurance coverage as the tenant has been released by the agent (as opposed to walking away).

    To mitigate my loss, the agent offered to waive the letting fee (1 week's rent).

    I'm not happy that:
    1. The agent waited for 5 whole weeks (3 weeks after tenant had left) to contact me.
    2. The agent released the tenant without my knowledge.
    A few other minor things:
    1. Last Friday I asked the agent to contact a specific mould company. Today (7 days later), I rang the mould company and was told the agent never contacted them.
    2. I was told by the property has been cleaned. Today, a builder friend who inspected the place reported the place to be very filthy. The pool has turned green.
    3. Last month's rent hasn't been paid is now overdue
    4. Water bill needs to be deducted from the bond
    I am considering going to Queensland Fair Trading. Any suggestions as to what I should do? Please be specific.

    Thanks!
     
  2. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Hi Alex,
    could I suggest :
    get in touch with Fair Trading NSW,
    they will tell you how to seek recompense.
    'Agents code of Conduct' is the area they will probably guide you to,
    for making a complaint.
    Seems to me you have documented the narrative well.

    also your Landlords Insurance company may also be able to help.
    If they cant help you , ask where you can go for help!

    Who commissioned the 'Mould Company'?
    What happened to 'suddenly' create the mould?
    When was the property last inspected by the agent?



    All the best, and be kind to yourself!
     
  3. _alex_

    _alex_ Active Member

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    Thanks SeafordSunshine. This is a Queensland Property, so I think Queensland fair trading is the right avenue.

    I rang the insurer already. They confirmed no coverage as the tenant did not breach.

    The agent commissioned the mould company.

    I sent a builder there today, who confirmed there was a plumbing issue. I was never notified. The agent claimed that an inspection was done in May, and nothing's reported.
     
  4. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Have you discussed this matter with the licensee in charge..?
    They usually want to keep their license...:eek:
     
  5. +men

    +men Well-Known Member

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    I can feel the pain there. Managing incompetent agent + lost the tenant + repairing cost all at same time, triple whammy. Stay positive, it's part of the investing journey, and most importantly switch your PM asap
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    First complaint should be to the owner of the RE company.

    If a franchise, then to the Head Office.

    Then to the relevant Real Estate authority.

    Fair Trading also an option.
    Marg
     
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  7. Tanya1335

    Tanya1335 Well-Known Member

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    Marg is correct your first point of call is the principal, or head office. Fair trading is always an option, if the current agency does not compensate.

    Whether you switch agents or stay ensure your property is advertised and new tenants found quickly
     
  8. _alex_

    _alex_ Active Member

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    It's a family business. The agent is the son . The principal is his mother. I have written an email to both himself and his mother complaining about it. No response so far.

    In terms of changing the agent, there is a 30 day notice. What's my chance of getting them agreeing to waive the notice period? What's my chance of getting compensation?
     
  9. bread_boy

    bread_boy Well-Known Member

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    Judging from your description of them, I think the chance of getting the 30 day period waived is slim. If you signed under those conditions than they can play it out per the contract.
    I've transferred PM 3 times for 2 different properties:
    • 1st instance was due to PM underperformance - negotiated with Principal from 30 to 7 days. Was tough but they eventually caved as my property was advertised for 9 weeks and empty for 5. Established brand in the industry.
    • 2nd instance was due to PM lack of communication - Principal usually waived transfer periods but my property was an easy manage so they played out the string. Had good tenants that paid on time so they didn't budge. Boutique/independant firm.
    • 3rd instance (same property as 2nd instance) was due to an OFT audit conducted for non-compliance - instant transfer as PM was in breach of legislation. Boutique/independant firm.
    Opening a case with OFT will take that long (if not longer) anyways so even if you get a ruling in your favour, the 30 day period would've probably lapsed by then.
    In regards to compensation - Seek legal advice however to proceed after inital consultation I would assume this will cost more money + more of your time.

    Most essential thing to do now would be swap to a competent PM. Plenty on this forum to choose from.
    Personally I would pick one that provides an online portal for you to track what goes in/out of your property which updates in real time. Helps you oversee and identify potential issues with your asset as ensures you only call/email the PM when you need too.

    Saves valuable time for both you and the PM.
     
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  10. _alex_

    _alex_ Active Member

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    Thanks bread_boy.

    I am considering 3 options. Which one do you think is the best?

    1. Stay. Wait for them to find a new tenant , give notice, switch
    2. Request 30 day notice to he waived, otherwise go to fair trading
    3. Request 30 day notice to he waived, and ask for compensation, otherwise go to fair trading
     
  11. bread_boy

    bread_boy Well-Known Member

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    Personally, I would do the following:
    1. Look for new PM
    2. Get letting fee (if not more) waiver processed/in writing.
    3. Find new PM and sign transfer. Demand transfer period is reduced/waived - threaten OFT action if not granted. Here is a link to a thread that shows what the OFT can do to a PM business if not compliant (although this was more due to licensing/book-keeping) SE QLD PM under administration
    Attempt to complete repairs somewhere between points 1 & 3 depending if you can be onsite to oversee. If you need PM's co-ordination you will have to wait until transfer is complete.

    Also, seek legal/OFT advice regardless to see what your rights are and then choose if it's worthwhile to pursue.

    Which part of QLD? I have 4 properties spread across BCC, LCC, MBCC and have experience with 7 different PM's.
    PM me if you need more info.
     
    Last edited: 23rd Jul, 2017
  12. _alex_

    _alex_ Active Member

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    Is it worth asking for compensation for some of the lost rent from them? Say the rent covering the 3 weeks from they released the tenant to the date they notified me.
     
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  13. wylie

    wylie Moderator Staff Member

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    I've read on here several times that often a new PM will take over and waive the first month, rather than have you pay two agents. Perhaps it is worth asking if this is possible.

    Regardless of the agent being the son of the owner, I'd still be pushing for them to make financial amends. If they refuse to help fix their stuff up, you might want to look at putting up an online complaint and/or review.

    I once was ripped off badly by a dishwasher repair company. They refused to come to the party until I put up a bad (but truthful) online review. They contacted me and met me half way.

    And if they have done something they can be in trouble for with OFT, then report them anyway.
     
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  14. Tanya1335

    Tanya1335 Well-Known Member

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    It is certainly worth asking the question
     
  15. _alex_

    _alex_ Active Member

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    My builder just reported that there is significant plumbing problem with the house. This was not found during the building inspection. Is there any chance getting compensation from seller? Seller's agent? Building inspection person?
     
  16. bread_boy

    bread_boy Well-Known Member

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    Buyer Beware so not likely
     
  17. _alex_

    _alex_ Active Member

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    Is there anyone who's able to negotiate a compensation for me from the property manager? I can pay a percentage in return.
     
  18. SeafordSunshine

    SeafordSunshine Well-Known Member

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    OUCH!:confused:
    Perhaps ask another builder for a second opinion if you can. ?
    a few more thoughts
    How long has problem been like this?
    How long was the tenant there for before they noticed?
    Ask to see copies of the correspondence between the tenant and the Agent regarding this matter.
    I am smelling that the Property Manager was 'mates with the tenants' and didn't keep things businesslike??? ( otherwise know as a rat???)
    What solutions do they propose to rectify the problem?
    My builder just reported that there is significant plumbing problem with the house. This was not found during the building inspection. Is there any chance getting compensation from seller? Seller's agent? Building inspection person?
     
  19. _alex_

    _alex_ Active Member

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    Here's the quote I got. Cost is about 15K. It's a 5 bedroom house. What do people think?

    · Repair all plumbing that is leaking and incorrectly plumbed - this is the main cause of the mould
    · New taps kitchen and bathrooms - need to get rid of the smells
    · Replace the vanity in the main bathroom and install - vanity polluted by the mould
    · Replace carpet to lounge area and 5 bedrooms - stains on a number of carpets, was told changing the colour from cream to charcoal grey would help with the rent
    · Repaint the entire house internally walls, ceilings, trims and skirts - was told changing the color to white would help with the rent, was also told this job could have mould treamtment included (by a painter, not mould specialist)
    · Remove, replace and install all window furnishings

    DESCRIPTION
    PRICE
    Plumbing
    $987.00
    Taps
    $667.00
    Vanity & installation
    $603.00
    Carpet
    $2790.00
    Painting
    $5,000.00
    Window furnishing and install
    $2,664.00
    Project Management
    $700.00
     
  20. Simon L

    Simon L Well-Known Member

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    I have had success in the past obtaining compensation from a building and pest company for failing to disclose a very obvious fault of the property which ended up costing me some money to rectify.
    It will depend on the inspectors terms and conditions on the report, the description and findings on the actual part of the property at fault, and the actual fault itself.
    It did not go very far in the sense that a nicely worded letter from my solicitor and evidence of the problem + report before the inspector admitted fault. Believe it or not, they are under scrutiny quite often and its usually their insurance company that pays - not them