Tenants disputing bond claims

Discussion in 'Property Management' started by mun5, 7th Sep, 2017.

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  1. mun5

    mun5 Well-Known Member

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    Hi

    I wonder why there aren't more tenants bringing bond disputes to the tribunal. AFAIK, there's only a small fee ($<100) for taking a dispute to the tribunal. It's a small fee to pay even if the disputed amount was several hundred dollars. Wouldn't it make sense for tenants to dispute any bond claim?
     
  2. thatbum

    thatbum Well-Known Member

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    AFAIK there are lots of tenants that dispute bond claims. One of my former jobs I heard from literally thousands of them, just in WA.
     
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  3. Phar Lap

    Phar Lap Well-Known Member

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    Could it do with the fact the bond claim is actually valid and they don't have a leg to stand on?

    We try to have the tenant be able to have their bond back in full as that helps them when applying for another property down the track.
    But if there is damage/excess wear and tear etc then I bill them separately for that and thus far they have all been good and paid. Then full refund of bond, all good everyone happy. Moving on.... Work together not against each other.
     
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  4. Ben Chifley

    Ben Chifley Well-Known Member

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    I took my landlord to VCAT when I left a private rental in Victoria a few years ago; the landlord was a retired lawyer and he emailed and wrote to me several times trying to intimidate me out of going to VCAT saying he was going to sue me for any amount above the cost of the bond that I was found responsible for in addition to his own costs in "going to court" (it's not actually civil court, I don't think he understood that).

    When they eventually heard the case they struck out about 90% of the things he was asking for because they were patently due to either poor maintenance on the part of the landlord (the roof was leaking in one of the bedrooms yet somehow that was my fault) or the fact that it was just an old house (the carpet was 30 years old); I was really happy with the outcome and it was certainly worth doing.
     
    Last edited: 7th Sep, 2017
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I have always found the tribunal/s open to facts as long as its supported. If you feel aggrieved they do listen. If you go there to extract revenge or retribution without proof just because you feel justified then dont expect success.
     
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  6. Tom Rivera

    Tom Rivera Property Manager Business Member

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    My understanding is that most tenants will take bond disputes to tribunal if they feel that it's unfair.
     
  7. Ted Varrick

    Ted Varrick Well-Known Member

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    That's funny (and not in an amusing way) as my experience was diametrically opposed to your view.

    Tribunal is basically a chocolate wheel.
     
  8. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Property Managers will almost unanimously agree that their tribunal experiences are extremely heavily weighted in the tenants favor. I was heading to tribunal fairly often a few years back when I took over an old portfolio and I was often complimented for preparation.... then had my case thrown out the window... or worse, faced with overwhelming evidence against the tenants- they would come to a compromise!!!!

    The most ridiculous case I've experienced had one tenant write down "debts" on a napkin for an Adjudicator. These debts were apparently private loans with friends and family. I had substantiated that her position had changed in no way since she was shown to be able to adequately service the rent three months prior during application. All we sought were break lease costs and were more than happy to make any payment plan that was necessary. I was told that my information was of no relevance and she was released from the lease immediately at no penalty!

    Some adjudicators are worse than others. VCAT in Victoria is most infamous for shocking verdicts, followed by NCAT in NSW. QCAT up here in QLD isn't so bad by comparison.
     
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  9. Ed Barton

    Ed Barton Well-Known Member

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    My family has had some disastrous decisions from QCAT. Like ignoring joint and severable liability of tenants. It's like the work experience kid is running things.

    I've found an agent with a Harley and a baseball bat gets better results.
     
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  10. Tom Rivera

    Tom Rivera Property Manager Business Member

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    You're preaching the the converted here, QCAT is a disaster, but wait till you hear some of the stories from NCAT and VCAT, it actually gets worse!

    Funny you mention the work experience kid, because they started a program a couple of years back where JP's sit as pairs in place of an Adjudicator (to relieve chronic delays in cases being heard). The JP's have absolutely no clue on the legislation and make even worse decisions than before- and they sure don't like being corrected...!
     
  11. pwnitat0r

    pwnitat0r Well-Known Member

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    In my experience, most of the claims PMs make are absolute bogus. Every time I have gone to tribunal as a tenant I've won.

    E.g. One PM claimed I burnt the kitchen benchtop and wanted $900 to replace it it. I had a photo that was time stamped before I moved in showing the burnt benchtop.

    Too many PMs see it as a way to get the tenant to pay for the landlord's repairs
     
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  12. Lil Skater

    Lil Skater Well-Known Member

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    In Victoria we only have 10 business days' to claim the bond, if there's a dispute that is going to carry on longer than this it's normally the PM taking the tenant to VCAT. The tenant can dispute the claim on the day, and often they will come out better for doing it as VCAT is quite tenant orientated, plus it doesn't actually cost anything to go to VCAT for a bond claim - so why would the tenant do the paperwork, when they could just wait for the PM?

    I also disagree that most PM claims are bogus, I very rarely go to VCAT - but I've never taken a tenant for something stupid. VCAT members remember stupid PMs and they will come down harder on PMs that are constantly at VCAT for frivolous claims, making it harder to get a serious claim across the line. A good PM should be able to find an equal playing field, their systems and record keeping should be able to keep most disputes out of VCAT - plus they shouldn't be afraid to tell a client if they're being unreasonable if that is the case.