Tenants threatening extortion, should i pay?

What is the best way to handle this situation with tenants taking advantage and tryingto 'extort' money. They are demanding one month's free rent or they will `go to consumer affairs` for the following which the property manager emailed me ..

The reason for us to ask the compensation worth of month rent is because since he arrived to the apartment our last month is being an unliveable space, Work that has been half done , Entry without permission, Leaving gas on in the house for us to come to , Power point that couldn't use the power we had in the place before , Air con installation that was taking for over 2 months and way too much of our time .

This is what actually happened

1. Work that has been half done.

Nothing was ever half done. I offered to patch some holes in the ceiling after 2 ceiling fans were installed so had to make a return trip to sand back the plaster after it dried.

2. Entry without permission.

The property manager was notified that I was coming with an electrician who wanted to inspect so she could quote on some work to be done. We were there for 10-15 mins.

3. Leaving gas on in the house for us to come to.

They claim I left all 4 of the gas stove cooktop burners on while I replaced a rangehood. Not true and something which I think is impossible to do without noticing.

4. Power point that couldn't use the power we had in the place before.

Electrician replaced switchboard and circuit breakers but didn't check to see if everything was ok afterwards so I paid him again to come back and troubleshoot.

5. Air con installation that was taking for over 2 months and way too much of our time.

I offered to install a split system air con and ceiling fans in bedroom and living room (total cost about $3,700) in return for rent increase of $15pw which they accepted. However I couldn't find an air con installer so the unit I had delivered sat on their floor for about 6 weeks. Not sure how it took any of their time.

I also installed LED lights in the kitchen and bathroom plus replaced the rangehood so they can save on power bills and like to little things which improve their home. I'm pretty shocked about their threats because I saw and spoke to both tenants 2 days earlier and they were both in good spirits about the improvements and none of them mentioned the above.

So what should I do with this demand for over $1,400 of free rent when I'm just trying to improve their home? I offered $300 but thinking what for.. geez they've squeezed enough already.

I suspect the property manager is friends with the tenants and in cahoots with them because she mentioned a few times that I should compensate them and her agency is close to the cafe the tenants run.

She's the first 'property manager' I've had in over 20 years who "forgot" to notify and give the tenants 60 days notice to increase the rent after we arranged $15pw increase for a split system and 2 ceiling fans so they scored extra 2 months rent at the previous amount.

This is also the first time in over 20 years I've had cold and calculating tenants try take advantage for making their home more comfortable to live in.


** Can anyone recommend a property manager inner Melbourne who they've actually used and had good experience with??
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Please move to property management forum

 

So who do you actually think is in the wrong - the tenants or your PM? If its your PM then you should be compensating or at least acknowledging fault to your tenants.

I'm not saying what they're seeking is a fair amount (and it needs assessment), but your PM represents you from the tenant's point of view, so it doesn't matter whether its your PM or you who is at fault.

Lastly... you took 6 weeks to find someone to install an air conditioner? Did you accept the rent increase for that 6 weeks? Even if you didn't, I'd be annoyed too just for the fact that it was sitting there the whole time.

 

1-4 sound pretty petty to me. I don't think you'll have much issue there.

5 might cause an issue.

Don't need 60 days notice if its a mutually agreed increase (here at least, might be different in other states).

I think to start with I wouldn't allow any amount, they're probably just bluffing. They can take it to tribunal if they think its unfair. They might get anywhere between 0 and their requested amount there.

 

Ok
So many view points and perceptions here which is difficult to deal with.

Forget the blaming and I mean this and they mean that .... unless you have a lot of time to waste on people's view points which may or may not be true.

Tenants can threaten all sorts of things, your job and especially the PMs job is not to be at the effect of that drama but to decipher whether there any outstanding maintenance issues that you are legally entitled to do.

The blaming and allegations won't get anywhere unless you give it energy and allow it to turn into something.

Allow tenants to say what they want - stick to the facts only and choose a pm that can actually work with people.

Compensation can be awarded for real things not allegations

 

Just make sure they are not paying the 15 increase for the 6 weeks.

They sound like a pain, i would offer they could break the lease or take the place as they accepted & would not install anything either.....

Dont do these type of things during a tenancy is my advice.....or avoid it rather.....

 

You really should remove emotion from any decision.

You, and the tenant, have the right to refer disputes to the tribunal. To refer to it as "extortion" is far too emotional to enable you to make a rational decision.

It is far better to do work before a tenant begins a lease so that the property is in tip top condition.

Unless the property is remote, six weeks is far too long to wait for an installer for an air conditioner. Two or three days tops, maybe a week in a heat wave.
Marg

 

I was going to write a big response to this but I just checked and the OP said the tenants threatened to take them to consumer affiars, not a current affair. @nambis, @Marg4000 is right, the tenants have every right to take you to consumer affairs. If you have done the right thing, just collect up all the evidence and present it. I would not comply with any threat. If they want to lodge a complaint they can. Just keep a record of the threat and present it as evidence.

 

They wanna play hard? Play it hard if you have good evidence.

 

Keep all emotion out of it. Stick to the facts. Most things there are quite petty, and if they take you to the tribunal, this should be self evident. If you feel there's a conflict of interest with the PM, then make a change. There are a few excellent PM's here and I'm sure someone can point you in the direction of one that is fantastic.

 

Call their bluff.

And remove your rangehood and air conditioner.

And brick up your garage...

 

Thanks for the replies. I've decided to donate $1,000 to the Salvation Army in the tenant's name so he can claim it as a tax deduction. This way he can penalize me for improving his home and not profit from it personally by receiving the cash, he can only profit from it by reducing his taxable income by $1,000.

I've also given notice that I will be terminating my management agreement with the current PM and now looking for a new one who covers Brunswick and St Kilda. Any recommendations for a new PM will be appreciated. I'm currently paying 5.5% (inc GST) but happy to pay a bit more.

 

...ummm what? Is this for real?

 

WTF?

 

I haven't been thinking straight lately so I think I'll withdraw the $1k donation and just ignore the tenant's crazy demand for compensation

 

What the hell. Also 5.5% no wonder you got a monkey. Manage a property for a year for barely $1000 before costs/overheads

 

Leave the ball in their court and let them stress about it. I would just ignore/avoid it and change your PM. You aren't obligated to respond.

 

I could not work out what you were doing or the logic

irrelevant, best PM I ever had charged that price to those with 1 property