Trashed Property

Hey guys, been a long time reader!

I now have my own question/predicament.

One of our investment properties has been managed by a company for the past 5 years and has had same tenants for past 3. I never really paid it much mind as I figured the money was coming in and I’m being charged for inspections (i know I should have been more diligent).

I heard from the property manager about 6 weeks ago saying tenant was in arrears and as it’s happened a number of times they are going to tribunal and ask for her to be evicted. Tribunal said she had one week to pay a certain amount which she failed to do, so they vacated property over the weekend.

I went to look at it and the backyard had been used as a junkyard, there was literally no spare space on the ground and it’s a 650sqm block. The inside has every wall/ceiling pinched in, bathroom is completely wrecked as is kitchen. All doors have been removed and they’ve had fires outside which have burnt the eaves.

When I requested the inspection reports it turns out they hadn’t completed one since February last year but had still been charging me for them.

Insurance have looked at it and are going to pay me out. However it leaves a bitter taste in my mouth that the property management company gets away with this and I have to foot the bill for removing all the junk plus the stress of it at all.

Is there any recourse available to me with regards to claiming from property management company?

 

Didn’t you say insurance was going to pay - presumably for the clean up too?

 

Nope they don’t cover the clean up.

 

You know you should be getting actual reports with photos when they do inspections, right?

 

Yes, I’m aware. But I figure I pay someone to manage it, so I expect it to be done properly. Defeats the purpose if I’m micro-managing the property manager. Anyway, thanks for the advice legend.

 

Personally dont think expecting, and reading a inspection report is micromanaging. But im not the one with the trashed house. Fire? Seriously?

Trust but verify. Trust and pray is crazy.

 

I did say I should have been more diligent.

But I wasn’t, lesson learnt. I came here asking what options are available to me? Recover management fees? Recover cost of clearing property?

 

There goes the theory that property investment can provide passive income!

Why was there such a gap in inspections?
Property manager ...... Failure!

 

I'd certainly be asking the property management/licensee to be paying you some compensation - either a refund of some property management fees for doing such a **** job or they can pay your out of pockets as they have a duty of care to you the client to do those inspections to ensure the property is kept in good condition.

Definitely an immediate refund of the inspections that weren't done and then some compensation is what I'd be asking for

 

Definitely this!

 

Yeah that’s what I was thinking, a combination of both, they’ve been completely unethical in their practices so I feel it’s not much of an ask.

 

What area is the property in Joely?

You're lucky insurance is paying you out - they often ask for the inspections as part of the claim submission and if you said you didn't have them I'd hate to think what would happen to the claim.

 

Great line, will remember this one!

 

Checklist off the top of my head for things you can do:
» Wilful/Malicious Damage Complaint with Police (Criminal)
» Minor Civil Dispute - Compensation Claim xCAT/Mags Court for enforcement (Civil)
» Engage debt collector to follow up with tenant for money indefinitely until repaid
» Black list tenant on tenancy databases
» Insurance claims as you've done
» Metal recycler/car wreckers maybe be able to assist in removing those type of goods for free as they make money if it etc.

If the PM hasn't been doing adequate routine inspections and/or adequate record keeping (such as inspection reports preferably with date & time stamped photos), and this has hindered your ability to make a claim/seek compensation, then maybe have the discussion with them seeking a refund on the fees you've been paying.

Good luck and what a sucky situation

 

Rack it up a tough lesson that could have been far worse and ensure its not repeated. Tidy up and get a decent tenant with your new PM.

I would use the condition report images to identify non-essential maintenance and ensure you spend enough to avoid deterioration and it will keep a tenant happy. You can plan it, find sale items and spread the cost. The agent will only likely indicate "must do"repairs but there is more to maintenance that this.

 

I am thinking that at least the property manager bothered to take them to the tribunal and had them evicted. In an eviction situation there is often damage so you can't blame the PM for that. Your insurance should also cover the loss of rent whilst the property is being repaired.

Get a new PM that will find you a good tenant.

 

Heaps of PMs do not do this, I have been at inspections where the principal does a walk through, no photos, says everything is ok when unknown pets were found and other damage etc, reports just written.

If you have no reports at all, and being charged for them, well, I call that fraud.

 

I am not sure where your rental is, but wherever it is, if you have a PM, they have a responsibility, I would pursue for any out of pocket & keep in mind the many lessons, in is a never ending learning curve, I still learn new bizarre things about people acting as PMs all the time......only you are likely to really look after your own hip pocket, so, it is very hands on, and even then, you will be the loser most of the time.

 

PS, I have seen enough places where people did not attend or get proper reports, you should consider yourself lucky maybe, as many were drug labs or grow houses, which need considerable rebuilds to be able to sell or rent again.

Ain't it grand being a super rich landlord just raking it all in while sitting on the beach somewhere ?

 

I'd be sending a letter from a lawyer to your PM agency with a Notice of Intent to Sue unless they make you financially whole asap. They need a rocket up their ass for their negligence, failing to meet their duty of care standards and theft. They should be covering you for any out of pocket expenses and refund you the money for the reports which weren't done. That's theft!