Agent not paying landlord

joequimby on 29/07/2014 - 16:57

Hey OzBargain, hoping to get some advice.

So the story goes like this…
I bought my first home and settled in late May. The property was sold with a lease expiring in early July and managed by a rental agency.

Upon offer acceptance, my solicitors instructed the rental agency to provide the tenants with notice to vacant as I needed to take possession and move in. At time of settlement, calculations were done for the current month to June, which meant I would receive one month rent to July.

Everything has been fine and the agent has completed vacate inspection and handed over the keys. I've moved in but am still waiting for the final month of rent to be paid.

When the keys were handed over, I asked when I could expect payment and the response was that she would email me a response. No response and this was three weeks ago.

I emailed her again last week. No response.
I emailed her again this week. No response.
I called her this morning and reception said she had stepped out, took my details and would return my call. No call (yet).

I can't help but think she is avoiding me and trying to get away with not paying the final month of rent. As I've made by loan repayment already, I could really use that rental income and it's not fair that they're holding onto it and being uncooperative.

I'm in Victoria and thinking of escalating the matter to my solicitors but before I do that, can OzBargain suggest what else I can do? Perhaps send a letter of demand?

TLDR: Agent (in Victoria) owes me rent. What can I do?

Thanks

Home & Garden

Comments

  • tonka on 29/07/2014 - 17:11
    +1

    Make an appointment to see them. If she doesn't show up talk to the boss.

  • Davo1111 on 29/07/2014 - 17:17
    +3

    Send a registered letter with the amount owing, and payment date. Then if it's not paid by that date, book with VCAT. The costs to submit an application are here although i suspect a strongly worded letter sent via reg mail will show you're serious.

  • Almost Banned on 29/07/2014 - 18:23

    I find this interesting. I assume you have no management agreement with the agent - so they have no/questionable entitlement to their fees???
    Would this be correct? Perhaps this is why.

    • joequimby on 29/07/2014 - 18:59

      Yes you would be correct. I don't know what agreement was in place so I have asked for the final statement together with payment.

      Surely the purchase of the property with the lease would also mean it came with the pre-existing management agreement.

      Does this complicate things?

  • xyron on 29/07/2014 - 18:52

    Prepare and serve a Statutory Demand on her business for the amount owing.

    NOT LEGAL ADVICE

  • snappy1234 on 29/07/2014 - 18:57
    +25

    Bikies

  • Lequ83 on 29/07/2014 - 21:19

    This is a bit tricky.

    The tenant has a lease, but in one sense they don't have any legal agreement with you.

    You have no management agreement and thus no legal relationship with the agent. This should have been sorted before settlement.

    This kind of thing does happen all the time though.

    Go into the agency and if the property manager doesn't give you a satisfactory response speak with the agency principal.

    Most agents pay rent to their owners at the end of each month. Perhaps they think they will just reconcile the whole amount to you at the end of July.

    Another scenario may be that they have continued to pay the rent (by accident or stupidity) to the previous owner and are having trouble recovering it.

    Good luck!

    • Randxyz123 on 30/07/2014 - 08:59
      +3

      Another scenario may be that they have continued to pay the rent (by accident or stupidity) to the previous owner and are having trouble recovering it.

      I think this is the most likely. The payment is on auto pay and automatically goes into the (old) owners account but someone (the agent) forgot to change it.

      However avoiding your emails and calls is simply unprofessional in any profession. If it were me in this situation and (I don't have any experience with agents), I'd ask to speak to the manager. He/She may not know or realise what is happening…

  • ukmark on 29/07/2014 - 22:17

    Maybe the tenant stopped paying rent when you gave them the kick out notice. If that is the case though, the agent should tell you that.

  • Kevan2 on 29/07/2014 - 22:26
    +1

    Upon offer acceptance, my solicitors instructed the rental agency to provide the tenants with notice to vacant as I needed to take possession and move in. At time of settlement, calculations were done for the current month to June, which meant I would receive one month rent to July

    Check with solicitor settlement letter. Would not adjustment be made on settlement monies paid?

    Read solicitor settlement letter or ask solicitor if letter is not to hand before any further action is done!

  • gwbh on 30/07/2014 - 09:07

    I would approach REIV, they have their own complaints process and will get the agent paying attention much faster than a letter.

  • JimmyF on 30/07/2014 - 22:01
    +1

    Stop calling… Its easy to be given the brush off.

    As above, book a appointment, or rock up to the agent office in person and demand to speak to them. If they are not around, speak to the manager/owner and go from there.

    If this option isn't for you, then try the letter of demand, followed by vcat.

  • StewBalls on 30/07/2014 - 23:00

    Maybe Vic is different to NSW, but it sounds like some pretty shoddy conveyancing around the aspects of settlement to me…did you use a solicitor or conveyancing company?

    • joequimby on 31/07/2014 - 00:40

      I used a solicitor and don't feel they've done anything wrong.

      The statement of adjustments is plain as day
      Rental
      $xxxx.xx for the period 08/05/2014 - 09/06/2014
      Paid - vendor allows 20 / 33 days

      The lease expired 08/07/2014 and I took possession the same day, so I should be entitled to the rent 10/06/2014 - 07/07/2014.

      In the final email my solicitor sent to the rental agent, they wrote:
      "Our client will contact you direct in relation to the final rental payment to be made to him"

      Now that I think about it, I emailed my bank details to them straight away but they never acknowledged receiving that email.
      Like I said, the agent was fine with doing the final inspection and handing over keys, just horrible when it comes to payment.

      I called again and reception said she wasn't there. She did give me her mobile though and it's correct but will need to try again tomorrow.

      Failing that, I will write up a letter of demand as suggested here.
      Thanks all!

      • breaks on 31/07/2014 - 04:06
        +2

        I hope you and the previous landlord signed and lodged a form with the RTBA registering you as the new owner of the property and transferring the tenant's bond etc under your name within five days of receiving ownership. More here

      • StewBalls on 31/07/2014 - 17:48

        Ah, my bad…I thought you took vacant possession on settlement day.

  • ih8nayms on 31/07/2014 - 07:10

    Not sure Victorian laws (I work in nsw but conveyancing is similar in Australia) but regardless… Common sense provides if you settled on 8 of July as you said… You're not entitled to rent before settlement date… You're not the owner of the property. You will get a letter of attornment on settlement date for tenant pay you from there on. But you have possession and moved in(tenant has vacated) hence you have 0 entitlement to rent.

    Understand? Why should you be entitled to rent, when you have 0 title to property before 8 July. 9th July onwards you are entitled to rent/rates. Read up on google about adjustments. Unless it's in your sale of land contract as a special term… I dont see you entitled to any rent for last month.

    Disclaimer.

    This is not legal advice. Just pointing out basic conveyancing practice.

    • joequimby on 31/07/2014 - 07:33
      +1

      Thanks for your input.

      Settlement was mid May so the solicitors took care of adjustments up to and including 9th June. I'm claiming 10/06 - 07/07 which I believe I am entitled to, if I'm not mistaken?

  • AMLagonda on 31/07/2014 - 11:41

    Keep us informed if you ever do get the money, somehow I think your being duped as you have no legal binding contract.

  • bigticket on 31/07/2014 - 12:10
    +3

    I would do it the old fashioned way.
    Go to the office unannounced(at their busiest time) if I could not make an appointment with the agent. Ask the staff or the property manager for the cheque politely. Then ask for the licensee by name(find that out before hand).
    If given whatever excuse and the cheque is not in my hand at that time, act like a child on a temper tantrum or a bikie. Continually bang on the counter, scream at the top of your lungs invade their private space, bang doors etc and do not leave for a while. Embarrass them in front of customers. Then leave while telling them you be be back tomorro and repeat the next day. Do not try this if you are of a timid nature. You really need to 'loose it' for this to work.
    Let me know how you go.

    • Daabido on 31/07/2014 - 12:38
      +2

      And get a Police escort home. Nicely done. A firm, "I will be sitting here until the matter is resolved" is all that is required. Your continued presence will be enough to have the matter sorted.

      • bigticket on 31/07/2014 - 15:11
        +2

        I am not saying to break the law, nor is anything I said above illegal. You can stretch moral protocols a bit without breaking the law. Any sane business owner that owed someone money would pay up quick smart. Or you can be a pussy and sit in the corner and hopefully they will notice you…

        • Daabido on 01/08/2014 - 07:06
          +1

          Being restrained does not equal being a pussy. The mere continued presence of an unwanted customer will be enough to make staff uncomfortable and force the hand of the business. Oh and if you think nothing you suggested is illegal, you are very uninformed. If you acted like that, you would break a number of laws and it would be the right of the business to have you removed by the Police. Wander down to your local Police station and ask them if you acted like that, what could you be charged with.

  • slow on 31/07/2014 - 13:14

    I assume the tenants got their deposit back? If so they must have paid their last month's rent (or it came out of the deposit), so the agent would have got the money.

    I had a situation a few years ago where I was owed money buy a dodgy real estate agent who didn't want to know, and I ended going there in person and making a polite nuisance of myself until they paid.

  • JimB on 31/07/2014 - 15:28
    +1

    hmmmm, it wouldn't suprise me if the agent paid the previous owner in error and hoping not to have to fork out money from their own pocket.

  • netsurfer on 31/07/2014 - 21:54

    My suggestion is to talk to the owner of the real estate agent. I was in a worse situation. My real estate agent does not provide statements on time, nor pay me the rent collected on time on a regular basis. E-mail the agent who does the property management activities and calling her were ineffective. As money is involved, you need to talk to the right person. In my case, only the owner of the agency has the ability to release the money.

    There are so many dodgy property management agents out there.

  • joequimby on 01/08/2014 - 13:34

    Thanks for playing along.

    Quick update that I called again today. She was on the phone (conveniently) and again left a message to call back. I fired off an email asking her to respond by COB Monday otherwise I'd escalate the matter.

    Next course of action is to write a letter of demand, addressed to the license holder of the firm.
    Thanks all!

    EDIT: She has replied saying she'd reply by Monday to find out why money hasn't been paid.

    • solidice on 01/08/2014 - 15:46

      So a friend of mine was in a similar situation. Except that during the sale a new management agreement was created between him and the leasing agent for the remaining ~8 weeks of the lease. Perhaps I missed something in reading this, but did you actually sign a contract between yourself and the leasing agent for the remainder of time of the tenants lease?

    • XeSSiV on 06/08/2014 - 10:34

      Make sure you keep evidence of all communication between yourself and her, just in case you need it.

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