Tenants/ Real Estate Agent Problem

Hello all,

About two weeks ago, I received an email from my real estate agent saying my new tenants had issued a complaint that the aircon was not working and requesting my approval to call a plumber. I was surprised because there had been no problems with the previous occupiers (tenants had only moved in for 3 weeks). I was going to be out of the country on business for the next week and did not have time to check it out so I gave the approval.

When I got back, I had been advised that everything was resolved and the plumber bill would be deducted from my next months rent. Fast forward another week to yesterday, I received the invoice with description saying that the aircon remote was out of batteries and needed replacement. The charge was a $75 call out fee.

I know this is a trivial amount and I should have checked the property. At the same time, surely the tenant or real estate agent should have thought to change the batteries in the remote. The aircon was working fine (confirmed when I called the plumber).

I am not going to follow up with the tenant and real estate agent about this but would like to know what their (tenants & real estate agents) responsibilities are in case this happens again in future. Could the real estate agent have gone out to the property to check and confirm issues? Should the tenant pay for this bill?

Thanks.

Comments

  • +2

    Tenants should pay for it.

    If they tenants won't pay for it, the real estate should be paying the bill as that's what they get paid for, i.e. working on your behalf and asking the tenant what is the problem.

  • +2

    Ok, so you have basically confirmed you have a brainless tenet and real estate agent.

    Now, whether or not ur tenent has a brain probably doesn't concern you insofar that they are not so dumb they burn down your house, and they still have money to pay the rent.
    If ur concerned about either of the above you should find new tenants :)

    As for your real estate agent, well, I personally prefer a smart one, so I'll be changing real estate agents right away. I read that she is new, and the last one was fine, ok. But this new one needs to learn a lesson, bill her for the $75 and say, look, you costed me this, lift your game. This time you can pay the fee, next time it's your job.

    That's how I'd approach it anyway.

    This is what I did with my bank :), now I don't use commbank, costed me money, and wouldnt speak with me to resolve it. So I'm gone for life, and I spend my time convincing everyone I care about not to be with them.

  • -1

    Get rid of those tenants and change to another agents.
    Apparently, neither of them could have a look a remote.

  • Just speaking as a previous tenant of a property in Victoria
    We had an issue whereby the stovetop didn't seem to work
    We called the real estate agent's office to arrange someone to have a look. Turns out there was a rather unconventional switch that needed to be used to get the stove top working

    Got pinned with the $100 call out fee.

    It seems like it's the tenants job to pay for it.
    You should have a case.

  • -1

    The best way is actually offer to go there yourself to see if you can repair it (it could be something trivial). Agents won't go out to the property to check it (they don't get paid for doing that).

    At least now you know to ask the agent to inform the tenant to check the battery next time something like this happens.

    • +1

      wait.., what do the agents get paid for then?

      • -2

        Collect payments, help you lease property out, regular property check, arrange repairs, pay bills on your behalf (they could collect a commission when paying for your bills).

        Go to your property and try to help you save a few $$$ in determining whether the remote has a flat battery or it was just a broken light bulb doesn't happen - because they cannot charge you for that, and how do you expect the agent to say to his/her boss? Unless there is a property check that's just around the corner.

        Besides, to OP… assuming the tenant is aware of it was a flat battery in remote, I reckon they will check the battery next time. When it is really hot, the tenant would want to have the air-con on (and if that means checking the battery vs waiting for another day or two, they will most likely pick a formal option).

        However, to prevent all these common sense checks leading to expensive repair bills, you need to go onsite yourself.

  • -2

    That $75 must have really dented the old profit margin on a rental property. I'm sending good vibes and hope you recover soon:)

    • +3

      Contrary to what you may believe, not everyone owning an investment property is rich. I bought an investment property in my early twenties and was living week to week. This was at the time when my other friends would enjoy spending big when we went out. $75 then would have been significant to myself, why is it my responsibility to fund someone else's incompetence?
      If you find it such a petty amount why don't you offer to reimburse the OP?

  • It's a shame and batteries surely are something that I replace at home. I feel though that as you approved it you have to pay it. Maybe it's your RE's fault for renting to idiots?

    There was some discussion here about light bulbs. I change mine of course but if there's a fixture covering it we need to think about the possibility of breakage; those are fragile and easily dropped.

    And tap washers and hissing toilets; sorry that's really for plumbers to address (aside from the legalities and insurance implications). I can't remove a tap head without gouging it, and I sure as shit can't go replace the internals of a toilet.

  • +1

    When the lease is up, get rid of the dopey tenants and hire new agents to look after the property.

    Starts fresh.

  • +3

    Replace your agent. It's time.

  • I'll be the devil advocate here.. when the RE agent called you to ask for approval, did you ask them to check the batteries? you probably didn't. Because it didn't cross your mind. Just like it didn't cross the renter's mind to check for the batteries.

    A bit of everyone's fault really.

  • +9

    Thanks for all the advice - honestly was not expecting this much responses.

    After reading all the comments, I stand by my decision to not pursue the matter any further with the tenants or REA. The tenants are a young couple with a newborn and I am stuck with them for 12 months - $75 is a trivial cost in order to keep the peace. The REA is also new so I have written her a passive email with your recommendations i.e. checklist, thorough troubleshooting of the problem before approaching me, an agreement that future callouts if due to user error are on tenants account etc. I'll also note to either investigate the property myself beforehand or have a family member/friend do so before approving any other work done.

    • +2

      Sounds like a very rational approach, especially given it's a new REA - hopefully now that you've laid the ground rules with the Real Estate they'll be a bit more proactive in the future.

      And good idea not to lean on the tenants, they definitely jumped the gun but they could turn out to be awesome tenants in the long run and this will have probably bought you some brownie points with them.

    • Your "stuck" with the tenants. If they pay rent and keep the place tidy then you must be super picky because I have seen/read far worse!

      • I think you're reading too much into this. How would you have preferred I word it then?

        • Eliminating the word 'stuck' would suffice.

    • +5

      The tenants are a young couple with a newborn

      With parents that don't know how to change batteries, that kid is going to struggle.

  • +5

    I have rented a few places in my time and there are a couple of things that have been common in my experience.

    1. Never try and fix something yourself in a rental. The reason being is that you probably don't know what your doing and the real estate/landlord will claim "damages" for anything that wasn't reported broken.

    2. Don't expect something that's broken to be fixed anytime soon. First you need to report what broken to the agent in writing, then the agent needs to get off their ass and report it to the landlord, then the landlord has to make a "decision" of whether his customers are worth doing anything about. Then finally, when the landlord makes a decision you need to wait for a time for the plumber/electrician/handy man to come out and look at the problem… You'll probably need to take time off work for this as well. And you better hope the problem is what you exactly described as, otherwise the tradie will turn around and say. "Sorry, can't do anything about that without the agent authorisation".

    3. Once the issue is attended too there is absolutely no emphasis on the quality or thoroughness of the work, which means that whatever was wrong, will just likely happen again over time.

    4. Once everything is completed and everything is back to normal there is no follow up, not from the tradie, and not from the agent, because let's face it neither of those people give a rats ass about the outcome.

    I think you have taken the right approach… Treat your tenants like customers, and clarify with the business managing your property what your expectations are. And if you are going to inspect the property yourself can i recommend that if you haven't already, introduce yourself to your tenants in writing and stating that you have both theirs and your best interests in mind when inspecting any work done. Customer loyalty can go a long way in protecting your investment.

    • +1

      That's disappointing to hear you've had a bad experience. I am leasing out a property and try my best to look after the tenant there. He pays on time and is a quiet and reliable tenant (hence why I'm keen to keep him). Just remember not every landlord or owner is a jerk :)

      • Thanks, its no so much that i think of the various owners or landlords as jerks, I just think that renters are rarely viewed as "customers".

        The best landlord i ever had was a guy in balaclava. We rented directly off of him and we made it a habit to keep him updated on what was going on with all of the apartments and always kept the place in fantastic condition, probably added value to the place given the work that my mate and i put into the back area. Point is a happy customer is much more beneficial to a landlord than just a tenant.

  • OP, RE agent here.

    Where's your property in VIC located? Happy to help you avoid same problem in future. You can pm me :)

  • TBH it's so wrong of them to not check the batteries and they should be liable for the bill, but the process for $75 is just not worth it. If it was me I'd wear the $75 and just learn for next time. Thankfully it wasn't a large sum.

  • +2

    Real estate agents are useless.
    Take your money and they dont even do their job properly.
    Dunno if we are unlucky but we are on our second one, thankfully not as bad as the last.
    You should charge the tennant $25 for stupid tax.
    Dumbest thing i have heard for a long time.

  • -1

    I'm not stupid, but I doubt even I would have thought to suggest to the tenants to check the remote battery. As the owner of the property, it seems that it didn't occur to you either when you received the call to ask the agent / tenants to check the battery etc.,

    As an ex-property manager, no I would not be going to personally check on your air conditioning unit. Despite what people think a property manager's job is busy and extremely stressful.

    Do one of two things a) check the property yourself after each final inspection or b) Leave an instruction list or 3) if items such as the air conditioning remote require battery changes - say so. Either on the back of the remote or on your file with the agent, or on the instruction manual in big letters that you leave inside the property.

  • Something like batteries, lightbulbs etc is just a consumable. You shouldn't be paying for that one at all.

  • -2

    Make a case and take it off their bond

  • +1

    and this is why i believe in mandatory desexing of humans when such stupidity is shown so such genes are not pasted down to another.

    • -1

      That would be awesome. Imagine a world free of religion !!!!

    • *Passed

      Please hand in your reproductive license :-)

  • Matter like these are dead easy to resolve. The property manager pays for the call out, or they lose your business. It's the property managers responsibility to ensure there is a reasonable attempt by the tenants to fix basic maintenance issues like this. It's unbelievable they didn't ask the tenant if they had tried a new set of batteries first?

  • The agent's lack of knowledge and the tenant's lack of basic troubleshooting means you shouldn't be the one to foot this bill…

  • +2

    I'm a Landlord, The way to deal with issues is to know your responsibilities. Anything you are unsure of, do not trust your property manager to know. When contacted by your property manager about issues that you are unsure of, do as I do, I say, I will pay for and be responsible for anything that is my responsibility. I will permit you to call an electrician or plumber at your request, but if I find out that it is a fault on the part of the tenant, then naturally the costs of the call out will fall to the tenant. Works everytime.

  • I don't understand why they bothered to call a tradie to change the batteries, that would be more trouble than just replacing themselves. Don't they value their time, calls, waiting, time spent for the tradie etc, just to save a few $$$

  • -1

    It would be rather sad if one of the tenants or tenants friends notices this thread. I'm sure they will be thrilled to learn on this forum that you are "stuck" with them for 12 months. Why chat face to face when you can complain on here about $75.

    I'm sure the agents will be super pleased as well!

  • -1

    Its the price you pay when someone else is paying your mortgage

    • -1

      I have rental unit.
      A few quick sums for you;
      $1800 council rates
      $1200 water rates
      $1200 strata rates
      $700 insurance
      That's $4900 per year; not including maintenance, repairs, agents fees and charges, spurious charges such as above, before I even start to get my mortgage “paid for”

      • -4

        It was your decision to purchase it albany so why whinge on here?

        • +2

          Just pointing out costs that perhaps renters don't completely see…
          No whinge.

      • +2

        All of which are tax deductible for you as someone who rents it out so there's an immediate 30 to 40% off that in actual cost to you assuming you have an income above minimum wage.

      • $4900 a handy tax deduction huh? Before we bought we rented and paid $680 a week which pocketed our landlord a handy $35,360 P/A. So even if they had to pay $4950 which isn't near what they had to pay and they're still $30,360 in front.

        If you hired a car in the middle of summer and the aircon wasn't working theres no way you would just "deal with it" you would want it fixed or a car with working aircon. The end of the day the tenant is paying for a service that the owner is getting paid to deliver. People seem to have this mentality that owning and leasing property is an easy way to make money, when the time comes that they have to pay for any sort of repairs they kick up a stink.

        I am not debating that owners don't incur costs however in most cases the tenant is largely footing the bills in order for the owner to secure their investment.

        • -1

          So even if they had to pay $4950 which isn't near what they had to pay and they're still $30,360 in front.

          Ok, so clearly your bank has 0% interest & fee free mortgages, mine doesn't unfortunately…could you give us all a referral to your loans officer…

        • +1

          @StewBalls:

          You're missing the point, so you have some money coming in and some money going out and on a week to week basis you might come out on top or you might have had to throw some of your own money towards it.

          As for the case for most land lords, at the end of the day the tenant is the one who makes the whole operation possible. Imagine it like a business, with no customers you wouldn't go on trading. Just quit your whinging, you're offering a service and it comes at a cost.

        • -2

          @nswfireman: No I got the point, it's you that clearly doesn't understand the mechanism here. Well, either that or your maths are total crap and you're utterly clueless about what things actually cost in the real world.

          We all know how supply & demand works champ; it might be new to you, but it's economics 101 for the rest of us; but what you need to realise is that there is a significant legitimate expense in the supply chain with this scenario that you are conveniently forgetting to factor in.

        • +1

          @StewBalls:

          Your response lacked any real facts or explanation to support what you're arguing. I really dumbed it down as to save going into too much detail, but essentially your point in bold is exactly my point also.

          I agree 100% that there are legitimate expenses however like I originally said "its the price you pay". You wouldn't have an investment property if you weren't benefiting from it in some way, heck it wouldn't be an investment at all would it? You are providing a service and it costs money, when you incur expenses that you otherwise feel you shouldn't be liable for, thats just the nature of the beast.

          Thats why I don't whinge about having to pay shop rent and utility bills and wages along with the rest of it to run my business because I understand that running a business costs money but after all my expenses I am still making money and moving towards owning my business. It involves some hard work unlike buying a dump, sticking some tenants in it and charging them premium price.

  • You should pass on the cost back to the tenant. That's what I would do.

  • -2

    Sent your tenant rent increase notice, Simple!

  • +1

    it seems like youre having a not so good agent just like I am but I am on the other side ( tenant)
    I currently living in a 2 beds apart which right now covers by mould. the mould or fungus almost damaged all furnitures, clothes, shoes etc
    I informed the agent in Sept, and until now it hasn't been fixed. at first he told me to open the doors to ventilation ( during winter ) then he told me to use soap to clean it, in other words he blamed it on me. the builder who built the apart came last week confirmed that the mould was from inside the walls, which happened before, and got fixed, and now it happened again. now I am about to enter a uphill battle with them as consumer affairs advised me to file a compensation application but I still have nowhere to go. so frustrated. I am curious when comes to paying the bills, who's gonna pay for it, the landlord or the agent. because it wouldn't get to the worst if the agent acted right away. now we are forced to move so they can fix the damages but I still haven't found another place yet and the agent only offered to be my reference.

  • +1

    If the aircon worked at property inspection, ie 3 weeks before, I'd charge the tenant. I would of thought the blank display on the remote might of been a clue for the tenant.

  • +1

    This is the agent's failing. Express your disappointment - what do you pay them for? Ask them to cover the cost as they have not done their job diligently. If you have to follow such things up then manage the property yourself. It is really very easy to manage an investment property - you will probably do a better job anyway. I look after 5 and some weeks there is a bit of work to be done but most of the time the only work is to check the bank account every two weeks. Keep your tenants happy and they will reward you!

  • +1

    I'm also thinking that it's extremely strange that they wanted to call a plumber to fix an AC.
    Maybe the tenants and the plumber are mates and you just got scammed for $75…

    • No, I'd say it's a near certainty that the PM & plumber are mates though…same end result.

  • +1

    i believe tenants should always get charged the incorrect call out fee. ie telstra fualty phone or socket cpe etc

  • +4

    There neeeds to be better laws to protect landlords.

  • +1

    Time to raise the rent. I'm pretty lenient on tennants if they dont cause trouble, hell I dont even do the 3% CPI thing every year bit this is beyond the pale, stupid people do not deserve a break.

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