Property Manager Responsibilities

wongsun on 24/07/2018 - 22:46

Would appreciate the help of this community with an investment property issue.

We have an investment property in Sydney and the current tenant has just vacated.

In looking through the pictures on the exit report, we noticed that there was substantial damage done to the carpet. This damage is more than normal wear and tear. When the property manager was questioned they advised that was done by the tenant prior to the tenant that just vacated. The property manager was still looking after the property during the previous tenant's lease. On further questioning the property manager has advised that the bond was returned for the previous tenant and nothing further can be done.

This doesn't seem right, and we want to hold the property manager accountable but not sure where to go from here. Would appreciate any assistance.

Financial

Comments

  • Telcius on 24/07/2018 - 23:33
    +1

    Contact the REIA?

  • jug123 on 24/07/2018 - 23:35
    +5

    They should have an in going inspection report that you wouldve\shouldve been provided, was it listed on that? What about the periodic inspections was it listed on these?

  • bigticket on 25/07/2018 - 00:48
    +1

    I'm a landlord myself. There have been two tenants come and go and you have not stepped in your own property once to check the condition of your investment? That's a long time between visits.

    If you are going to trust a agent to be your eyes then I would say that the agent can spin any feasible story they like, as you do not have any proof otherwise and since 2 tenants have been through, its sounds like wear and tear.

    • kipps on 25/07/2018 - 23:07
      +1

      Really? No way in hell would I tolerate this from my property agent. Get the entry and exit reports and compare them. They take enough in fees to damn well manage the property. If this was my agent they would be sued for negligence, in the same proceeding together with the relevant tenant.

  • garetz on 25/07/2018 - 01:14
    +1

    Ultimately you are responsible for looking after your property, the property manager will get away with doing the least possible work if you let them.

  • Pumpkin_rrr on 25/07/2018 - 06:54

    If it is the previous Tenants, then claims should have been made against them when discovered?

    Have a read of all reports from previous Tenants to the current ones. This includes Inspection Reports, Entry and Exit Condition Reports. Also review all emails and other communications with them. If they have change in staff , current staff may not know about the damage.

    Just continue the duscussion with your PM. Are you happy with them in other aspects?

  • DarkOz on 25/07/2018 - 08:25
    +3

    The real estate agent who released the bond to the previous tenant whom did the damage is definitely being negligent. The property should have been inspected with the bond kept and deducted for the cost of repair.

    Forward all the relevant information to the head office of the agent involved and demand them to resolve it. They will probably deny liability but you can work out what to do next.

  • MatthewSoul on 25/07/2018 - 09:04

    Just check the ingoing report.
    They cant claim the bond when both ingoing and outgoing reports are the reflecting the same condition.
    Otherwise the tenant can take you to tribunal.

    • MITM on 25/07/2018 - 12:04

      Agreed, but PM failed to note the damage. Then again, PM may have considered it fair wear & tear. PM has to agree it is damage before any claim can be made. And admitting damage admits negligence/liability.

  • GG57 on 25/07/2018 - 09:45

    You need to be more diligent, IMO. I would have been asking for entry / exit reports for each change of tenant and arranging for my own inspections.

    You are paying the property manager; if you are not satisfied with their performance, change to a different property manager.

  • HighAndDry on 25/07/2018 - 10:09

    The property manager was still looking after the property during the previous tenant's lease.

    Were they managing the property at the start of that previous tenant's lease? For them to be able to claim against the bond, they'd need the pre-move-in condition report for that tenant.

  • MITM on 25/07/2018 - 11:56
    1. Firstly, does the PM agree it is damage (and not wear and tear)?
    2. Was it noted on the previous tenants Exit condition report ? (No - then go to next step*).
    3. Was it noted on the current Entry report ? (No - then go to next step^)
    4. Was it noted on the current Exit condition report ? (NO - then ask PM why not and there is the negligence)

    *According to the PM, it should have been listed on the previous Exit report.
    ^Last tenant is liable for the damage - but got away with it scott free.

    You need to go through past condition reports as evidence to make your claim against your PM.
    See if they want to make an out of court (cash) settlement.

    Be prepared to move to a new PM.
    The next Entry condition report needs to note the damage until it is repaired.

    As you are the property owner and now you are aware, the onus is on you to repair the damage, so I'm with you - go after the PM.

  • Tregetour on 04/08/2018 - 13:30

    PM should have picked up on it. as he's released the bond, he'll cover his ass however possible. Agency ultimately has a duty of care to be thorough in this regard.

    I'd push to have them give an explanation. If carpet is less than 7 years old you can push for them to reimburse (their insurance covers this type of error). if its older than 7 years it may be harder as that is what is deemed as the general life span of carpet - regardless of in/out condition (from an insurance and QS perspective).

    Get them to discount their fees/waive their reletting fee perhaps? Once sorted, find a new agency.

    Hit me up with any questions as i've got plenty of experience in this stuff from both sides of the fence

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