Hope someone can advise on my rights and what I can do. My tenant vacated my investment property on the 28th June. My Property Manager inspected and asked him to go back and clean properly whilst advising that he had refused to steam clean carpets. In the meantime a builder friend of mine went round to measure to do some potential work and advised that the carpet was in an awful state. More than fair wear and tear. Huge big brown stains in the bedroom. Tenant re-cleaned and again refused to steam clean carpets. Meanwhile Property Manager took some photos for the outgoing report and I've seen the carpets and they are bad. So bad they I think they need replacing. In the meantime I've sacked my property manager (the firm is also in receivership) and my new property manager has visitied and remarked that the carpets need replacing and the place needs a clean. Yesterday my old property manager has returned the bond to the tenant and asked if I want to go to tribunal. I have landlord insurance and live 3 hours away from my investment property. I am going to visit on Saturday.
Can anyone please help?
Regards,
Red Man
Hi Red Man,
It seems relatively straightforward to me – have a word with your insurers, ask them if this situation is covered, first up. Your course of action will depend upon the answer to that question, in my opinion. Normally one might have a claim against the agent – shouldn't they have withheld money for the carpets? – but as they are in receivership, you are facing an uphill battle. What is the old manager proposing you go to the tribunal for – just the damage to the carpets?
Is it possible to replace just the damaged part, or is the whole property to be recarpeted? What is your excess on your landlords insurance policy? How will a claim impact you upon renewal, if at all?
Get talking to the agent and the insurer!
Good luck
Swampy
Red Man wrote:Yesterday my old property manager has returned the bond to the tenant and asked if I want to go to tribunal.Hi red man
Sorry to hear of your experience.
I can't believe they returned the bond. Surely they have documented evidence of the condition of the property prior to it being rented and what it looked like afterwards. If it's not returned in the same condition, I would have thought the bond wouldn't be released in full.
I'd call your insurance company and get advice.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Stupid question: are the carpets able to be cleaned or worn to the point of replacement?
Why did the agent release the bond prematurely?
What are you doing to mitigate your loss?
Chase the insurance to start with (with luck, you will get the cost of replacement and lost rent, for up to 12 months in some cases).
Lodge a claim re returned bond without your authorisation against the RE agent.
Lodge a complaint with the state RE Institute (they control the registration of selling agents and property managers.
Lodge a claim with the state Govt body that deals with RE agents and property managers.
Claim against the owners and ALL directors of the RE agency (the the recievers if they are truely in liquidation).
Go after ALL the Directors of the RE company with ASIC; try and have them declared unfit to run a company.
Lodge a claim via the Small Claims Court for any funds not recovered, including any insurance excess…claim against the RE agent, the property manager and ALL the directors.
In every case, use registered letters with each of the letters of demand with a signature required.No matter what, get your property back on the market ASAP to get cash back into your pocket.
You may even use this as an opportunity to add value by improving the property and therefore charge a higher rent.Cheers.
Colin
Thanks everyone for all your help and advice especially Colin. I'm going to do as he suggests.
Have a great weekend everyone.
Red Man
Update:
I emailed the Real Estate with what I intended doing (see above) so it would give them a chance to sort things out amicably. The man who's name the RE is named after has just phoned my mobile and left a message to phone him back. I will phone him back after lunch as I'm in work. Hopefully this will bring things to a conclusion.Regards,
Red Man
I'm meeting him tomorrow for a discussion after I viewed my place and taken photos. He said "There are things we can do and things we can't do". Any more tips or advice?
Regards,
Red Man
Suggest that you email him with an agenda of items to be discussed at this meeting/discussion & follow up with an email to him of highly detailed minutes of your meeting/discussion (keep to the facts, remove emotion) and clear dot points of what he agreed to do requesting that he reply by email to confirm reciept of these minutes and his further response to them. Whatever you can get in writing is important. Keep records. You may need them. Date and time this and all other communications.
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