We decided to sell our properties (4) and listed them with XXXXXXX. The properties are managed through a different real estate agency. 3 weeks after listing the properties I get a call from our rental agents telling me the tenants in one of the houses has not been paying rent. When they go around to see them the place is abandoned (ie trashed) and no sign of the tenants. When we advise the agent selling the property he replies:
“Ah yes – I’d been meaning to tell you. We leased a property to them just the other day”
Yes – that’s right – the selling agent (who happens to be the principal of the agency) encouraged the tenants to leave the property, break a lease with us and then put them in one of his houses.
So much for representing the vendors best interests.
And yes – we have talked to the REIV and to Consumer Affairs and both have said they think his ethics stink but there is nothing they can do!!
Hi malachii
do you have landlord insurance?
Sorry to say it now but we should always have landlord insurance.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Maybe the tennant is just seeking secure accomadation. If bought by an owner occupier what would have happened to them. Are they not entitled to look after their own interests.
Why did you not list the properties for sale with the property managers agency? I always list a property for sale with the property managing agency.
How far away from your home is this investment property?
I suppose thats always a danger of having a rural property. It almost sounds like there is a shortage of tenants in that area if the agency owner is doing this type of stuff.
If there is nothing you can do – I would march down to the property managing real estate agency and contract them to sell the properties.
Oh Malachii,
I feel your pain, been there myself, only in my situation the “tenants from hell” as I often refer to them as, finished the job by setting it alight the next day!!!!
Yes, landlord insurance is always a MUST HAVE.
No, agent’s don’t always act in the best interest of the vendor, although they should (and many do); sadly there are good and bad in all professions.
I would approach the agency managing the rental on this property. How behind in the rent were they??? They may not have given notice, and just took it upon themselves to stop payment in lieu of the “one month in advance” as some tenants do, in which case you’re not owed any money. Depending on how long they hadn’t paid, the Tenants Tribunal may be able to help recover some of your losses.
Either way, the bond money may help towards repairing some of the damage they inflicted.
All the best, please let us know how you get on.
Jo
Westan – Yes – we have landlords insurance (although anyone that has ever made a claim on this insurance will know that you can only recover certain things ie the damage must be “malicious”. All the crap and rubbish left everywhere are my problem)
GMH454 – The tenant had secure tenancy as they had just signed a 2 year lease so there is no way a new owner could have kicked them out. We could only sell the place to an investor.
Yack – Believe it or not we actually tried listing it with the managing agents but the sales rep didnt return our calls. After 2 weeks I gave up and went elsewhere (The rental agent side of the business is good but the sales side leaves a bit to be desired!)
It’s really not the hassle and the fact that it has cost us money (some of which is covered by insurance) – its the pure cheek of it. I cant believe that the principle of a real estate agency would jepodise a sale (which he has lost) as well as his reputation for the sake of renting a house. I mean come on how much does he get for signing up a tenant (about 1-2 weeks of the rental) and then possibly 6-8% of the rent. It may total $1500 for a year. Is it worth it??
Originally posted by Malachii:GMH454 – The tenant had secure tenancy as they had just signed a 2 year lease so there is no way a new owner could have kicked them out. We could only sell the place to an investor.
Very strange .. does not make any sense at all.
Hi Malachii,
I am with GMH here – if the tenant had a fixed term lease on your property they are responsible for meeting rent until the lease expires or a new tenant is found (at their expense).
I suggest you get in contact with the Victorian Landlords Association for advice and direction.
http://www.poaa.asn.au/victas/
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Malachii
That’s a dirty deal. If it was found that either REA has not acted in your best interest, they are liable. The process is available, and is probably lengthy. It’d be tempting to put a very sharp-toothed 10% ambulanace chaser type legal hound onto the REA’s heels.
Sounds like you need a good PM and a good REA, and you are suffering from a lack of both.
Tenant is liable for the rent until the end of the fixed period of the lease (2 years?) and all break lease / re-lease costs associated with changing tenants during the fixed period of the lease. Claim it all at a Tribunal, then claim it all on insurance. If they don’t cover it, change insurance companies to one that does.
cheers
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