Hi. I bought an apartment in South Perth in July last year. I then signed a management for the selling agent to manage the property for me.
It has since been rented short-term 3 times in quick succession to different tennants … 10 days, 3 weeks & now 4 months (through ’til early March this year).
So it has now been rented for 12weeks or so and yet I have not received a cent in rent monies or a single account statement.
I called the property manager on 29th Dec and asked when they might be passing on the rent monies they had collected – she said they’d be emptying their trust accout the next day and they’d pay me then and send out the statements.
12th Jan today and nothing yet.
I find it very irregular that they do not settle the accounts at the end of each month and am annoyed that I have not receievd a cent in rent.
Should I be worried? I am in Karratha right now and return to Perth next Wed, what is my next step?
Can I break the agent’s agreement I signed with them by saying they have not performed? Have they done anything that is actually illegal?
Any help appreciated.
rgdsI’d be worried and I’d get a new property manager. Contact a new manager and they should be able to sort it for you.
willWell,
there are several options (lets forget the illegal ones – just for the moment)! Option 1: You give some-one in your family the authority to not only collect the money, but also to find out on your behalf what the problem is.
Option 2: is you call and ask for the Top Dog (the principle?!?!) and get some answers. Either they will sort it out for you or they will give you final reason for dumping their agency and then you’d have to send in the debt collectors. I doubt it will get to that point, though.
Other than that, wait unti you get back and call for a meeting with the principle and the PM get them to explain to the Boss why the stuff ups! Talking quietly and little (even if uncomfortable) forces them to fill in the viod (some psychology there for you – it helps sell cars too!).Hope that helps.
Cheers
C@34
Surely there is an industry standard they need too be following and therefore someone you can complain too.
Is the agent an independant or part of a franchise group?
Byronent
Adelaide SAHi Mcdirt,
You need to get stronger and ‘heavier’ with this PM as you may have a theft matter on your hands – they are obliged to forward the rent to you (usually monthly) and a statement – this is outlined in condition 4 of your standard agreement.
If they haven’t done this they are in breach of their obligations and you are entitled to cease their management agreement immediately.
I would ring the PM and indicate that you expect a statement to be faxed through to you by lunchtime and due payment to be deposited via internet into your account by lunchtime. Follow this up with faxed written notifiaction of the same highlighting the issues you raised in the post.
Failure to do this will result in your taking the matter directly to the Real Estate and Business Agents Supervisory Board, Real Estate Institute of WA and/or WA Department of Consumer Protection.
<Inserted after original response>
As an aside – have you specifically approved the short term rentals or were these break leases?Short term rentals do incur additional letting fees which can eat into your cashflow. If they were all breakleases then the previous tenants are required to pay rent until a new tenant is found and any advertising costs incurred in locating a new tenant.
If you need any further guidance do not hesitate to get in touch.
Derek
[email protected]Property Investment Support Available.
Many thanks for the replies, the REBA info is just what I was looking for. I’ll go and see the agent on Thursday after I get home and will have it out with them. Then I’ll have to decide whether to make a complaint to REBA or not.
Either way, I guess that I’ll be looking for a new agent in South Perth as there are a few other things I’m not real happy about with the current property manager.
Will it be messy/complicated severing the agreement with the agent as there are tennants in the property until early March and I have no idea what rent they have paid in advance etc?
The agent talked me into some short-term leases as they said that the market would be better for this sort of property Jan/Feb as Banks and Insurance companies etc move their people about at that time. They said verbally to me that they would not take any letting fees for the short term rentals (the rental periods have been 10 days, 3 weeks and now 4 months). I bought the apartment from them after they said they could rent it no problemo at a figure they gave me, it took them 4months and I didn’t get the rent they told me I’d get.
Once again, many thanks.
Hi Mcdirt,
Hopefully you will see this before you go.
Your agent should/would have asked you to sign an agreement to manage your property. They generally use the standard REIWA document and in it there is a requirement for the agent to forward through to you the balance of rental monies due to you.
The clause also provides you with an immediate penalty free ‘out’ if they fail to substantially perform their duties.
Either way you can get out – they have failed to perform or you don’t have an agreement.
Having said all of that they will probably try to pull the ‘you have signed and agreement (if you have)’ or ‘you will owe us half of fees due’ to us.
Don’t be awayed by this – explain that you would be happy for REIWA/RIBA to hear of your concerns and that they should rule in your favour based on comments made by yourself.
Finally – I would make a point of ringing the PM before you depart to make sure they are in and also inform them that you will require, when you leave, a statement of total rental and a cheque (or direct deposit made in your presence) for the balance due to you.
Derek
[email protected]Property Investment Support Available.
Derek, Once again thanks – good advice which I will follow.
McDirt,
Chin up…I’ve had a bad run with 3 separate PM’s in the South Perth / Como area….changing around doesn’t help much…they are pretty much as poor as one another…can you take comfort from that ?? When you finally do get a statement, make sure you are sitting down and have a bucket with you…..”Eating into your cashflow” doesn’t really adequately describe what they strip from the gross rents received, especially w.r.t. short term leases.
C@34,
I’m far more interested in some of the illegal ones not mentioned….nonchalant PM’s respond far more promptly usually to these.
Cheers,
Dazzling
“Go hard or go home”
You must be logged in to reply to this topic. If you don't have an account, you can register here.
