I am not sure what I can do about this, or if it’s worth going to small claims tribunal… any suggestions would be much appreciated.
Basically, I employed the services of a property manager to look after my property while I worked overseas. Right from the beginning, I had trouble getting information from her, especially since I was limited to email. She “managed” the property for a bit over a year. During this time, there was 2 tenancies.
When I returned to Australia to live in the property, I found all of the carpets to be irreversibly stained, a hole in the ceiling above the laundry (under the ensuite of the main bedroom), and was only given 2 out of 3 sets of keys. The place was also not very well cleaned.
When I complained to the PM, she said that she would take $500 from the last tenants’ bond money. However, when all the evidence was put in front of me (such as entry condition reports, reports from the neighbours about the first lot of tenants and their treatment of the property, and the story from the second lot of tenants about the condition of the property when they moved in), it appears that the damage was done during the first tenancy.
I followed up repeatedly with the PM who stopped returning my calls and emails, before she finally left the company. In her last weeks, she denied having any knowledge of a 3rd set of keys (despite me having receipts to prove that there were 3), and she continued to try to claim the money from the second tenants, telling them that it was me trying to get the money off them and that I was going “overboard.” She also reportedly told them that I had taken money off the previous tenants, despite the fact that I didn’t even know that they had not received their full bond back.
I had told the PM that it was her responsibility to pay (through the company) for the damage if it wasn’t the second tenants that did the damage, and it wasn’t fair to charge them for damage they didn’t do. So, I dropped the claim against their bond and demanded the money for the carpets and keys from the PM. I have a copy of an email from the PM in which she admits that there was carpet damage by the first tenants, and that she had organised the carpets to be cleaned, but had not checked to see if the stains had been removed.
I believe that, due to our contract covering quarterly property inspections, she has no excuse as to not knowing when the damage was incurred. And there is no excuse for her not inspecting the property thoroughly before letting the second tenants move in.
There are many other examples of her not doing her job, but the loss of keys and the carpet damage have both cost me the most money. I had the locks rekeyed and the carpets redyed so that I could get good tenants in, in good conscience. Landlord insurance has an excess per “event” so it isn’t worth making a claim. Also, after a phone conversation with them, they said that I wouldn’t be covered, anyway, because my property had been mismanaged.
I went to Fair Trading who told me that no “laws” have been broken, but if I feel that she has broken her contract to me, I can claim at small claims tribunal. I have since moved across the state, however, and it will cost me a lot to go the small claims court back in the city in which it occurred. I want to hold the PM accountable for not doing her job, but I don’t want to pay a fortune and then lose it all, without even an apology.
Is it worth taking further??
any suggestions would be much appreciated.G’day lobochick,
My humble suggestions are the following;
1. Because this is a residential situation, the contract you have with the PM agency isn’t worth the paper it’s written on. The standard contract they make you sign is “not good”, when you are in your situation. There is a reason why the wording is such, and has been tested over many cases and over a long period. You’re going uphill on this one. Their spiel in their brochure about putting their owners concerns first isn’t quite ringing true right about now is it ??
2. Readjust your expectations of what the PM can and does do. It’s your property, all risk and responsibility will always end up in your lap. Most of your problems originate because you are under the assumption that a PM will manage the property. Perhaps you will agree with me that their job title is a misnomer.
3. Next time assume all responsibilities for all of your properties. That way you won’t get disappointed. The buck stops with you…never the PM…despite their beautifully presented brochures and other legally non-binding gumpf and marketing fluff they hand to you to get you to sign up.
Is it worth taking further??Absolutely not. I’ve been down this road to nowhere with residential PM’s. They take no responsibility – you are the investor – you are the one solely at risk…not them.
Thanks for the advice.
Is there nowhere to go to when PMs do not fulfill their contractual promises? Most professions are accountable for undertaking the responsibilities outlined in their contracts, and contracts are supposed to be binding. It is very hard to keep an eye on your property when you are overseas and the PM rarely replies to your frequent emails.
Most professions are accountableNot sure that a massive 5 day course…4 days x 8 hours per day plus an exam on the fifth day…rightly qualifies someone to call themselves a professional.
Maybe – maybe not…depends on your individual opinion.
In the olden days there were only four professions, Medicine, Law, Engineering and Arms. All of these involved 4 or more years study at a tertiary institution, with many exams and demonstrations of knowledge needed.
Since then, it’s blossomed to the point where anyone with a sticker obtained from the back of a Cornflakes box is accepted as a ‘professional’.
With 5 days worth of qualifications, I’d place caretakers (PM’s) in the latter category, and hence my expectations are very very low of their abilities and often met.
Try lowering your expectations way way down and try again.
Jeez, I’m seeing a pattern here tonight about residential property Owners having trouble with tenants and PM’s. Looks like people aren’t having much joy.
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