Need your advice – our tenant moved out in March this year and she still owes us $750.
Initially this person’s brother in law was renting from us. Our tenant moved in a couple of years later and our property manager neglected to change the bond over into her name. Now there is $600 in bond money which no one can touch as the brother in law is saying that our tenant never paid him the bond money. She is saying that she did. So he is not going to sign that money over to us – so it’s just sitting there.
Our property manager has been chasing this $750 since March to no avail. The tenant is now being subjected to a means inquiry. We have to pay $53 for this to be done – but apparently will get reimbursed if she pays us the money back.
Is there anything else we can do – especially re: the bond? Or should we just forget about it and move on?
Thanks, Mei
Hi Mei
I would have thought that if the initial rent agreement was in the brother in laws name and it had not exipred to date, that he would be liable for any rent defaults no matter who was living there.Who’s name is the current tenancy contract in?
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
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phone 0412 437 582If the agent issued a new lease in the new name but didn’t change the bond, I would think it is up to her to pay you and fix things up her end. I’d lean on her to fix it.
If the lease was never changed to the new tenant, then the original leaseholder would still be responsible for the bond. Again, the agent has made the error, and should be made to pay you and then chase the funds to reimburse the agency.
I am only guessing some things here, but you have paid an agent, who has (it seems) not done the proper paperwork. I would lean on her hard to fix the problem that she caused.
We manage our properties ourselves, and always stress to tenants who may move out that it is important that they get themselves off the lease because while they are on the lease, they can be held responsible for rent and damage. Similar for the bond. Sometimes with singles, it can get messy, but we follow it up to protect ourselves and your agent has been slack.
My thoughts, Wylie.
Hi Guys,
Thanks for your replies. Yes the agent did issue a new lease to the new tenant but did not change the bond over to her name.
The problem now is I can’t p*** the agent off as we are due to get a $3000 GST refund from them as the ATO recently passed a ruling stating Aussie expats did not have to pay any GST from 2000-2005. They are not obliged to refund this money but are willing to so I can’t afford to annoy them atm.
The agent said she wants to sort out the tenant problem before sorting out our refund.
Not sure how to proceed.
Any ideas?
Thanks, Mei
Well that adds quite a new slant on things doesn’t it ?? Anything else relevant to the situation…’cos that 3K GST refund was a biggy, and makes the whole handling of the bond situation by the PM make perfect sense now.
I’d suggest the agent has you completely over a barrel, and therefore you have lost all control in the matter. Your PM and her agency / principals are in a very strong position…just the way they like it when dealing with Owners.
It looks like they’ll try for the bond, but if they don’t have any luck or it drags out, they’ve got your 3K to drawn upon. Beautiful situation for them. I’m not surprised your PM is saying she wants to “sort it out” before giving you your 3K.
As with all people in a situation where you have not a jot of control, pointless asking the forum what you should do…simply smile and take what’s coming to you. When everyone has ravaged the pot of money and taken what they deem to be correct, you’ll be left with whatever is left.
Too late with this one…eat the cost and take the lessons learnt. Gotta love those ‘caretakers’.
Big question is – do you plan on putting yourself in this situation again ??
Dazzling clarity.
cheers
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Hang on, if the ATO has passed a ruling about the GST then whya re the agents “not obliged” to refund it? Someone must be obliged, either them or the tax department that has received the GST that was collected.
I’d look into this further, at the actual ruling and not at what the agent is telling you.
Good Luck
PKHey Guys,
Firstly Dazzling — yes I should have said about the 3k refund in the initial post – was distracted by a crying baby and had to cut it short…. not all of us have hours to surf the internet everyday – like your goodself!!!! I just read a post where you had spent the last 90 minutes surfing for commercial property! You must have alot of time on your hands. [blink]
Secondly – purplekiss – yes for $3000 I sure have done the research and this is what is on the ATO website.
DO I HAVE TO REFUND MY CUSTOMER?
If so, what do I do?
Under GST law, you are not legally required to provide a refund. However, you may be required to provide a refund under other laws that apply to your situation. For example, any reimbursement you provide is a contractual matter between you
and your customer.If you choose to identify these customers, you may not have to bear the cost of the GST refund. This is because the GST you collected and paid to us may be refunded to you.
As you are the person who paid the GST to us, we cannot directly reimburse your customer for any GST that you overpaid.
We can only refund the overpaid GST to you after you have reimbursed that amount to your customer.
2 HOW DO I PROVIDE A REFUND TO MY CUSTOMERS?
If you decide to reimburse your customers, the method you use is your business decision to make. We do not expect you to follow any specific process. However, if you choose to reimburse your customers, it is important that you do so before
seeking a refund from us.You can choose to give a refund to the customer who paid the GST to you by providing either:
†a credit note to an existing customer (a credit note will only be acceptable if it is reasonable to expect that you will be able to honour this in the foreseeable future), or
†a refund to the customer.
We have only received verbal confirmation that they are going to refund us. Nothing in writing.
I was thinking of telling them we are not interested in chasing the $750 from the tenant so they can get moving with the GST money.
When we have the $3000 safely in the bank I was then thinking of fighting for the money as it was their fault they did not change the bond over?
I know Dazzling thinks this is a hopeless situation but anyone have any thoughts on my plan?
Mei
Firstly Dazzling — yes I should have said about the 3k refund in the initial post – was distracted by a crying baby and had to cut it short…. not all of us have hours to surf the internet everyday – like your goodself!!!! I just read a post where you had spent the last 90 minutes surfing for commercial property! You must have alot of time on your hands. [blink]Don’t get stroppy Mei, just ‘cos I called it like I saw it. You asked for advice. Your initial post didn’t make any sense at all, but the second one with the 3K refund brought everything into crystal clarity.
In your initial post you said “anything else we can do or should we just forget it and move on”. Well my suggestion was forget it and move on. Obviously you didn’t really want to hear that. Harsh reality in the business world is sometimes hard to accept…
Also, what I do with my time Mei is absolutely no concern of yours or anybody else. You’ll note in my post in was the first time in 3 months I’d had a chance to peruse the boards. If that perturbs you…tough.
I was under the impression the point of this whole investing caper was to free up time ?? If I am in that position to enjoy 90 minutes researching further cash deals, then so be it. I shall continue to spend my spare time as I see fit, without fear or favour.
We have only received verbal confirmation that they are going to refund us. Nothing in writing.I was thinking of telling them we are not interested in chasing the $750 from the tenant so they can get moving with the GST money.
When we have the $3000 safely in the bank I was then thinking of fighting for the money as it was their fault they did not change the bond over?
I know Dazzling thinks this is a hopeless situation but anyone have any thoughts on my plan?
PM agencies don’t work like that Mei. They are quite business savvy and will not expose themselves to that which you allude.
Look, you’ve been stiffed by recalcitrant tenants who do this all the time. As a residential Landlord you are exposed to this risk…this time the risk came to fruition. Chase them through the courts if you so please, but you’ll get nowhere, as others have found. Eat the cost and move on.
In the future I shall not bother you. Sorry for calling it like I see it, after being requested by your goodself to do so !!!
I’m not stroppy! Who said I was stroppy!!![chill]
And no I don’t really care what you do with your free time – just making an observation.
I for one are glad Mr Dazzling has free time to impart his plethora of knowledge.
Keep it coming oh guru.
I woulnd’t tell them not to bother about the $750, i just wouldn’t chase it at the moment. I’d concetrate on the $3k and only after receiving that then I would write to then that you are unable theat they have made an error with the bond and feel it is their responsibility to sor the situation out, perhpas even suggest they shoudl foot the bill. If you verbablly say you’re not worried about it then you’d need to let it go as technically you have then entered averbal agreement about it, so I’d just try to say anything or I’d simply say I’m not happy about it and leave it at that until you get your 3k.
If they then don’t pay the bond to you (however they choose to sort it), then I think you are within your rights to cancel whatever contract you have with them to manage the property.
Well, that’s the way I’d go, chase the big bucks first and then follow through with the smaller stuff later.
Good Luck
Regards
PK
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