Hello Everyone =]
Ive joined up to talk to people about property investing as I realised i dont really have any experienced people to speak to.
Anyway, first post, I have a small query that I was hoping someone might know the answer to.
the latest statement from my property manager included a fee for:
Funds Withheld – Funds Held for Court Application Costs.
When I queried the agent as to what court costs it is specifically related to I was told that:
It is held and carried over in the event we need to apply for court.
It is a nominal amount…. but It just seems a little crazy to charge us for "in the events" why cant they just pay invoices as they come up like with a plumber, electrician etc etc
if they were to keep doing this i would have to keep track of it all to make sure we get it back 'in the event they dont' have to pay for these things….
change the clause before signing then – you are employing the property manager! – remember that most managers want your business and are negotiable to small changes to the contract
Personally I find that a ridiculous response from the agent. As the money sits in a trust account, it is your money and the agent is required to seek your advice as to how they should persue a defaulting tenant, not withold money just in case. Are they aware of an issue already?
Well that's what I'm getting at, it really does seem ridiculous to me too.
sure the amount is so little its barely worth discussing but id rather not set a precedent.
there has been no mention of any court costs, everything is fine with the tenant and ive heard nothing through the strata.
they certainly havent mentioned any court related costs, i did ask and that was all i got back.
I cant see any real need to 'withhold' money. As any costs can just come straight of the rent when they are required?
just like with any other normal cost.I am tempted to 'tell' them that they will give that money back and that they will not 'withhold' anything further without consulting me first.
the only thing stopping me is incurring any 'bad blood' by doing so.
havent decided yet….
I've found in the past that it is very possible to handle such a matter without incurring any 'bad blood' if you do so in a professional mannner. Try a personal phone call to the property manager themselves (not the office girl), and explain, in a pleasant manner, what you would like done. Try to address the issue in a manner that does not make the property manager feel under attack.
If this happened to me, I'd be querying just what sort of tenant they have placed in your property and wether they are expecting a problem. Then, make sure your insurance is up to scratch.
In 8 years, I haven't had a tenant problem requiring court intervention (touch wood). I use a professional property manager who is instructed to let the property to their very best tenants, at slightly less than the rate that could be obtained from a marginal tenant. The property manager has been given very specifc instructions about who can rent the property, and these instructions are probably a violation of the antidiscrimination act.
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