Note this is also posted as a reponse in a forum re Moranbah as this is where the property in question is located.. have edited this slightly to be relevant to this subject
I have had a nasty problem with the managing agent in QLD, I live in NSW. Not sure if this is just back luck on my part or I am being taken advantage as I live out of the state and the deception was less likely to be found out ??
long story so heres the short version.
1. My monthly rental statements show the tenants being paid up as they should be. Tenants gave notice that they would vacate 28th May 2010.
2. rang the agency the week before tenants moved out to find out if they had stop paying rent etc ( as they can sometimes do in the last week or 2 before moving out ) to be told by the girl answering the phone that the rental arrears was to the tune of 2 months !!! I rang about the 3rd week of May 2010 and was told the rent was paid up till 21st April 2010.
3. I know you are asking why didn't I notice the money not coming in? Well as the rents are big ( $760pw ) a missing $50 this week, $20 next week wasn't noticed. The rental arrears goes back to April 2009 when they where 1 week behind!!! yep thats right.. more than 12 months in arrears with it increasing slowly over time.
4. Yep I BLEW up… no breech notices sent .. nothing… the principal agent still has not spoken to me to explain, but I do have emails. No explanation at all as to why the rental arrears was allowed to start let alone increase to 2 mths.
5. I have it in writing that the agency will make up the short fall – they know they are in breech of The Code Of Practise so its easier to pay me than me to go Fair Trading. Not that this will get them out of the problem as I intend to make it known my problem to other investors as I am sure if I hadn't asked I the question in the 1st place and gotten the right person who innocently answered my questions I would never have found out and been out of pocket over $6K !
Suggested solution for the future – I will be asking all my managing agents for a copy of the tenancy ledger say twice a year.
PS new managing agent lined up to take over as soon as the funds are clear in my bank this week !!!!Jo-Anne
Definitely sounds dodgy and it seems like you have them on the back foot.
Upon review of my statements I inevitably find charges that are inaccurate or should have been handled by the agent, but NO ONE CARES ABOUT YOUR INVESTMENT AS MUCH AS YOU DO – accountants, real estate agents, tradespeople, anyone! Always do a check of what ends up in the bank and account for anything missing.
In dealing with an agent that are remote I have also found that they are more likely to make decisions on your behalf and blame the distance. It's just one of those things you need to account for when having remote investments.
Anyhoo, sounds like you are doing the right thing in dumping them. All the best.We have been using them for 4.5 yrs and up till now ( well april 2009 ) , no probs…
very disappointing they dropped the ball and failed in their duty of care.. the hard part with this was by the monthly statements all rent was paid… so its deception by their part as to the rental arrears.. I had no way of telling until I asked then requested a copy of the tenancy ledger which shows the truth.cant wait to be rid of them… ended up using flyers at mine sites to get my own new tenant, and they will take 1 weeks rent for that too… but its all for long term gain.. $6K in my bank not theirs. My this time next week they will have a 30 day termination notice as my managing agent.
Yes the only person who really cares is the owner, but when u pay a premium of 10% managing fees ( closed market and they know it when they charge ) you do expect something back for it. They have a large number of properties they manage in that area… so I hope they are not doing this to other investors as well.. look after the locals at our expense !
very disappointing they dropped the ball and failed in their duty of care.. the hard part with this was by the monthly statements all rent was paid… so its deception by their part as to the rental arrears.. I had no way of telling until I asked then requested a copy of the tenancy ledger which shows the truth.You must be logged in to reply to this topic. If you don't have an account, you can register here.
