Help Strata Levy in Arrears because of Property Manager/Strata Manager

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  trustnoone on 05/04/2018 - 20:04

  +1

  Honestly never dealt with this before so this is more of an opinion then anything else, but renting a place with strata now, and this place here feels a bit dodgy, so far so I get this feeling that they'd do whatever they can get away with. Luckily I haven't had any issues, but all they seem to do here is try to find people they can fine.

  End of the day I'd definitely agree strata fault but likely agent won't push it because they know strata will make their life hell whenever they try to show it off to prospective tenants or buyers (including getting building access, going in for inspections or getting handymen in). Agent obviously would prefer not to have to deal, especially since they're essentially using your money to pay it anyway.

  Definitely a shame but if your place is like mine, most likely you'd have to push it pretty hard (or get a lawyer involved?) which then they may start changing their tune, but from there on out you have to hope you have no issues with your room.

  • 

    charkwayteo on 05/04/2018 - 21:50

    Yeah good point, lawyers are expensive and I'm no law expert so I'm questioning the strength of my case. Definitely won't want to be dealing with any more possible issues if I do take some kind of action. Aside from thisthe block has been fine for the 4 years I've owned it when the majority of time I was staying in it.

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  PAOK11 on 05/04/2018 - 20:24

  Wait a second, the agent can not pay the strata with your rent money ? Especially not without your permission?? 1k debt collection fee is absurd never heard of anything so ridiculous in my life. This sounds like a racket to me.

  • 

    charkwayteo on 05/04/2018 - 21:54

    I signed a contract (basically hiring) with the agent that lets them pay rates and strata. They missed payment on 3/4 of a year worth of strata, so strata sought after a debt collection agency to come and find me to tell me to pay up. I paid up but the debt collection agency forwarded the costs of their service onto me, I did not pay this, strata paid it. But then strata charged me.

    • 

      PAOK11 on 05/04/2018 - 22:24

      Why did you pay the 2.4k ? or do you mean through your agent ?

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  garetz on 05/04/2018 - 20:30

  +3

  Your in a catch 22 situation, you gave the real estate agents authority to pay the strata bills, the strata agency billed the real estate agents, and on your authority they paid the debt collection fee.

  You can take the strata company to small claims court, thats about it, it would cost you more than 1k in legal fees, and then i very much doubt you would win.

  The lesson you should learn from this, is never give anyone else authority to pay your bills and if you do, recheck every month that noone is making mistakes in your name, cause if someone can screw up they usually do.

  • 

    charkwayteo on 05/04/2018 - 22:07

    I agree 100% I'm going to now pay the bills myself after this screw up. I initially thought letting them handle the bills would have made it simpler for me to do tax since I get the net amount after all the expenses straight from the agent into my account.

    I know lawyers are expensive but it leaves a bitter taste in my mouth to have to pay for a couple third party screw ups.

    as I see it the faults of the three parties are

    Me - Not being diligent with month to month actions of the agent, basically not supervising them
    Agent - Managing the property and not realizing they missed 3 strata payments
    Strata manager - not sending the bill to the right place

    Even say the agents did not pay the arrears, I would have been accumulating exorbitant interest on the amount owing and probably would eventually be taken to court myself by Strata. If I was confident I was in the right I would not worry, which morally I do feel so, but legally is another matter.

    • 

      kingmw on 06/04/2018 - 07:37

      I pay all of my bills (most of them email now instead of send a physical copy - Syd Water, Strata) and you can set up direct debit to make it even easier.

      The additional benefit besides peace of mind is that if your agent is bad then you can change quickly with minimal hassle.

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  AlanJ on 05/04/2018 - 22:04

  +2

  While it's clearly the strata manager's fault for not acting on the advice of the agent with whom you signed, what surprises me (if I'm reading you correctly) is that the agent then proceeded to collect rent, and pay the rates, and (of course) charge you commission, and never once tumbled to the fact that they weren't receiving any levy notices for your property. It's the most significant expense they have to take out of your rent, and they have to take it out every three months. While they were doing this for the other 7346238 properties they manage, they never realised that they weren't doing it for this one unit? Frankly, that's not good service, and at least part of that collection fee should be THEIR responsibility. I bet they didn't forget to charge you their own 5.5% of every rent payment they received! As garetz pointed out, you are unlikely ever to see your 1K again (though your agent may, if he's honest, decide that goodwill suggests a refund of the management fee you've been paying so far; you ought to request this, and now!) but, as a matter of principle, I'd be giving that agent the flick and approaching the agency down the road…. and, what's more, telling the new agent exactly what's been going on.

  • 

    kingmw on 06/04/2018 - 07:45

    The agent like you said unfortunately manages multiple properties and some will have water rates only or some will have strata rates only and you will not be able to keep track of who wants what paid.

    Their duty of care was to get the strata manager to update their records which they have proven. Beyond that is the strata manager's problem.

    Unfortunately, the OP as the owner ultimately has the responsibility to make sure that all the bills are paid regardless of whether they are using an agent or not. i.e. A tax agent is not responsible for any errors or tax owed on your annual tax return, that responsibility is the taxpayer's.

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  Ayanami on 05/04/2018 - 22:43

  $1000 debt collection fee? What authorises the strata body to pass that on? Unless it's in your by laws or some sort of an agreement they're not entitled to charge it. That said, it's been paid now so to get it back you'd have to take them to court.

  Might have to chalk this up to experience unless you're inclined to go to court yourself; certainly not worth engaging lawyers.

  • 

    airzone on 06/04/2018 - 01:10

    +1

    The bylaws will typically state that debt collection costs are passed onto the owner owing the debt. $1k is pretty rich though… It's normally a few hundred.

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  mrsi on 05/04/2018 - 23:40

  +1

  Strata can and does have the right to charge the overdue debt collection and late fees to your account, and you are legally liable. Can you imagine the kaos if people could get away with not paying their levies with no consequences? I know that's not what you planned to do, but strata can legally charge you for this.

  I'd be going for the real estate, their responsibility to prove they really did change the billing address and why didn't they notice?

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  ansonff on 06/04/2018 - 01:19

  It is now too late to do anything in this case. But if I were you I would definitely fire the Manager and seek a new one. Also would name them on internet so that they can learn a lesson.

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  niknah on 06/04/2018 - 08:12

  Keep all the documents, emails in one place. Send a letter of demand, you can get a sample one from the internet.

  If nothing happens, go to small claims court.

  Pay your own bills. It can all be done via the internet.

  My previous manager paid the water bills late every time. It was only a few cents or dollars in fees but it was annoying. I called up the water people to send the bills to my place instead.

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  timmypete on 06/04/2018 - 09:02

  It'd be really helpful to know what state the rental property is in. You're otherwise going to get some pretty questionable suggestions.

  In Victoria debt recovery actions against lot owners generally need tribunal approval (i.e they can't be pre-emptively issued like it appears have happened here). A 4yo legal article seems to suggest it is the similar in NSW where your profile is listed.

  You also said you transferred money to the agent, who paid the bill. Did you give verbal or written instruction to pay the levy only, and not the debt? If they've ignored a prior instruction I would be telling them reversing the payment is their number one priority.

  Be very careful of exacerbating this with threats and bluster, but the next escalation steps are a professional conduct complaint to the agent regulator (in Vic agents are registered, but property managers not necessarily so) or the professional association, and finding out what the termination provisions of your agreement are (you might be stuck for a while).

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  [Deactivated] on 06/04/2018 - 09:03

  Make an appointment to discuss this with the Director of the strata company.
  They may not be aware their ceorl are stuffing up.

  • 

    retiredfeline on 06/04/2018 - 09:06

    Wow new word for me today.