Agent NOT Claiming Bond after Evicting Tenant

Lmannu0101 on 11/06/2018 - 13:14

Hi everyone,

Could you please give me some advice on the below matter?

I have an investment property managed by an agent. Since December last year, the tenant stopped paying rent, we notified them to act which they did. After tribunal, the tenant moved out but her furnitures were still in the house. The agent said by laws we had to give her another 2 weeks to remove the furnitures. New tenant moved in in March. So far, we have lost 3 months rent, not saying the tribunal cost and letting fee. I was thinking that the bond would at least cover some of the loss, but that seems very unlikely now. Right after the tribunal we asked about the bond, the agent said she would lodge to stop the tenant getting their bond back. Then when the new tenant moved in, she said she would follow up. Now 3 months later and no bond or any response.

What is my option?

  1. I have landlord insurance with Terri Scheer, if I claim it, how much will my premium rise next year? Is it worth claiming?
  2. Can I take my agent to tribunal and get them to pay for my loss because of their negligence? Has anyone done this?

Thanks for reading.

Home & Garden

Comments

  • Quantumcat on 11/06/2018 - 13:19
    +16

    You should say who the real estate agency is so people can avoid them. Landlords engage real estate agents instead of self-managing exactly to avoid the sort of situation you're in - the agent is supposed to take care of things when they don't go to plan. You've gotten nothing whatsoever for your money!

    • mannu0101 on 11/06/2018 - 13:51

      Sad, but true. Very expensive lesson for us.

  • bobbified on 11/06/2018 - 13:32
    +2

    Do you know if the bond is still there?

    In NSW, tenants/agents can lodge the bond claim form and the other party will have 14 days to challenge the claim. If there's no response within 14 days, the bond will be paid to the claiming party. I wouldnt be surprised if the bond has already been claimed (and the agent perhaps missed the notice).

    • mannu0101 on 11/06/2018 - 13:49

      That’s what I am thinking, the agent has failed to act on our behalf.

      • bobbified on 11/06/2018 - 13:57

        I'm not sure about NSW, but in Victoria you can search the bond number online to see if it's been claimed or whether it's still there.

        • mannu0101 on 11/06/2018 - 14:05

          Thanks. I am in NSW, will try to look for it.

  • Randxyz123 on 11/06/2018 - 14:23
    +5

    Call the agent and ask them again. Tell them you want them to call you back and let you know what's going on…

    If no luck, ask to speak to the managing director. Tell them you want this sorted out and your agent is not doing their job.

    • mannu0101 on 11/06/2018 - 18:14

      Thanks, will do first thing tmw

  • try2bhelpful on 11/06/2018 - 17:03

    I presume you have looked at this site.
    http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owner…?

  • mannu0101 on 11/06/2018 - 18:16

    Yes I have. Thank you

  • TheBilly on 11/06/2018 - 19:02

    Again with the furnitures

    • Third_Gear on 11/06/2018 - 19:20
      +2

      So much furnitures there is.

  • Candour on 12/06/2018 - 07:42
    +1

    with these legal Qs it is always best to go to the authorities and ask them. NSW fair trading office is poor. the vic one is better now that I have moved there.
    but ask NSw fair trading advice and follow their law.
    change agents.
    it is better to do so.
    ask new agents what they would do and vet them on their answers.
    see how professional they are and change to one.

  • Stevek1960 on 12/06/2018 - 09:26
    +4

    Get a new agent and fast

    • Yola on 13/06/2018 - 11:25

      I agree but I would consider the timing carefully. You may get more from the agency if you are still a client. It will be easier for them to waive management fees/re-letting fees than make a cash payment. I have certainly known companies to do this. If the agency is part of a franchise you may be able to complain to their Head Office.
      I had a very similar situation. My Property Manager left the agency and coincidentally the tenants got behind with the rent. I was away on holidays when I returned and rang the agency I was informed she had left. The person then said agent B was my Property Manager when I rang B she said the previous person was. They did not even realise the tenants were behind with the rent or who was looking after the property.. Duty 101 of Property Managers. By the time it was resolved I was out 3 months rent. At least they did get me the bond but there was some damage and with the missing rent I was still over $2,200 out of pocket. I complained to their HO and they asked their franchisee to investigate. I also complained to Consumer Affairs in Victoria who refused to take any action. I must admit I changed agents by this time. Eventually they gave me $500 to go away and not bother them - basically. You should write to the licence holder (CEO/MD) and HO if it is a franchise. It is easy for them to ignore phone calls. Advise them you will go to consumer Affairs/social media if it is not resolved. Quote sections of relevant legislation so they know you know what you are talking about.
      I would claim on your insurance otherwise why have it. You need to check if there is a deadline. The policy may require you report this to the police. Your agent should be doing this. If your premium increases get quotes from other companies. I do not have landlord insurance, it is expensive. The Property Managers want you to have it so you can be compensated in cases like this when they do not do their job. I must say my property is run down. Please report back on what happens with the agent and insurance. Good luck.

      • mannu0101 on 14/06/2018 - 09:07

        Thanks. I will report back once the case is done.

        At the moment, we are still waiting for the agent, she said she had contacted the Bond place, but they had misplaced or not received her paperwork.

        • Yola on 14/06/2018 - 10:28

          Yeah, and the cheque is in the mail…

  • gth on 12/06/2018 - 09:30
    +2

    Ask the agent point blank if the bond is still being held, or if they are trying to reclaim money off the tenant directly.

    My guess is they missed the bond claim, are making a token effort to call the tenant - enough to say they tried (reasonable effort etc) - and are never going to get you any money.

    Some property managers have no interest in conflict or ever getting off their ass. If you're not getting 360 photos of every room after every inspection this day and age, your agent is lazy and behind the times.

  • HeWhoKnows on 12/06/2018 - 11:25
    +3

    I would demand the bond back from the agent or that they reimburse you for the same.
    Its thier job to claim all the bond money in this situation.
    They are not doing thier job.
    They should also not charge you for a reletting fee under these circumstances but thats more principle than law.
    You should also demand a refund of all fees paid since they are not dointg thier job.
    Complain to the principle/lisencee first. If no luck call the Dept of fair trading
    In a nutshell the matter should never have proceeded so far.
    They should have submitted a Notice to Quit to the tenant as soon as rent was 2 weeks in arrears and following up with a tribunal hearing after a further 2 weeks when their notice period expired.

  • SlickMick on 12/06/2018 - 21:54
    +2

    Recover what you can from the agent, then sack them.

    We just recently sacked ours. I just rang the tenant and said I was no longer willing to work with the agent, and would they be if we self-managed. Tenant complained about agent too and was more than willing.
    How much harder is it for you to call a tradesperson if necessary than for agent to do it?? You just need to be willing to check that rent is paid, and keep a rental ledger.

    You can pay an agent just to find a tenant for you, but we got heaps of interest through facebook. Just check prospective tenant's previous rental ledgers and I can't see that the agent is adding any value.
    It's so much better now that we have a relationship with the tenants. You can be friends, but just keep it professional that late rent won't be tolerated and you (or somebody) needs to do regular inspections to avoid disasters.

    As you've experienced, using an agent doesn't remove risk. Unless you find a good agent. You might consider a good agent is worth what they charge. The one you have isn't.

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