Dodgy Property Manager

[snow]

Hi All

I've given the old property manager the flick. Problem is the tennant is overseas at the moment (unable to be contacted) and will be away for a few months and is still paying rent into the old PMs account. They will not pay rent money collected apparently because there is no management agreement in place. Sounds really dodgy to me.

Thoughts anyone?

[spaceman]

Theft

If the PM retains money paid to them in error and they are aware of it, then surely it's some form of theft.

Sic the coppers onto them

Cheers
Spaceman

[Glenn]

Piece of cake.
You serve a notice on the tenant instructing them of the change of landlord and the change of bank number they must pay the rent to. Do this by attaching the note to the front door and take a date stamped picture of it. This is then counted as served.
Then immediately serve a 10 day notice on the tenant same way. Then take the tenant to court for not complying. There is after all no way you can know if the tenant is actually paying. I would think most property managers would instruct the tenant to stop paying once they had been terminated by the owner. Evict the tenant and the tenant can take the old landlord to court.
Just get on with your life and wait to see what happens.
The key to succesful property investing is to move on from problems. You have to stop the losses. Some eggs will be broken along the way.
Civil cases are not about who is good or bad. It is about who owes who some money.

[xris]

I like the simplicity of Glenn's solution.

Once you have done this and if the pm refuses to hand over your rent money they have in their trust acct, you will have a civil claim against them as suggested. A quick thought is "can they now deduct their management fee, seeing as no agreement exists."

Anyway, to my point.

You may be able to pursue the pm through the TT, not the DT or district court. The TT has juristriction on tenancy matters that do not necessarily have to be between tenant and landlord. Landlord versus landlord is possible. This might be a much easier and cheaper solution for you.

xris

[Glenn]

thanks for that Xris.
My comments were not hypothetical.
I have had more than one ditched Property Manager that was not too happy about giving me the keys and details of the tenancy. Generally this happens (change of PM) when the Pm is not handling a difficult tenant very well. So again the slippery tenants will throw up a cloud of objection also. Unfortunatly Tenancy Services call centre do not help either. I have had them tell tenants they do not need to pay the new PM until the old one advises them. This is in clear contravention of section 15 of the RTA. Unfortunately there is no penalty for wrong advise.

So again always follow the RTA to the letter of the law and keep good records / evidence of what you have done so that you will win in Tribunal.
The mediators keep in close contact with the adjudicators but they do have different opinions form time to time.

[snow]

Piece of cake.
You serve a notice on the tenant instructing them of the change of landlord and the change of bank number they must pay the rent to. Do this by attaching the note to the front door and take a date stamped picture of it. This is then counted as served.
Then immediately serve a 10 day notice on the tenant same way. Then take the tenant to court for not complying. There is after all no way you can know if the tenant is actually paying. I would think most property managers would instruct the tenant to stop paying once they had been terminated by the owner. Evict the tenant and the tenant can take the old landlord to court.
Just get on with your life and wait to see what happens.
The key to succesful property investing is to move on from problems. You have to stop the losses. Some eggs will be broken along the way.
Civil cases are not about who is good or bad. It is about who owes who some money.

Thanks for the advice Glenn, didn't think you where being hypothetical either. I was hoping though it wouldn't have to be this drastic, the guy has been a long term tennant and always a good payer. I don't fancy having all he's possesions thrown out. But as you say................Next! lol

[snow]

I like the simplicity of Glenn's solution.

Once you have done this and if the pm refuses to hand over your rent money they have in their trust acct, you will have a civil claim against them as suggested. A quick thought is "can they now deduct their management fee, seeing as no agreement exists."

Anyway, to my point.

You may be able to pursue the pm through the TT, not the DT or district court. The TT has juristriction on tenancy matters that do not necessarily have to be between tenant and landlord. Landlord versus landlord is possible. This might be a much easier and cheaper solution for you.

xris

Well the ex PM did agreed to credit the new PMs account with overpaid rent without deducting fees but this hasn't happen. I'm not suprised though they re-negged on their promise to hand keys and files too and still have the audacity to abuse the new PM when requested to do so.

[xris]

Thanks for the advice Glenn, didn't think you where being hypothetical either. I was hoping though it wouldn't have to be this drastic, the guy has been a long term tennant and always a good payer. I don't fancy having all he's possesions thrown out. But as you say................Next! lol

I remember afew years ago I had a responsble honest male tenant about 30 years old. He minded his own business and paid his rent. Good! At the end of the tenancy I did something 'matey' and helpful, letting my guard down a bit by not sticking to the letter of the RTA. He did nothing dishonest or wrong, but at the end of the tenancy 'on of those things' happened which meant I had tofall back on a more by the book approach. (It involved his walking out of the house at the end of the fixed period when I was on holiday. He had earlier told me he would stay on for a month.) I got burnt and taught a lesson.

My advice is do what Glenn says - get rid of him even if it makes you feel uncomfortable and he has done nothing wrong. And don't forget he has a responsibility too to let you/the pm know how to get hold of him.

xris

[snow]

Thanks for the replies one and all. Got some good news, tennant has come back from OS earlier caught up on his rent immediately. The ex PM is refusing to refund about a months rents paid into the ex PMs account, I've told him to apply thru the tribunal.

Xris I too have been burnt by doing favours for tennants and so has every landlord I know. One sucker punch always lands when you let your guard down even for seemingly nice people.