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Property manager not doing a final inspection before settlement purchase date

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  • Property manager not doing a final inspection before settlement purchase date

    Have a settlement date coming up soon on a property where the tenant will remain in situ along with the original TA . I would have thought the existing property manager would have conducted a final inspection before settlement . But they deem this unnecessary as I will be managing the place myself.

    What does anyone else think?

  • #2
    Yes, kind of not their problem, they have lost the business.

    Hopefully as part of the S&P documentation you have requested a copy of their last inspection report ?

    You will also have done your own 'Pre settlement inspection' right ?

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    • #3
      There is no right to a pre settlement inspection for this purchase.

      The property manager is required to give you "everything" which is associated with that tenancy. I strongly emphasise this. Everything, to do with that tenancy.

      www.3888444.co.nz
      Facebook Page

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      • #4
        Thanks Keys i will ask them to forward anything remaining. I have a copy of their last inspection report but it is dated August 2017, quite some time back. This property management have ran the tenancies without smoke alarms since they have been managing it for over 2 years! The inspection forms say NO smoke alarms yet nothing was done about it. Unbelievable really!

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        • #5
          Application form. Copies of drivers licence (or other ID), credit checks done. Any correspondence inwards and outwards. Copies of bond lodgment form (if they keep a copy) Copies of all inspections. Just remember. Everything you are required to supply under this section of the RTA, they have to give to you.

          www.3888444.co.nz
          Facebook Page

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          • #6
            Unfortunately they wont hand them over until i become the legal property owner which is not until next week.

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            • #7
              Originally posted by mrsaneperson View Post
              Unfortunately they wont hand them over until i become the legal property owner which is not until next week.
              I had the same spiel when I bought with tenants in situ. In the S&P they’d hand over all paperwork including bond lodgement form upon completion. Not long after signing I smelt a rat and called tenancy services but as I wasn’t tenant or LL, yet, they wouldn’t give me any information. You guessed it, no bond lodged and when it came time, TT ordered me to pay the tenants back their bonds out of my own pocket as the former LL was no longer involved. I took the former LL to small claims but as the S&P stated that he had to hand over paperwork and not the bond itself I lost. There endith the lesson.

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              • #8
                Never ever buy a property with an existing tenant.
                Always - always - vacant possession.

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                • #9
                  Originally posted by mrsaneperson View Post
                  Unfortunately they wont hand them over until i become the legal property owner which is not until next week.
                  Does not matter. Tell them you are the legal landlord (see interpretation).

                  Tell them to hand the documentation over.

                  www.3888444.co.nz
                  Facebook Page

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                  • #10
                    Hi Mrsaneperson,

                    Its not usually industry practice to do that.

                    As long as you get the in going photos, condition report, TA etc then you should be fine.

                    F
                    Fraser Wilkinson
                    www.managemyrental.co.nz
                    Wellington / Lower Hutt / Upper Hutt / Porirua

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                    • #11
                      The in-going photos from the existing property manager or ones that i take myself pre-purchase?

                      I have taken Keys advice and asked for any documentation to be given now, this way I am looking after both existing tenants interests and my own. The lapse of any smoke alarms in the properties since July 206 when legislation came in is a huge indication this PM has not being doing a good job.
                      I have some doubts too that the bonds have been lodged.

                      Comment


                      • #12
                        Originally posted by mrsaneperson View Post
                        The in-going photos from the existing property manager or ones that i take myself pre-purchase?

                        I have taken Keys advice and asked for any documentation to be given now, this way I am looking after both existing tenants interests and my own. The lapse of any smoke alarms in the properties since July 206 when legislation came in is a huge indication this PM has not being doing a good job.
                        I have some doubts too that the bonds have been lodged.
                        For the tenancy it is the photos that were taken when the tenancy started that count - you have taken this over.
                        FJW is sort of implying that tenancy restarts - it doesn't.

                        Of course, if the current condition is fine then you can use that as a starting point. Any stains, damage etc will be treated as pre-existing if you go to the TT (after all, without the original photos etc you can't prove otherwise).

                        Re the smoke alarms - this is a worry. You need to clearly rectify and document that so you don't get ping'd somewhere down track.

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                        • #13
                          Originally posted by FJW View Post
                          Its not usually industry practice to do that.
                          Industry Practice is behind the times and needs to comply with the law now FJW.

                          Thought you might just want to know that.

                          www.3888444.co.nz
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                          • #14
                            Yes been there done that.
                            The useless managers of a block of 5 flats refused to give me the rent schedules. I got it from the vendor who was keen a mustard to get a sale.
                            Found one tenant was in serious arrears. Took over that tenancy and made my own tribunal application. Because I then the named landlord the debt was in my name.
                            I evicted that tenant and enforced the debt. It has taken four years to collect every last cent. So in effect the amount I paid was several thousand less. Sure I had to pay tax on that income but all together the deal has been very profitable. Sure I have done a bit of tidying up here and there but the block is now bringing in 11.5% gross. The rent is slowly being cranked up also so things keep getting better.

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