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  1. #1

    Default Negligent Property Managers resulting in $000's of repairs

    Hi, does anyone know of any cases where a property manager has been taken to court for negligence? I'm currently suing my property manager but have been told by the court that I can't claim for repairs because I would have to pay for them anyway. I can only claim the extra costs I've incurred personally in arranging for the property to be repaired, eg travel. How do you put a price on stress, having to get a loan etc? I live in Auckland and the property is in Rotorua and I only found out about the damage when I decided to view it late last year. When I emailed the Property Manager with my concerns they resigned with no notice leaving me to deal with everything.
    Thanks

  2. #2

    Default Negligent Property Managers resulting in $000's of repairs

    MODERATOR NOTE
    The thread is PM-related, so has
    been combined with this one.


    Hi
    I've just posted a thread under Legal.
    Please have a look at it.
    Last edited by Perry; 15-03-2013 at 10:54 AM.

  3. #3
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

    Will be interesting to here the outcome. I can't help however good on you for taking them to court and I wish you well.

  4. #4

    Default

    It is our only recourse and I don't think I will win but at least PM's will start getting the messge not to mess with Landlords. They have lied through their back teeth to the court so far and not had to produce a shred of evidence. I feel as if I am on trial.

  5. #5
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

    Can you say who the property managers are you have used in Rotorua? Isee you have had issues with two from your last post.

  6. #6
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,719

    Default

    Quote Originally Posted by Satyamurti View Post
    They have lied through their back teeth to the court so far and not had to produce a shred of evidence. I feel as if I am on trial.
    You have to prove the case. since you have posted the accusation here I suggest you keep their name to yourself.

  7. #7
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,560

    Default

    Hi Satyamurti,

    Good on you! I know of lots of landlords who have had issues with property managers such as not lodging bonds, saying the property is empty when actually property managers family is living there, not giving the landlord the full rent (ie say $350 rent but really $380) and lots of other dodgy dealings. These all give property managers in general a bad name, when really it is just a couple of bad ones. Unfortunately no one ever bothers taking them to court.

    I agree that you shouldn't be able to sue for repairs, if they were your cost. But if they are repairs that tenants should have paid, or that should have been deducted from bonds, then the property manager is at fault and they should be liable.

    Why didn't you just go to small claims dispute, as this would have been much more cost effective.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  8. #8

    Default

    Hi, yes I have gone through small claims court. They have a max of $15K you can claim but my costs are well in excess of that. I accept that I have to pay for the repairs but we are talking serious damage that has gone on for a long time that they have ignored. Court basically says I have to prove how much the damage has deteriorated since the PM first noticed it but being as they never noted it during their inspections, then I don't have a starting point. It is pure negligence and how do you put a cost on that!

  9. #9
    Join Date
    Aug 2003
    Posts
    7,579

    Default

    A good thread to remind us that lots of due diligence is required before electing a PM as their contracts will limit any liability for negligence.

    Interesting there's been quite lot of talk re. a bad tenant warning list - sounds like there's a need for a bad PM warning list, though it probably couldn't be made public

    cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  10. #10
    Join Date
    Mar 2013
    Location
    Auckland
    Posts
    1,643

    Default

    The way I see it, a PM's duty is to do a pre-tenancy inspection and document any pre-existing damage. Then during regular inspections, note any further damage and either make the tenant rectify, or, if the damage is serious and ongoing, kick them out.
    If they haven't done this, they're negligent, and I would say, culpable, because if they'd been on the ball, it would have prevented much of the damage being done.
    Also, did the PM find the tenant and perform sufficient background checks?


 

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