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If you are comfortable with them remaining as your PM then formally request the $2,587 be paid as cash or as a future credit against any expenses. If you not happy with the offer, then contact the states Fair trading Department and lodge a formal complaint. Correct me if I am right in that...

Why is it the tenants fault? They have a legal document issued by a professional company. No point chasing them at the tribunal as you would lose. This is an agency error and one that they must compensate the owner for in full.

I accept your comments but took exception to In this instance seeing that the tenant was able to leave due to an error on your agencies part (notwithstanding human error does happen), why do you believe that it is not your agencies responsibility for the loss of rent and that the landlord...

If the agent is at fault and you are out of pocket then you are entitled to seek compensation from them in full. Detail your request to the licencee in writing with a 14 day payment requirement. Also ensure that the premises are being marketed for a relet.