Agents liabilities ????

Guys, I need some advice. I recieved a call from my managing agent today to update me on the condition of one of my investment properties post tenants moving out. He informed me that the house is a mess. Blinds have been all but destroyed, carpet in two rooms will need replacing and a good clean inside and out. I initially was fairly concerned about the damage given the house is only 5 years old. But to rub salt into the wound the agent then proceeded to tell me that 12months ago apon moving into my property the tenant was not required to pay a bond. He could give me no explanation as to why any tenant was aloud to move into my property with paying a bond. I defiantly did not approve for the bond to be waived.
My question is: is the agent liable for the $1450 that should have been held in bonds trust? Obviously I am insured, but as per most policies the first 4 weeks rent ($1360) is expected to be coved by the bond and they will only cover damage amounts that exceed this amount. Less the 500 excess of course.
So given all that, worst case is I am $1860 out of pocket.
Very disappointing to say the least. Any advice would be greatly appreciated
 
They need to legally pay a bond. I've managed most of my properties and I'm a 100% certain you need 4 weeks rent as bond to be lodged no matter what state or territory the ip is in. Are you in NSW? I'd be double checking they didn't pay a bond otherwise the agent may have taken it. There are quiet a few articles out there about agents helping themselves to clients money. Hope it gets all sorted for you :)
 
Very disappointing to say the least. Any advice would be greatly appreciated

Well do you remember instructing the agent to take a bond? What do you remember from the start of the tenancy exactly?

Your post is big on what the agent has apparently done wrong, but not so detailed about your involvement with the situation.
 
I signed reiv lease agreement that stated weekly rent amount and a bond of one months rent. I have had investment properties for 8 years and have never had a bond not collected before.
 
My understanding was that a bond was not required in Queensland if both parties agree. I just lifted this from the "bond" area of the site -

At the start of a tenancy, a tenant may be asked to pay a rental bond. This is lodged with the RTA until the end of the tenancy.


I know we have one tenant where we are not holding a bond.

Still, for an agent to make that decision for you is not right.
 
I signed reiv lease agreement that stated weekly rent amount and a bond of one months rent. I have had investment properties for 8 years and have never had a bond not collected before.

Well isn't that your answer then? Ask your agency why it wasn't done in accordance with your contract.
 
So given all that, worst case is I am $1860 out of pocket.
I hope you're with one of the better insurers. Many of them would consider the damaged blinds as one incident, lack of cleanliness not covered, each hole in the wall a separate incident, etc, and apply an excess to each. :eek:
 
Was the tenant also in arrears? Water invoices overdue that also need to be deducted from bond?

My experience is that when tenants don't look after the house, they are slack in paying rent also.

Water invoices are not claimable against any insurance policy - only bond.
A good landlord insurance will cover everything else, however that is not the point. There is no law to take a bond but an agent has a duty of care to always take full bond before keys are handed over. Why didn't they?

Yes they are absolutely liable and I would consider this negligence. Are they offering to cover the expenses? Ask them to!
 
Your Authority with the agent should note if and what amount of bond is to be charged. if the agent has not acted under the authority they would be liable
 
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