Agents portion from landlord insurance

[giraffez]

My tennant has failed to pay rent and has been evicted. I have landlord insurance to cover but I'm wondering what do i need to pay my agent in terms of commission for the weeks owing?

I don't feel its fair if i had to pay from the insurance i get back because I pay for the premiums to cover myself, not the agent.

If the agent wants to hire debt collectors and all on my expense to retrieve the outstanding amount can I refuse as my insurance should cover me for the outstanding amounts, i shouldn't have to add additional expenses on top of the excess I need to pay to get the money back.

 

[luckyone]

I thought they just collect on rent paid, if no rent's been paid surely they can't collect?

 

[Propertunity]

I thought they just collect on rent paid, if no rent's been paid surely they can't collect?

Exactly!

They get paid a % of what they collect only. You may be in a situation where you are uninsured (you aren't) and so they'd be in exactly the same position.

You are too soft

 

[giraffez]

Oh i hope this is the case!

They wanted to continually pursue with tribunal hearings and debt collections which gets nowhere at my expense. Could they come back and say since you told us to stop the recovery, you now owe us $X in commission?

Took 2 weeks to get a date for sheriff and another two weeks after payment....so frustrating. Understand this may be out of the agents control but these things must happen quite regularly and it was like jumping through hurdles each time something had to be done.

 

[Propertunity]

They wanted to continually pursue with tribunal hearings and debt collections which gets nowhere at my expense.

If you read your LL insurance policy wording I think you'll find that you need to pursue the tenants at the Tribunal and recover what you can from them to lessen the liability of the insurance company. The agent was probably doing the right thing.

Could they come back and say since you told us to stop the recovery, you now owe us $X in commission?

NO. Read your PM agreement.

Took 2 weeks to get a date for sheriff and another two weeks after payment....so frustrating. Understand this may be out of the agents control but these things must happen quite regularly and it was like jumping through hurdles each time something had to be done.

This is just the normal due process. You need to stand back and let them all do their job. Presumably they have done it many times before.

 

[giraffez]

If you read your LL insurance policy wording I think you'll find that you need to pursue the tenants at the Tribunal and recover what you can from them to lessen the liability of the insurance company.

So how much is enough? they have been ordered to pay by tribunal more then once and never have. They have now been evicted and I still need to persue knowing from the past couple of times I get nowhere?

 

[Propertunity]

So how much is enough? they have been ordered to pay by tribunal more then once and never have. They have now been evicted and I still need to persue knowing from the past couple of times I get nowhere?

Ask your insurer what they require of you.

I understand where you are coming from. My personal preference is to end up with a court order so you can either:
1. Ruin their credit rating
2. Attend their next property with the sherrif and start repossessing their stuff

 

[Sez]

As a PM I have never chased a LL for management fees for rent which wasn't collected. If you were paid by the insurance company take it and wait and see .