authorised entry prior to final inspection...

[maddysmum]

My parents own an investment property in Brisbane which has had the same tenant for 8 years and managed by a local property manager.

Recently, they've tried to sell and unfortunately the sale has fallen through due to termite damage. The tenant had been unreasonable in requests for full access ( didn't want to move furniture for thermal imaging) so has been given full notice and left the property.

My parents had asked for me to meet a pest controller, painter, bulider and real estate agent from selling agency at the premises. The letting manager was emailed by my parents to give them notice that I was permitted to collect keys and show these people through for purposes of getting house repaired and relisted for sale. I was given access to the keys 3 days after tenant returned hers.

The house was left in a filthy condition, greasy food on the walls, foul toilets complete with cigarette butts, curtains reeking of smoke, garage reeking of spilled petrol, every flyscreen framed broken, holes in walls. I took 175 photos for my parents including of termite damage and rubbish left in yard, showed trades through, then returned keys. My mum sent an email to the property manager that based on photos sent to my parents, they would like the bond with held for cleaning and damage.

My parents got an email today stating that because I entered the premises before they had done the final inspection, the bond would have to be released and made any claim null and void. oh and by the way, she's been 2 weeks behind in rent for some time now......
That can't be right? I was authorised by the owners and the letting agent had been given notice and signed the keys out to me with full knowledge that they hadn't done an inspection.

They have landlord insurance but that's not the point is it??


Does anyone have any experience/advice with this?

 

[Perp]

My parents got an email today stating that because I entered the premises before they had done the final inspection, the bond would have to be released and made any claim null and void.

Oh, I'd be willing to go to QCAT and defend this one. If they'd let in tradies without your presence, it might be a different story as the tenant could argue that possibly the tradies had made a mess (unlikely as it is), but you were there as the owner's agent - in the same way that the real estate agent (< see that word?) acts as the owner's agent. Therefore your evidence as to the state of the property is as good as the owner's, in the absence of any other party having had sole access to the property.

I don't know if I'd trust such a slack real estate agent to file properly, and they have no incentive because they see no more $ coming from the owner, so I'd be inclined to terminate the real estate agent's management agreement and ask them to turn over all necessary paperwork (e.g. ingoing condition report) so that you can file yourselves.

 

[Lil Skater]

That is unbelievable!!

I want to know why they hadn't completed the final inspection, it had been 3 days and should always be completed within 24 hours at the very most!!

I agree with Perp on this one, and if you do go to QCAT and are awarded nothing due to entry before the "property manager" I'd seek to reclaim costs from the agency for poor practice and not informing your parents of the possible repercussions.

 

[jenni_nextplace]

Very poor on the agents part. I would

1. Email the agent urgently and instruct them to not release the bond to the tenant.

2. I would fax the RTA a dispute resolution request in regards to the bond. This should also help stop the bond being released until the situation is resolved.

3. Then after all this and nothing is resolved. Then go to QCAT.

 

[wylie]

I would bypass the agent and lodge the request for the full bond myself today.

If the agent gets in first, you have a battle doing anything to change it.

 

[Peterw]

Sadly, as the landlord is not a signatory at the Bond Authority, they cannot claim or direct the authority. You should put the agent on notice, that they act under your instructions, and they should under no circumstances release the bond, and they should conduct the usual excite report as they were required to do with in 3 days, and they provide you with a full report together with recommendations on how they are going to have the property returned to you, in the state that it was tenanted, fair wear and tear excepted. You should also put them on notice that you will be looking to claim compensation should they not follow your instructions, and act in the appropriate manner as your agent. You should also advise them that you have taken photographs which will be used to support your claim for compensation.

 

[Perp]

I rang the RTA and Peterw is correct that the managing agent is noted against the bond, but you could submit a form 5 notifying the RTA that the real estate agent is no longer acting for you. (It needs to be backed up with a termination notice, etc.)

Then the landlord can lodge a form 4 - refund of rental bond - themselves.

I note also that the agent only has a maximum of 3 business days to complete their inspection anyway, so when were they going to do it?

The person I spoke to said there's nothing in the Act about whether the landlord entering negates the condition report, but that she agreed that from a commonsense perspective, she's confident QCAT would view no distinction between it being done by the landlord or the real estate agent.

As there is a maximum 3 business day period for the inspection to be completed, it doesn't sound like the RE agent achieved that, then you may have cause of action against them for breach of their duty towards the landlord under the PaMD Act, about which you should speak to Fair Trading.

The landlord could, however, use your photos - taken within that period - as the basis for compiling your own exit inspection report.

Good luck. This amateur hour stuff by some agents is what gives property managers a bad name. Fortunately, there are good ones around.

 

[maddysmum]

Thanks to everyone for your responses! Mum has emailed the property manager and advised them they are not to release bond based in amount of cleaning and damages and asked for the exit condition report to be sent to her to compare their version to my photos.

Over the years, as the rent has been increased from $220 to $320, the bond hasn't been added to so there is only $880. Agent says will be claiming 2 weeks rent arrears from bond ($640) leaving all of $240 for cleaning/ damages?!?!

I love that they've let tenant get behind in rent, leave house filthy AND rented her another of their properties!!! Lunacy!.
Will get onto RTA tomorrow. Thanks again.

 

[Perp]

Over the years, as the rent has been increased from $220 to $320, the bond hasn't been added to so there is only $880. Agent says will be claiming 2 weeks rent arrears from bond ($640) leaving all of $240 for cleaning/ damages?!?!

There is a mechanism for the bond to be increased with rent increases, and the RE agent has been negligent in allowing it to get so far behind.

You're entitled to whatever the cost is for cleaning/damage; the bond isn't a "limit", it's just the amount that you can be sure of getting because it's lodged. You can still go after the tenant in QCAT for whatever the actual amount of cleaning/damages is.