Baby's done a bad bad thing! HELP!!

[slingshot]

Hi all,

I haven't posted for a while, just a bit busy I think. Hope you're all well.

There has been a small disaster close to home and I wonder if anyone has any suggestions.

Someone close to me (who is a licensed pm) has done a very silly thing.
Out of the goodness of her heart she let a property from her rent roll to a "friend" without taking a bond as the "friend" was in a bit of a fix. Illegal I know but thats whats happened.
Since then the "friend" hasn't payed a red cent for 2 months, and to add insult to injury, has now done a runner leaving the place a shambles and my friend 5k out of pocket. My friend has of course had to pay all monies owed to the owner etc etc .

My friend doesn't want to pursue it through small claims as she is worried that if it all comes out she may lose her licence.

Not sure how to pursue this one so any advice would be greatly appeciated.

I think the moral of the story must be don't mix friends and business.

Thanks
Slingshot

 

[evand]

Yes a silly thing to do. What outcome does she want? Does he want to get the money from her 'friend'?

Track him/her down and try to get the money back. Surely they must know people in common. Failing that, use a private investigator. She might have to let it go, you cant get blood from a stone.

The outcome she wants will determine her actions. You'll need to be a bit more specific.

 

[plusnq]

It's a harsh lesson isn't it.

I feel she should take it on the chin and use it as a life lesson as being a PM. If she can't trust her friends who can she trust? She'll be a much better PM for her clients as a result of this lesson.

She can try and pursue her friend but I suspect her "friend" knows the situation well and realises that the long term costs of losing her license would be much more than the short term pain of financial loss.

It's an old saying " in God we trust...everyone else pays cash"



Cheers

Shane

 

[slingshot]

Yes its harsh indeed plusnq and really a sad situation as my friend was really trying to help her out.
Evand the outcome we want is to get the $$$ back, nothing else.
We hopefully can track her down fairly easily, she (supposedly) owns a property in Darwin so RP data will sort that, we assume she's there.
I guess I was indirectly seeking advice on small claims. If we did take that route could it a) potentially affect her license and b) potentially make "the friend" cough up.
Its a bit vague I know but was hoping somebody else may have had a similar experience and could offer some advice.

Thanks
Slingshot

 

[Petal]

I can't see a good outcome unless her "friend" decides to pay her.

She needs to move on from this and as others said, learn the lesson.

Actually it could have been much much much worse when you think about it.

What if the friend decided they wern't moving and still continued to not pay any rent.

I can think of a number of scenarios that could have definitely cost your PM friend much more money and the possibility of loss of her licence.

 

[GoAnna!]

Assuming there is a clearly documentated debt I can't see why you can't go through a regular private debt collection agency. They will outline what is required in terms of paperwork. If she still fails to pay they could then list it on her credit record and I am unsure what other steps they could take.

I guess it makes you have a big think about what being "good hearted" actually is. I think its easy to label such behaviour as good hearted when actually it's taking the weakest course of action and certainly not beig good hearted towards the landlord who had placed trust in her. I am sure all of that is quite clear now and it's a lesson learned. Kudos for coming up with the money for the landlord who is afterall the innocent party in all this.

 

[Raddles]

Hi there
have actually acted for people pursuing debts and also people trying to clear debts.
Being listed on Veda Advantage is not something you want to happen - and often to get a clear bill of health - people do have to pay up.
Try doing a letter of demand once you find the person - and highlight not only could there be court action - the person can list the "friend" on the TICA database and the Veda Advantage database. Affecting someone's credit rating can be a strong deterrent - and may result in arrangements to recover the money.
thanks

 

[josko]

I rented one of my IP's to a "friend" and lost that "friend" due to similar circumstances. However it was my property to let!

Old story. Don't mix business with pleasure.

Regards Jo

 

[marg4000]

I think your friend has just learned a very expensive lesson in life.

If she pursues her "friend" the said "friend" may retalliate by reporting the matter to the real estate authorities, and your friend may well lose her licence as well as any career prospects in real estate.

All things considered, it could have been so very much worse.
Marg

 

[Beef_Hooked]

My friend doesn't want to pursue it through small claims as she is worried that if it all comes out she may lose her licence.

I think the moral of the story must be don't mix friends and business.

Hang on.....

This person has taken what is probably one of the biggest investments that their client has, having probably dedicated a large portion of their life to achieve, and proceeds to "lend" it to someone else without complying with any of the basic requirements that he/she charges for and is paid to carry out.

She should lose her license! and if it was my property I'd do all I could to make sure this happened.

Call me a b@stard, but I don't like people stealing from me.

Cheers,
Beef.

 

[Gools]

Slingshot, did they actually sign a lease?

 

[WinstonWolfe]

I agree with Beefhooked. Your friend is a dangerous naive, not only for breaking the trust of her client, but also for her choice of friends.

She should wear the $5k as a valuable lesson to wake up to herself. The law and society in general don't see naivety as a defence once you are over 18.

Personally, anyone who has to borrow money for something as basic as accommodation and bond is in dire straights. There's always a long history of stupid life choices behind someone in that predicament. To lend them money on the basis they are somehow going to change their ways and miraculously pay the loan back at the same time as paying rent is Pixiesville.

The best way to help people like that is to educate them to live within their means, and hopefully make them wake up to earning more and spending less.

 

[battle on]

Book a hearing with Judge Judy!

But seriously take it on the chin and move on. They have both done the wrong thing and is risking her career worth the 5k. She should think herself lucky it was'nt more after treating a client like that. Clients are her bread and butter and should be treated with respect and honesty.

Lets hope she learns a valuable lesson as I am sure the "friend" will at some stage in the future.

 

[slingshot]

Thanks evryone for your replies.

There is no question that ethically it was the wrong thing to do and my friend has copped it on the chin and has learnt her lesson in no uncertain terms. She has kissed the money goodbye!
True it could have been much worse but thankfully it wasn't. As a landlord myself I would be furious but if all monies owed to me were paid I would let it the matter lie but maybe find a new PM. Not all people are as clever as us and sometimes they do make mistakes and wrong decisions.

Never the less I'm a big believer in "singing fat ladies" therefore I will help pursue this matter to recover whatever we can.

Go Anna and Raddles thanks very much for your suggestions and I will definately investigate the options you have mentioned, much appreciated. And Gools, yes she did sign a lease.

Thanks again, I'll let you know the outcome.

Cheers
Slingshot.

 

[jaycee]

emmm, Goanna's way..

There's only 1 other way I can think of, some people are good at "reasoning" with people who don't otherwise get it (but their fee is usually not tax deductable!)

 

[natecv8]

The $5k is relatively cheap, or so I hear. Losing an agent's representatives license is only really the least severe of the possible consequences - there are significant fines for both an agent and their agency.

As much as the situation stinks, if I were your friend I would definitely let it go. It could easily mean no license, a wad of debt and no employment to pay it off.