HELP - PM and tenant from HELL!

Hi all,

NIGHTMARE PM! PM AND TENANT FROM HELL!

Can someone tell me what can be done about such a PM. Can I seek compensation?

Story from the beginning. I built a new house on land. Brand new home finished in November 2008. This agent (one very popular franchise name in Victoria) found me a couple who wants to lease for 6 months, as a temporary residence while their new house is being built. The agent assured me these tenants are honest, clean, etc. Ok Sign up.

When they moved in, the inspection report was very meticulous and accurately done. Eg "wall small mark at which corner" etc.

5 months later, around early April, the tenants suddenly gave notice to vacate for 23rd April. I initially already had some disagreement with how this agent handled some of the matters - eg when i wanted to cancel the utility bills so the new tenants can transfer to their name, I was told by this PM that they do that "all part of the service", done by their "transfer agent". BUt all the while I keep receiving Electricity bills, water bills. Only the gas bill is directly sent to the tenant.

So with the notice I got that they are leaving on 23rd April, I arranged for advertisement to get a much higher rent than the PM can. The agent advertised for $250, but got no response. I advertised myself for $290, I got quite a few response, partly because the people looking at my ads were mainly expats, or people planning to move into Victoria and wanting to secure a place first. Ok I got someone who wanted to move in 24 April.

A few days before 23 April, I had this hunch I better call this agent to confirm 100% that their notice letter is still valid. I was told, "oh, the screen shows 6th May now". I made a bit of noise by complaining why I wasn't informed by a simple phone call or email. Ok I let that rest this time. I told our new potential tenants 6th May. I have to give them a discount rent for 4 weeks, to keep them interested.

1 day before 6th May, I called the PM again to make sure. They called the tenants and told me "not moving out 6th May, they want to move out 11 May". This time I was boiling! Why does this tenant keep changing their notice at the last minute? "OH because their builder hasn't completed their new home. Pls understand, these are good tenants who take good care of your house." I made a complaint to the director, and later that day was told the tenant's lease agreement is until 25th May. So they are giving early notice to leave, and they can change their mind anytime they like, as long as they havent returned the keys to PM. So I asked "does this mean they can keep playing this game with me everyday - promising key tomorrow, but not return the keys - until 25th May?" . Answer "Yes, unfortunately, this is how it is. But remember they still have to pay rent until their lease is complete if the property vacant".

So 11th may, I went to the property to do inspection report with PM. I was expecting to get the keys back today, but lots of cleaning stuff not done by tenant! PM made a list of things -
1) garbage all over the backyard needs to be cleaned
2)garbage all over the front yard needs to be removed
3) tenant's stuff in the garage still not removed
4)new oven not cleaned - had stains and grease all inside

She said the others are just wear and tear. But I noticed internal walls had kids' drawings on pen and crayon on some areas. Many parts of the walls had scratch marks, dents, here and there. This was a brand new property 5 months ago, and my 10 year old own home's internal wall is in better condition!!
I made a list of my own for tenant to clean:
1)kitchen benchtop not properly cleaned
2) sink not cleaned
3) external render wall had many chip marks (paint and render fell off as if some one used some tool to hit the wall - about 10 -11 holes). The PM said "oh maybe this is a building defect, the paint may be not good and fell off itself". I noted the other wall in front of garden is in perfect condition. So I insisted the PM to get the tenant to reimburse.
4)my builder complained to me that the tenants had thrown their heaps of rubbish and old stuff at the end of the road at the reserve land grass area.

Why the outgoing report is so casual? Everything is "fine". Filthy kitchen sink - fine. Filthy cabinet surfaces with greasy marks here and there - "fine".:mad:

So the agent says the tenant still has keys to the property and will come back to clean up the next day afternoon on 12th May. She assured me I will get the keys on late afternoon 12th May.

Next day, I drove 50km to Melton from the city, waited and waited, PM didn't call me and was out of office. I left message for my keys to be returned so I can let new tenant move in. Late afternoon, PM called me saying "I just called the tenants and she said her child is sick today, she is not cleaning up. But her husband will clean up after work this evening. You will get your keys tomorrow morning. I assure you". So I waited the whole day there for the keys for nothing (again)! I said "why do they keep breaking their notice?? if they are not serious about cleaning, lets get a professional and deduct from their bond". She said "no we can't, we got to give them time". But until WHEN? These tenants have a habit of delaying and breaking their notices at the last minute. PM said "no, they are very good tenants". Ya my a$$. So i was assured by PM -tomorrow I will get the keys and my new tenants can surely move in.
After that I had to call my new tenant and tell her she cant move in this evening (this would be the 3rd time telling her to move in another day).

I made sure I went to the PM office to leave a note of all the things that MUST be cleaned up by tenant. I wanted to see PM, she was in her office but just told her reception she has "no time, busy, not even for a quick word", but she has time to tell the reception what to tell me, and reception pass my message to her, and she tells me "tomorrow morning, PM will be at property 10am". In my opinion, this PM was a bit stuck up, arrogant, has bad communication skills, and helping the tenant mucking me around.

I sent a formal email to their office, CC to the director as well, to tell them to remember WHO they are working for and who pays them - OWNER, not tenant. Stop siding with these tenants who keep mucking me around, wasting my time, screwing up my plans. I had to tell my new tenants for 3rd time - last minute notice- that they cant move in. And i told the PM to inform me about things earlier! Don't always wait till last minute before I am supposed to get the the keys then tell me sorry no keys!

12 May - morning, I drove all the way from city to Melton again. At 9.20am, the reception called me saying the PM went to the property already (so it is obvious this PM doesn't want to see me or talk to me, as she told me meet there 10am yesterday). I arrived at 9.40am. GUESS WHAT?

Property was the same condition as yesterday. The tenants did not come back to clean yesterday as they promised. So they actually broke 2 promises to clean yesterday - one for noon, one for evening.
I had to tell my new tenant again (4th time) that she can't move in today. This time, the new tenant already had her stuff in a truck, ready to move!!!!

I went to the PM's director this time. Since I didn't get a call from the PM at all to update me what was happening. She was avoiding me.This time I went directly to her director at their office. He said "these tenants sent a fax at 9.30pm last night to our office, saying they got better things to do, their child is not feeling well, they are not cleaning up, they are offering $100 bond for you to clean up and get the wall fixed. They returned the keys". That's not enough! To remove those rubbish I got to hire a trailer or get someone to do it, $100 to clean up the whole house, remove rubbish and fix the paint/render??? Director said " Obviously these tenants are trying to smartarse and trying to get away with it because their mum is a real estate manager. We will give them a warning - 48 hours to clean up, or else surrender your whole bond for us to get professional cleaners to pay them".
Plus, he also told me that the tenant's mother is a real estate agent/manager who applied for a job with him before, but he rejected her because doesn't like her working style. So she doesn't like him and he doesn;t like her and them either! Plus, the fax was sent from the mum's real estate office!!
So I said "this could be done delebierately out of spite!!" . He said "nah, i don't think so". (yeah right) So on the 13 May, make it the 3rd time I went to Melton and received no keys!

So the next day, I got a call from the PM saying the tenants have cleaned up this time (within 24 hours! surprise what a little warning can do!). I told her, "this is what i have been telling you, stop listening to the tenant's lame excuses all the time and giving into their every demand. I dont like these tenants one bit!". Now she tells me " I dont like them either". (before this she kept telling me these are GREAT tenants.)

Now that I got the keys back on the 13th May, I assumed they will pay rent until 13. But no, the PM told me VCAT will allow tenants to return keys and give them 10 days grace to clean up the property. (Is this true? Im not sure. If it is, it is a stupid law). When I was renting in Sydney, the Pm there did not give 2nd changes to clean up. Either you clean up by the time the PM comes for conditions report, if not, deduct bond he will get professional himself!

And upon further questioning, the PM said rent is paid up to date. "Upp to what date?" I asked. "Up to 11 May". HOW can that be? Your director was telling me they didn't return the key until 12 May night or 13 May morning! And on the 11th, when we did our inspection, you said the tenant still has keys and will come back next day to clean up?". You know what she said?

"No actually they returned the set of keys on the kitchen bench on 11th May, I picked it up, thinking the tenant was still holding another copy(so she could come back to clean)." Conclusion 1: This PM doesn't even know how many sets of keys the tenants have!! Or when they returned it! She had no bloody idea! She must have been chasing the tenant for the keys and the tenants tell her "i left it there on the 11th!"

I asked further "so without keys, how do they expect to come in to finish up the cleaning?". You know what PM said? "THe tenant left the garage door unlocked on the 10th, so that he has free access to the property to clean up. But he doesn't have keys":eek:!!!!!! How can they do that? "Well, they did that and nothing happen did it?" OMFG!!!! Melton is one of the highest crime rate area in Victoria, tenant can get in, so can ANYONE!

I remembered on the 11th, I noticed the garage door unlocked and I locked it from the inside. And on the 12th, I left a note inside the house for the tenants to see - a list of things that they must clean. And that list was faxed by the tenant's mum back to the PM office on the night of the 12th.

SO HOW DID THE TENANT GET ACCESS TO THE PROPERTY ON THE 12TH TO GET THEIR HANDS ON MY HANDWRITTEN NOTICE TO THEM? I locked the garage on 11th!

Conclusion: THis PM is either
(1)half asleep all the time - doesn;t know what she's doing at all
(2) doesn't care
(3) taking the tenant's side (maybe tenant knows her?)

Questions:

1) Can I get the tenants to pay rent until the new tenant moves in or until end of their contract? (remember the old tenant's lease doesnt expire until 25th May). Now the PM is telling me I can't, because the old tenant returned keys on 11th (evengthough the PM didn't realize that "all" keys have been returned until the 14th).

2) Can I get compensation from the old tenant if the new tenant chase me for compensation for their failed furniture transfer on the 13th?

3) Can I get compensation from this PM? Or should I demand a reduced commission?

4) How do I force the old tenant to surrender all their keys back to me? They obviously made copies!
 
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1) Can I get the tenants to pay rent until the 14th. Because my new tenant moved in on 15th. (remember the old tenant's lease doesnt expire until 25th May). Now the PM is telling me I can't, because the old tenant returned keys on 11th (evengthough the PM didn't realize that "all" keys have been returned until the 14th).

2) Can I get compensation from the old tenant if the new tenant chase me for compensation for their failed furniture transfer on the 13th?

3) Can I get compensation from this PM? Or should I demand a reduced commission?

4) How do I force the old tenant to surrender all their keys back to me? They obviously made copies!

Yikes! :eek: Sounds like it went form bad to worse....

(1)-(3) might need to go to consumer affairs (and maybe a current affairs after that!).

(4) is difficult short of changing locks - this is pretty common...


Cheers,

The Y-man

p.s. time to change PM for sure now....
 
Personally i think if you are finding this pm so difficult to rely on and trust then you should give her notice and find yourself a new one.

As for the rest of it, I am not up to date on tenancy regulations in vic, but i would suggest that it probably isn't worth your effort in trying to get anything more out of the tenants. Use it as a learning experience and move on.

Look on the bright side, they might not have been good tenants - but there are definitely worse out there, and they are probably pretty average in their treatment of a rental.
 
Just a little confused about timing. Even though they gave notice of leaving on 23rd April, they were still being required to pay rent as they had signed a 6 month lease? So, I guess I wouldnt be in a hurry to leave either if I was still paying rent.
 
Rodimus

I am so livid reading this. What makes it worse for you is that it is a brand new home !

Think it's time you 'name and shamed the PM' ...we are a few SS investors in Melton and if that has been your experience, it will pay to warn others to steer off them.

I found my PM at Sweeneys Melton was getting slack some time ago and moved PM to Sweeneys Bacchus Marsh. Talk to some other PMs in the area and see what they say.

And take a deep breath (easier said than done) but this is what we landlords sometimes have to cope with. Hopefully, you have done your due diligence with new tenant and it will be easier.
 
O my gosh sounds like a" friday 13th movie"
But this is what i would do! 1st thing is get the new tenants in! if they are in at least the mortgage is covered, and either manage it your self or find a recomended PM.
Now you have the comfort Zone, sit and think , put a file "as if a solicitir would" of evidence yhey can be "sms" e-mails, and some written dates in a diary, put together a case against the current PM and the agency, put together a full list of quotes for cleaning, stress , time lost, chips, and re paint of some walls, charge it up so it becomes 30% above the real amounts, then see your solicitor and the first thing that gets done are letters, this should scare the crap out of the tennent and the pm and there may be movement to a pre settlement.
The Agency promotes their professionism, and they have failed in their duty!
The tennents sound like lazy smart *** pigs, and this will come out soon enough! THATS WHAT I WOULD DO!
it will take time, but the revenge will be worth it!
 
Rodimus,

The underlying premise of your frustration seems to be that you think, as the Owner of the property, you are in charge. As you've just witnessed, this is not the case, despite all of your "hustling".

Once you realise this is not true, everything becomes much easier.

Now - more importantly, how is the Tenant's little sick child ?? I hope it is alot better, and the worn out Mum gets a good rest.
 
I posted previously about a PM renting to friends...
My theory on this stuff is quite simple, I always give the 2nd chance & the benefit of the doubt, once.
After that I instruct the PM to issue termination notice and withhold bond money.
It does'nt always get issued, but it generally clear all the BS that a PM thinks they can feed me.


Tenant responsibilities under the Residential Tenancies Act

* To fill out the condition report and give the landlord a copy
* to pay rent on time
* to care for the premises
* to pay for any damage caused by you or your guests
* to report the need for any repairs or maintenance
* not to make alterations or additions without the landlord's permission
* not to alter, remove or add a lock or security device without the landlord's permission
* not to use or permit the premises to be used for an illegal purpose
* not to cause or permit a nuisance
* not to interfere with the peace, comfort or privacy of neighbours
* to give correct written notice when you leave
* to leave the premises in a similar condition to when you rented them, except for normal wear and tear.
 
What made me so mad was that, the PM allowed the tenant to do whatever they wanted.

-leave the keys on bench table and leave the garage door unlocked for 1 - 2 days. (From the garage, anybody can basically access the whole house!)

-screw me around for 5 -6 times with their false notice of vacating and returning keys, and pull out in the last minute. (Caused me to have to keep telling my new tenant to move in another time again and again, and also caused me to waste 3 days driving to Melton, inspecting and not getting keys at all).

-the tenant paid rent until 11 May, and the agent says "well, their rent is up to date, because they returned keys on 11 May". I don't think she has any idea that the lease doesnt expire until 25 May until I reminded her.

-PM doesnt even know when the tenant returned the set of keys (she was thinking that they have other copies).

-PM very casual in the inspection report, everything was "ah that can;t be helped," "ah thats wear and tear" "ah maybe the exterior render has a defect that automatically caused the wall to have holes due to weathering"

It;s like, their motto is "the tenant is always right" and "we have no idea what's going on" and "let the owner pay for it".

If i had not stepped in and talked to the PM's director and demanded an ultimatum issued to the tenants, I dare to say these tenants still would not clean up the place until now. These tenants are from 36th level of lowest hell, very near the scum/worm level. :mad: (joking- the only thing that can give me a break from 'hgrrrr" feeling is some sarcasm and jokes on the old tenant's expense).They think because their mum is a real estate manager and knows some tenancy law loopholes and rights, they can do anything and demand anything just to 'play' with me and get away with it. Plus with this PM so eager to please them and having no idea what's going on most of the time, it's not helping.

THinking back, it might have been better I managed that property myself, by asking the Somersoft forum for advice if i run into anything im not sure of. I originally let this office handle my property because the Senior PM is a lot more personal and has good communication and lot more thorough. Who knew she got the project and passed it on to this PM?
Before 11 May, we have already decided to self manage this property when the new tenant comes in.

Guys, these issues are not closed yet because we have not refunded the bond and there is this issue of the rent.
After its all resolved I will reveal to you guys which agent it is. Hint, it is NOT sweeneys. Its a bigger franchise name in Victoria. They should change their name to "No Idea Agents Pty Ltd"
 
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Is anyone familiar with VCAT laws.

Is it true that once tenant returns key, they still have 10 days grace period to come back and clean up properly as instructed by the agent?

Does that mean the 10 days is at the owner's loss rent expense?

When I was renting in Sydney, I always thought, once you return keys and the agent comes for inspection, if it's still not clean the agent has the right to call Professional cleaner right away and deduct from bond?
 
Rodimus,

The underlying premise of your frustration seems to be that you think, as the Owner of the property, you are in charge. As you've just witnessed, this is not the case, despite all of your "hustling".

Once you realise this is not true, everything becomes much easier.

Yeah right, easier to let the whole thing rot - sounds like what a complacent, lazy and "dont care" owner would say.

You are wrong, IF I had not stepped in and intervened, the property would still be in a mess right now! And I would still have to keep telling my new tenant to come next time again and again! How embarrasing! I do feel bad for my new tenants eventough its not my fault, that is why I am going to offer them few months of rent discount. Who pays for it? ME!
 
I'd really put self management as a very last resort.
Thinking about this i know very few(or none) landlords who have'nt been through a similar scenario.
As tkf??? posted, just remind yourself who the owner is.
I know he likes to post about tenant rights etc, but all I know is that I own my property and I won't have any tenant or PM tell me what to do, as I set the rules to the extent that the law allows me.
Of course be diplomatic at all (at least most) times, but the PM works for you.
The agency works for you, and yes the tenant is your customer, as long as they stay within the rules and meet their responsibilities.
The moment they don't, they are no longer customers, but liabilities, and liabilites need terminated asap. The good thing about residential rentals is that tenants are dime a dozen.
I also ammend the PM agreement with whatever I feel they should be doing and cross out a few I think they should'nt.
I think this is not a case of loopholes but a shoddy PM who is either lazy & dumb, does'nt care, or just taking advantage of you.
Hope you sort it out.
 
yes u are right.

As an Owner and with all dealings, I always act in an ethical manner with integrity and fairness.

But that does not mean tenants and PM can step all over me and take advantage of me as they wish. That is why I get so mad when people take advantage of me in a way that I would not do to them. I try to be as nice and polite as possible, but once pushed beyond a limit, I will push back with full force until I get my rights back.

As always, people with integrity and ethics are more easily disappointed with the world as other people try to behave at every opportunity with a 'dog eat dog' world view.

When the PM called me last few days to update me, I still treated her with respect and politeness in a diplomatic way. But she still keeps messing things up eg telling me the rent is complete up to the 11th May, and that she didn't even know which day the keys were returned (she changed her story several times already). The more I deal with her, the more I find that she has no idea at all what;s going on, or that she doesn't take her job seriously.
 
As tkf??? posted, just remind yourself who the owner is.
I know he likes to post about tenant rights etc, but all I know is that I own my property and I won't have any tenant or PM tell me what to do, as I set the rules to the extent that the law allows me.

You obviously....along with rodimus....don't have a really thorough understanding of the law that governs your asset.

I can only emphasise that you most certainly do not, as Owner, set the rules.



I also ammend (sic) the PM agreement with whatever I feel they should be doing and cross out a few I think they should'nt.

Good luck trying to enforce any of that nonsense. You can write whatever garbage you want in the Lease....and get the Tenant to sign it.....none of it counts for a hill of beans when push comes to shove.


Residential Tenancies Act 1997 - SECT 28
Harsh and unconscionable terms

28. Harsh and unconscionable terms



(1) A tenant may apply to the Tribunal for an order declaring invalid or
varying a term of the tenancy agreement.

(2) On an application under subsection (1), the Tribunal may by order declare
invalid or vary a term of the tenancy agreement if it is satisfied that the
term is harsh or unconscionable or is such that a court exercising its
equitable jurisdiction would grant relief.

(3) An order under this section has effect according to its terms.



If it ain't in the RTA PnB, you'll be out there with your stick of wet spaghetti pushing manure uphill against the Tribunal member.
 
The "PM agreement" is between myself and the PM.
I've often modified and crossed out clauses. It's a contract like any other.
And no, I would attempt changing the Tenancies act lol.

But it is not "Harsh and unconscionable" if they fail to meet their responsibilities as set out in the Tenancies Act.
I see the problem as mainly being the PM and not the tenant.
The risk of bad tenants is just part of the game, what counts is how PMs deal with it, as in this case. The tenant was bad, the PM worse.
Most problems get worse when you let them run as the PM did here..
Of course you have to make sure your PM follows the correct procedures etc etc so that you don't face the court as the evil capitalist pig throwing a poor renter out on the street.
In residential RE new tenants are always waiting in my experience, which is since 1987.
 
rodimus,

I would like to make a couple of points - none are in order and not related to each other point:

1. Your problems started with the tenant selection - (and I don't mean because the tenant was the son of another local agent - this is irrelevant); You have a brand new property and you leased it to someone who needed accommodation short term while they waited for there property to be built; this tenant treated your property like a half way house, is not concerned about the ramifications of being added to any default databases (as they will probably not rent again or not for 8 years*). The tenant selection was a poor choice - you chose a tenant that would likely to cause damage or excessive wear and tear because they did not care.

2. I have read all your previous theads relating to this property/tenant/PM: I come to the conclusion that you have not helped your PM by your attitude/involvement and the agent may have been sick of dealing with you and taking on the attitude that he/she does not care about you/your property and could not care if you took your business else where. Being a PM can be a very stressful job and I don't think your actions have helped your cause.

3. You do need to change PM's, or even self manage - I think you should try to self manage - that way you will learn all the ins and outs, you will come to look at the whole property investment/management situation, you will become wiser and have a greater understanding how the system works.

4. You need to take some big deep breaths, sit back and look at the bigger picture, you are stressing over little things that in my opinion are not worth the pain (2 days rent, a bit of putty and paint, the tenant having the keys 1 week early because the gas was not connected) - work out how much $$ you have lost - is it all that bad? (wait until the market changes and your property is vacant for 6+ weeks - it does and will happen).

5. Some people where never meant to be Landlords, they simply can not handle the stress, they want the tenants to be as clean as they are, they want the tenant to look after the property like they do - this is simply not how it works.

6. I do wish you luck and hope that you are able to see the bigger picture.
 
The risk of bad tenants is just part of the game, what counts is how PMs deal with it, as in this case. The tenant was bad, the PM worse.

I believe that there were a number of factors that caused problems with this tenancy.

Tenant selection bad tenants??? - i would not even call these tenants as they only wanted a roof over there head while their house was completed - they were always going to treat the property poorly and vacate as soon as their property was completed - not a good selection as all this was known prior to the tenancy starting

Bad PM I don't know if the PM chose the the OCCUPANT solely or whether it was the only applicant or If the LL had approved, The PM did seem to side with the tenant with minor items - key return, unlocked garage door, poor exit report - put everything down to wear and tear. (I feel that the agent was over this property after the involvement/ almost harassment from the LL from the start of the tenancy - I think that the PM was happy to find out the management would be removed from him/her)



The Occupant pushed the non-interested PM and won at the cost of the LL, why/how did this happen?

The tenant did not care - had nothing to lose/everything to gain

The PM did not care - new they were losing the management as the LL had sourced own tenants, PM took the easy way out did not want to fight with the tenant so said everything was wear and tear, did not care about tenant staying a couple of extra days, did not care about the property not being secure, did not care about the LL all simply because the PM new he/she was losing the property and wanted to take the easiest way out.
 
you have not helped your PM by your attitude/involvement and the agent may have been sick of dealing with you
Collector said:
you are stressing over little things that in my opinion are not worth the pain (2 days rent, a bit of putty and paint, the tenant having the keys 1 week early because the gas was not connected)
Collector said:
Some people where never meant to be Landlords
Exactly my impression, too. Though I'm sure we'll both get a long spray from rodimus for venturing these opinions. :D I can already hear what he's going to say: we're making false assumptions (even though we've both read every word), and none of it was his fault, and it's all somebody else's fault, and we don't understand, etc... :eek:

Sincerely, rodimus, you're going to have a stroke at this rate. You've posted to the forum several times now in an absolute lather, full of cursing and extreme, melodramatic language, over incidents which strike me as pretty much "par for the course" of owning residential property. You either need to learn to stop catastrophising, or sell your property, for the sake of your health.
 
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