I have a crap PM and Tenants have trashed my IP

[haydos1979]

Hi all,

I am hoping that someone will be able to provide some advice on my current situation. I have an IP in Ipswich QLD and it is being PM by Run Property.
I have been interstate for the past 3 years and have just moved back to South East QLD and I went out to the property to inspect it a few weeks ago to have a look at what improvements I could do to add value.

I was horrified to see the state of the property. The tenant has trashed the place. I need to rip out the kitchen as it is infested with cockroaches, replace the deck and fix other issues with the property. The property was inspected at the start of December and the inspection report from the PM does not reflect what I have seen. I have asked the PM for a signed copy of the condition report from when the tenant moved in but the PM cannot produce this. Also the PM has gone and got the tenant to resign the lease for another 6 months without first contacting us. They said that they sent a letter to us and if they do not here from us at all the automatically resign them.

Another Issue I have is the tenant paying for water usage. In QLD the tenant has one month to pay. The PM is not enforcing this with the tenant and is telling me that she can't make the tenant pay for the bill. It is stated in his lease and he is now 60 days overdue. The property has all the correct water saving devices as required.

In Part 3 Special terms paragraph 23 of the lease agreement it states the following about the tenant paying for the water.

‘The Lessor and the tenant/s of the aforementioned property, hereby agree that after 1st April 2008 the lessor will be responsible for the payment of all future Water Access charges and the Tenant will be responsible for the full cost of ALL water usage at the property provided that the property is fitted with the required water saving devises and is separately metered. It is noted that after 1st April 2008 this clause will over ride all other clauses regards reasonable water usage if the property is fitted with the required water saving devices and is separately metered. Should the property not be separately metered or not be fitted with the required water saving devices then the lessor will be charging the tenant for water usage beyond the nominated reasonable water usage.’

I have a few questions I need advice on:

1- What is the best way evict the tenant?
2 - Can a FORM 11 - Notice to remedy breach be issued because of the non payment of the water charge?
3 - What can I do about the PM?
4 - What can I do about the tenant living a pig sty and trashing the IP?

Any advice will be greatly appreciated.

 

[murph14]

Let me have a go at this....

2. Yes because Section 280 Notice to remedy tenant's breach (1)(b) states 'This section applies if the lessor believes on reasonable grounds that the tenant has breached another term of the agreement and the breach has not been remedied.' They're in breach of the special terms in the lease agreement so you should issue them with the notice. Explain this to the PM too.

1. Depends on the outcome of 2. Failing to remedy the breach you can issue them with a Notice to leave for an unremedied breach in which case they have 14 days to vacate. Else it becomes a bit unfavourable to you. If you deem the premises 'unfit to live in' then a Notice to leave for non-livability can be issued. However since this has to be done within 1 month of the event (trashing) and you can't prove when it happened except for after the December inspection it's probably not advisable. Otherwise you can issue a Notice to leave without ground in which case it's 2 months.

3. If you want to change then change. Give your PM the required notice in your agreement with them then move on. But it sounds like a lack of communication has lead to this. Make it clear to them what you expect.

4. If the house is livable not much. If you don't want them treating your house the way they do give them their 2 months notice and go from there.

 

[vyvyen]

Going through a similar situation but luckily our bad tenant is out and we will no doubt be fighting to keep his bond and get more money off him for all the damage and lack of maintenance.

But we are more furious with the property managers, they did an inspection in December and when we inspected with them in January it was in terrible condition, nothing like their inspection report.

These particular property managers just seem to be liars and have done no work for their money at all. All they seem to do is collect rent, they should be called rent collectors NOT property managers!

Can't wait to get rid of them!

Good luck with your bad tenant and sounds like even worse property management.

 

[Dazz]

These particular property managers just seem to be liars and have done no work for their money at all. All they seem to do is collect rent, they should be called rent collectors NOT property managers!

Sounds like another victim of the misnomer.

People naturally assume that Property Managers manage properties. This is where it all turns to custard....

 

[vyvyen]

How true Dazz, can't wait to sack them!

 

[Wunderbar]

Yet another peril of buying interstate. i always like to be within driving distance of my properties to check up periodically. You can't rely on agents - they have about 200-300 properties to 'manage' and what makes you think they'll look after yours any more than their other 199 clients?

 

[vyvyen]

How true Wunderbar, we figure we can save $100 per week sacking our so called 'property managers' and doing it ourselves.

 

[russellpeter]

a good way to keep track of your agent

get your agent to use (field agent) I Phone app when at your property so you get photos everytime they enter your property.

 

[pennyk]

I wish I'd have had a PM like that when I was a tenant, many moons ago.
When we did our final inspection, the PM ran a pen lid on the tiles in the shower. She found a tiny bit of soap scum and said we'd need to pay for a cleaner to clean it again. She tried the oven, but I'd spent days cleaning that, and there was nothing there. She was very disappointed.

 

[vyvyen]

Our property manager is supposed to include photo's with inspection report, so far one report with photo's, one forgotten report and one report full of lies!

Haydos we demanded a copy of the property condition report surely they have to give you a copy? Threaten them with all the breaches of their management. Also, previously we got stuck with a $300 excess water bill because of bad management. I am over property managers!

 

[shaleejam]

I wish I'd have had a PM like that when I was a tenant, many moons ago.
When we did our final inspection, the PM ran a pen lid on the tiles in the shower. She found a tiny bit of soap scum and said we'd need to pay for a cleaner to clean it again. She tried the oven, but I'd spent days cleaning that, and there was nothing there. She was very disappointed.

Me too. I had one PM who insisted I come back to the house 3 times before my bond was released:

To clean a spot of dried Jif I had missed that was so small the shadow from the tap in the bath meant I could not see it.

To wipe the spot that was at the back of the oven that i had missed. He told me I would need to "feel around a bit at the back to eventually find it"

And then when he could find nothing else he insisted I find a way to climb out on the ledge on the top floor windows (it was a townhouse) to clean a cobweb that was in the top corner. I could not safely even do that as I was 7 months pregnant at the time and the ledge was no wider than my size 8 foot.

When I rang to complain to the agency I received an apology and was informed that the PM was forced to take stress leave for a while due to unrelated issues.

But those types of PM's have been few and far between. The last two we have had actually rang afterwards to thank us for leaving the homes in better condition than when we moved in.

 

[BlueRidgeHomes]

Good morning Haydos,
I empathise with you - good PM's are like gold and I haven't found one yet that I'd be able to recommend (yet at this stage don't personally manage our portfolio I'm considering it for everything except for interstate). Things are very slanted towards tenants and unfortunately I've found that even the PM's more often than not side with tenants for fear of being reprimanded by the RTA. I'd recommend however giving the RTA a call and not only might they be able to advise you on where you stand with your current tenants but potentially what you can do about your neglient PM in terms of damages. I've had similar issues before and regret not taking formal action against the PM.
All the best
Meg

 

[Deltaberry]

Sounds like another victim of the misnomer.

People naturally assume that Property Managers manage properties. This is where it all turns to custard....

Property managers? Hahahahaha

 

[electroinvestor]

Property Managers.

Our property manager is supposed to include photo's with inspection report, so far one report with photo's, one forgotten report and one report full of lies!

Haydos we demanded a copy of the property condition report surely they have to give you a copy? Threaten them with all the breaches of their management. Also, previously we got stuck with a $300 excess water bill because of bad management. I am over property managers!

Hi vyvyen,
There are as with all trades or professions good and bad.
I am a PM myself. But I am the licensee and have only a small rent roll.
Why are owners using PMs? Because they are too busy, don't know the rules etc.
To get rid of your PM you must have a good reason and if you have, look at your agreement and give the required notice. Here in WA usually 30 days.
Also if you have agreed that your PM supplies you with photos then it should be done. I just give my owners a written report. If I take photos, they are for my records.
Property management is not as easy as people think. Why is the turnover of staff so great? It can be stressful work, dealing with rough tenants or unreasonable owners. During my 14 years of being a PM, I have "sacked" three owners. (Gave them the notice required). Life is too short to worry about rubbish!
I wonder how many owners praise the PM if he/she does a good job and they have no hassles for years?

 

[vyvyen]

BlueRidgeHomes I fully agree with you.

Electroinvestor we now have absolutely no faith in the self governed Property Management Industry apart from being able to collect your rent for you, and according to our lawyer that is the main job of a property manager so to take them to court would be a waste of money if they have collected all your rent, that's why he sold his investment properties and he's a lawyer (his words haha).

 

[jaycee]

Hi vyvyen,
There are as with all trades or professions good and bad.
I am a PM myself. But I am the licensee and have only a small rent roll.
Why are owners using PMs? Because they are too busy, don't know the rules etc.
To get rid of your PM you must have a good reason and if you have, look at your agreement and give the required notice. Here in WA usually 30 days.
Also if you have agreed that your PM supplies you with photos then it should be done. I just give my owners a written report. If I take photos, they are for my records.
Property management is not as easy as people think. Why is the turnover of staff so great? It can be stressful work, dealing with rough tenants or unreasonable owners. During my 14 years of being a PM, I have "sacked" three owners. (Gave them the notice required). Life is too short to worry about rubbish!
I wonder how many owners praise the PM if he/she does a good job and they have no hassles for years?

I've seen people complain without a second though, but only tell the waiter the meal and eerything was great when asked.

I think it's human nature.