Must agree with Sez too, always sad to see these come up.
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Particularly sad if you're the victim of this kind of thing.
We had one that went under. Personally we ended up out of pocket to the tune of over $10k. They were looking after, I think, five or six of our IPs at the time. We had one tenant who paid in cash & our statements showed no payments. A couple of dodgy tenants were installed without a bond (or maybe they did pay a bond, but it was not lodged). When they eventually got removed we were out of pocket the amounts of the bond, plus loss of rent, because we would have never approved the tenants if we had known the truth.
There were a few other things too, but I've tried to put this all behind me & can't remember the details.
This happened during an extremely bad time for us (things come in sets of three, or so they say) and nearly sent us to the wall. We know of many Landlords who didn't recover financially at the time. There was also a couple of instances of deposits that should have been deposited in the Trust, but weren't.
There is some kind of fund that will give compensation, should this kind of thing happen, however in our case, he was too clever & we didn't have the evidence, it was only 'word or mouth' as in the case of the missing rent, he didn't give the tenants receipts either. There was a young receptionist who remembered receiving the cash, but would not testify for fear of backlash.
