PM and missing rent money

I need some advice

I currently have a pm managing my property; this month the rent was short paid - I received the equivalent of two days rent.

Short version: I was originally told tenants were a month in advance, on written advice from my accountant they admitted tenants are actually in arrears.

Tenant contacts me directly with all receipts; the money has been deposited into agents account and stamped by bank.

pm and director of company have been unhelpful, intimidating and quite rude; tenant had to take time off work and go to pm office. pm finally admitted money has been found but I still don't have the money.

can anyone advise what action or alternatives I may have to deal with this.

Thanks
 
yes,
be on their doorstep first thing in the morning and demand the money in cash by the end of the day, actually lunch time would be better. Be very loud so that passers by can hear. Advise you will be instructing your solicitor to act on the matter after 12pm.

After that, fire them as your PM.

good luck
 
After that, fire them as your PM.

Or, before that fire them as your PM so you don't lose any more money/ have the PM doing even more of a dodgy on you.

Also take them to VCAT (assuming the PM is in Vic), with proof money hasn't been paid to you, but tenant has paid their rent.

Probably going to long and painful, but hopefully it will get sorted.

Good luck and fill us in!
 
get ride of them ASAP and then continue to chase up your money. If you stick with them, they may end up ripping you off even more. Threaten legal action.

Basically just follow Bespoke's advice.
 
pm and director of company have been unhelpful, intimidating and quite rude

If they behave this way towards you, imagine how they've treated your tenants! Unhappy tenants = non looked-after property! The arrogance and rudeness of many PMs out there is quite appalling. Amazing how quickly after the charming sales pitch they forget who pays their wages!

Check your management agreement with the PM. If there is a notice period for termination, serve written notice ASAP. If there's no notice period, send them a letter terminating their services effective in 7 days. This will give you enough time to either find a new PM or transfer bills into your name so you can self-manage. I'm sure the tenants will love you for it!
 
Last edited by a moderator:
Its really a kick in the guts when the PM is stealing your rent money, you put your trust in them.

When I signed up with my PM, they tried to get us to try their ..sinking fund? (for want of a better word). They keep back a percentage of the rent in their account and then pay the property bills out of it. I considered it for ..oh about 2 seconds and then declined. Its bad enough they collect the rent weekly/fortnightly and only pass it on to me monthly.

Actually I seem to recall telling them I wanted it fortnightly.....doesnt matter as we are changing PMs anyway.

Lj1074... let us know how you get on.
 
Don't panic

All real estate agencies are controlled by the relevant office of fair trading in that state.

Running a trust account requires compliance with Trust Law.

1. Contact the agent for the money,
2. Lodge a complaint with the Office of Fair Trading (CAV in Victoria)
3. Lodge a complain with REIV - if the agency is a member agency - they will investigate.

This will trigger investigations into the agents Trust procedures and if found to breach any component of Trust Law - they will be penalised or worse still their corporate license terminated.

If monies have been fraudulently dealt with and missing, you will be able to make a claim from the CAV fund.
 
Ask for a Trust Account statement 1st- then sack them. Demand all monies remaining in trust account and return of keys.

Cite the variation in the trust statement and what was received as your reason.Put it all in writing.

Have the tenant pay you directly by eft/ direct debit.

Then out with the blowtorch and go to work on them-

Police- Fraud
Office of Fair trading- missing $
Civil damages for the money not recovered- be sure to sue directors and the company:D

No prisoners.
 
Thanks everyone for your advice. Have taken it all in board and in the process of changing pms.

The missing money turned up in my bank account tonight. Not a word has been heard from the pm about this since last week, they did however send me an inspection report.
 
If they behave this way towards you, imagine how they've treated your tenants! Unhappy tenants = non looked-after property! The arrogance and rudeness of many PMs out there is quite appalling. Amazing how quickly after the charming sales pitch they forget who pays their wages!

Check your management agreement with the PM. If there is a notice period for termination, serve written notice ASAP. If there's no notice period, send them a letter terminating their services effective in 7 days. This will give you enough time to either find a new PM or transfer bills into your name so you can self-manage. I'm sure the tenants will love you for it!


What bills does someone have to trandfer into their own name please Kate ?

I'd also request something in writing form the Pm, I used to deal a lot on email, stating how much is due for payment and when I'd get it.

I'd try to terminate ASAP rather than 4 weeks with a fee also (has been done before )
 
Last edited by a moderator:
Looks like a lynch mob mentality here. There may be a very plausible explanation, you should at least ask for an explanation before considering your options. Many RE offices have more than one account, it's possible that the bank made a mistake and put money into the wrong account, tenant has proof of payment, RE agent has the money but is looking in the wrong account, they eventually find it, I know of more than one case where this has happened.
 
Looks like a lynch mob mentality here. There may be a very plausible explanation, you should at least ask for an explanation before considering your options. Many RE offices have more than one account, it's possible that the bank made a mistake and put money into the wrong account, tenant has proof of payment, RE agent has the money but is looking in the wrong account, they eventually find it, I know of more than one case where this has happened.

Agree with what you are saying and I wouldn't have had a problem if the pm involved was prepared to discuss it.

They started off being rude to a family member who answered the phone, then were intimidating and rude to myself. All the pm would say is that I have been doing this for x number of years and I am 100% correct. They refused to have me come into the office until I had reviewed the statements again. I then had to pay my accountant to go through things. when the pm received my accountants letter identifying the same error I had already advised them of, they sent a letter to the tenant advising they were in arrears and were rude to them when they phoned for clarification.

I have already removed the property from them and cannot recommend them. I can't and won't work with someone who refuses to discuss things.

Having worked in accounts for 15 years, I understand that processing errors occur, however their response to the situation was unacceptable.
 
I have worked in a RE office that had three accounts, a general account, a credit card account and a trust account. The trust account was used for receiving all rent money, bonds etc and payment of rent money to owners, tradesmen and bonds to the RTT, this was audited on a regular basis by a team of men in black suits, they would arrive and go to any file either rental or sales and ask to see all the related documentation. Owner, tenant, vendor, receipts, ledgers, key sheets, it all had to be in order, everything had to balance to the cent, they spent the day. They left leaving the board room full of folders and files for someone at the bottom of the pecking order to put back. It was forbidden to pay rent money or bond money into the general account, although on occaison it did happen. The tenants would forget/lose their Bpay details and a well meaning bank clerk would help them out and pay the money into the general account. The amount showed up in the statement but with no reference next to it it was just wait and see until a tenant turned up complaining about a rent arrears letter when they had only just paid their rent 5 days before.
 
You mean change the billing address on them not the name, I'm pretty sure the bills are always in your name. but yes, you do have to get the billing address changed.
 
You mean change the billing address on them not the name, I'm pretty sure the bills are always in your name. but yes, you do have to get the billing address changed.

Actually Jaycee you may need to do both as the bill might say "To Mr Jaycee care of Crap Property Management Pty Ltd". In that case, you'd need to remove the 'care of' etc bit.
 
True, you can reuest it be sent to John Smith or J Smith as part of the billing address/details.. the account itself however always remained in your name.
 
Top