PM didn't put up rent as required.. Options?

[Icarus]

Hi all,

I usually stay on top of our IPs and speak to our PMs pretty regularly; but I've been OS for the majority of the year and have let a few things slip.

Guessing it is tough luck for me; but when a rent review was due; I advised the PM to up the rent the usual $15pw via email. I received a reply email saying that she would inform the tenants and change the rent when the new lease was signed.

I've just checked my statements for last month and the PM failed to up the rent.

Called the agency yesterday and was informed that previous PM had left the firm and new one knew nothing of rental increase request. The new agreement has been signed - 6 month contract.

Is it just a case of suck it up; not a great amount of cash in the scheme of things I know, but more the fact I am paying someone $2500ish a year and they aren't doing their job properly.

Heading out west in 2 weeks to look for a new PM; it's a case of 3rd strike and they're out.

Do I have any options? Or just count my losses and find another PM?
Thanks in advance.

 

[Propertunity]

..... I advised the PM to up the rent the usual $15pw via email. I received a reply email saying that she would inform the tenants and change the rent when the new lease was signed......

If that is the case, then you have a claim against the agency for the $15pw shortfall for the duration of the new 6mth lease of 15 x 26 = $390pw. There should be no argument as you have the paper trail.

 

[buzzlightyear]

Prop's right, but getting them to pay up, is a bit like going after tenant who has left you owing rent, cleaning and other costs. Knock yourself out.

And it depends on how much they value your custom of course.

My gut feeling is they will acknowledge their error, be very apologetic and you'll get a bit of love from their new PM or OIEC, but not pay and let you walk if you feel that's not enough. Maybe if they do acknowledge their error and want to keep you, they might offer to do that subject to putting you in xx month exclusive management agreement with break clauses, so you don't walk, after they pay you.

To me, a new property manager at the same agency is almost like going to a new REA. Of course if the issue is with the office processes and procedures, then nothing will save them.

 

[Terry_w]

Just ask them to reduce their management fee or give you free management until the rent can be increased.

 

[1911naomi]

Same

I has exact same thing recently. Asked to increase by $10 per week. Didn't happen, excuses excuses. Nothing i could do regards to rent as would upset tenants so asked for management fees to be waived 3 months. Still out of pocket but better then nothing. Will change agents after 3m wasn't happy with them anyway.

 

[Icarus]

Thanks for all of the feedback and options everyone; sending an email off this morning with copies of all of the email communication between the previous PM and myself.
Doubting whether I can get the PMs to part with any money, but will aim for reduction or negation of management fees and see how it goes.

As always, I appreciate all of the help. Prop, Buzz, Terry and Naomi; thank you for taking the time to reply!

 

[Scott No Mates]

I'd be inclined to ask for a reduced mgmnt fee as well - unless they replied that the market wouldn't bear the increase. It can't hurt to ask for a discount.

 

[mattysavager]

Let us know how you go.

I frequently make calls like this when my landlords don't get back to me after a week or so. Some are annoyed until I point out that I sent them 3 emails trying to get an answer before using my discretion as per the management agreement.

It seems that this wasn't the case, and it's not great service from your PM, but a rent increase appeals to PMs too, as it translates to more fees. There may have been a good reason it wasn't done and just a lack of communication on their part.

 

[Icarus]

Scott No Mates; the market is on the up, rent was apparaised at $10-15 per week more than is current.

Sent an email off late last week asking for 5% discount over the length of the lease. Had an email reply over the weekend saying the matter has been passed onto the manager - who is on holidays this week, back Friday apparently.

Doing a bit of research at the moment and speaking to other agents in town so at least we have a fallback option if needed.