Background
We have a property in a rougher housing area in Orange NSW. Have had the same tenants since we purchased the place in 2010. Tenants was always a bit patchy with payment since the start but never owed more than 3-4 weeks of rent while property was managed by a local agent.
Around the end of last year, we moved property management to a company operating out of Sydney. It's a friend's new venture and we thought we support him with his new company. We had knew him for a while, had property dealings with this guy before (though not in property management) and things were always ok. Well, not this time.
Situation with rent payment deteriorated after PM move. I think because of the remote management. Old PM used to knock on tenant's door when he's late, with new PM managing from out-of-town this couldn't be done. Long story short, warnings were sent, went to tribunal and we eventually had the right to evict tenant. At this time rent owed had grown into $3,800. I ordered PM to proceed with eviction but PM advised to negotiate with tenant and his community advisory board to put him on a payment plan instead - tenant to continue to staying at the property and paying extra rent per week to catch up on the amount owed. The deal was that anytime tenant fails on his promise, we could go straight to debt recovery and eviction. With this understanding, I agreed.
Issue
On July, I noticed that tenant hadn't paid extra as agreed and instructed PM to move forward with debt collection and eviction, claim insurance and start over with a new tenant. Since then, I've made numerous calls and emails to PM but still hasn't heard anything back until now. Her assistant had been sympathetic, passing messages when I called and tried to help with updates when he could, but he didn't know much about the property so couldn't help. Oh and PM is the licensee in charge, so I can't raise the issue up too!
To add salt to injury, I contacted the owner (my friend) but he's gone AWOL too. Couldn't reach him via mobile and emails, left messages in his office but not returned. Losses so far $6,800 and counting
Questions
1. What can I do from here? We have a free-rider living in our property now and a non-contactable PM. I don't have a copy of previous tribunal decision to pursue eviction myself, or tenant ledger to claim insurance.
2. Is there any ombudsman / govt department I can contact?
3. I'm err-ing on not terminating agreement now, as I live overseas at the moment and will need someone to help with tribunal, insurance, etc. Ideal situation is for management to move to a local PM, but I'm not sure if any PM will take the case on with the tribunal case, possibly reno required if there are damages, etc. so it's probably be a while until property is earning again.
I know it was my mistake to move management of the place from a good local PM to an unproven non-local PM, just based on the fact that it's a friend's company. I'm kicking myself for that, so please don't beat me up more over it
We have a property in a rougher housing area in Orange NSW. Have had the same tenants since we purchased the place in 2010. Tenants was always a bit patchy with payment since the start but never owed more than 3-4 weeks of rent while property was managed by a local agent.
Around the end of last year, we moved property management to a company operating out of Sydney. It's a friend's new venture and we thought we support him with his new company. We had knew him for a while, had property dealings with this guy before (though not in property management) and things were always ok. Well, not this time.
Situation with rent payment deteriorated after PM move. I think because of the remote management. Old PM used to knock on tenant's door when he's late, with new PM managing from out-of-town this couldn't be done. Long story short, warnings were sent, went to tribunal and we eventually had the right to evict tenant. At this time rent owed had grown into $3,800. I ordered PM to proceed with eviction but PM advised to negotiate with tenant and his community advisory board to put him on a payment plan instead - tenant to continue to staying at the property and paying extra rent per week to catch up on the amount owed. The deal was that anytime tenant fails on his promise, we could go straight to debt recovery and eviction. With this understanding, I agreed.
Issue
On July, I noticed that tenant hadn't paid extra as agreed and instructed PM to move forward with debt collection and eviction, claim insurance and start over with a new tenant. Since then, I've made numerous calls and emails to PM but still hasn't heard anything back until now. Her assistant had been sympathetic, passing messages when I called and tried to help with updates when he could, but he didn't know much about the property so couldn't help. Oh and PM is the licensee in charge, so I can't raise the issue up too!
To add salt to injury, I contacted the owner (my friend) but he's gone AWOL too. Couldn't reach him via mobile and emails, left messages in his office but not returned. Losses so far $6,800 and counting
Questions
1. What can I do from here? We have a free-rider living in our property now and a non-contactable PM. I don't have a copy of previous tribunal decision to pursue eviction myself, or tenant ledger to claim insurance.
2. Is there any ombudsman / govt department I can contact?
3. I'm err-ing on not terminating agreement now, as I live overseas at the moment and will need someone to help with tribunal, insurance, etc. Ideal situation is for management to move to a local PM, but I'm not sure if any PM will take the case on with the tribunal case, possibly reno required if there are damages, etc. so it's probably be a while until property is earning again.
I know it was my mistake to move management of the place from a good local PM to an unproven non-local PM, just based on the fact that it's a friend's company. I'm kicking myself for that, so please don't beat me up more over it
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