What is my right?

[bluray]

Hi everyone,

First time poster here and hopefully someone could give me some advice regarding the matter.

My managing agent has been late in paying strata levy for my unit and as a result I was charged with recovery cost and interest on arears by the body corporate. The levy was due on last December and I noticed that they forgot to pay it when I received my rental statement for that month. I do understand that they might have missed the payment due to busy Christmas closure and then remind them again to pay on January. When January statement arrived, it still hasn't been paid yet. After another call to the property manager, they said they will pay it on February but unfortunately there was some urgent repair that need to be done on that month & the money left on the account wasn't enough to pay for the levy. Finally on March they paid the levy.

Since I have paid the agent fee every month to help me manage the tenancy on a day-to-day basis, I believe it is unfair for a landlord to bear the cost of late payment made by the managing agent. Do I have a right to ask them to compensate my loss by deducting it from their montly management fee since it was their mistake at first place? I am now about to write a letter to the managing agent and would like to get some advice beforehand. If the agent say no, what is my option?

 

[Aaron_C]

Isn't the landlord responsible for paying strata fees? Don't you get the invoice from the body corp?

 

[The Y-man]

Isn't the landlord responsible for paying strata fees? Don't you get the invoice from the body corp?

Many people leave it for the PM to deal with things like rates, BC etc...

The Y-man

 

[The Y-man]

Since I have paid the agent fee every month to help me manage the tenancy on a day-to-day basis, I believe it is unfair for a landlord to bear the cost of late payment made by the managing agent. Do I have a right to ask them to compensate my loss by deducting it from their montly management fee since it was their mistake at first place? I am now about to write a letter to the managing agent and would like to get some advice beforehand. If the agent say no, what is my option?

If they are supposed to be managing your recurrent bills for you, then I'd be totally peeved too if there was a late fee due to them not processing it!

The Y-man

 

[marg4000]

If you look at your written agreement with the PM I am almost certain you will find a clause exempting them from damages for any late payment.

I raised this issue with my bank when they wanted me to arrange direct payment of accounts. Turned out that if payment was not made for any reason I had no recourse against the bank.

I pay all our recurring expenses except for any repairs that the PM arranges.
Marg

 

[Belbo]

The problem - I know from first-hand experience - is actually snail mail for the most part.

Strata managers often generate the quarterly fee invoices a week or two before they're due. Those that have to be snail mailed rather than emailed must be printed, folded and put into envelopes (which sometimes need to be address labelled), stamps attached, these taken to the post office, etc. It's a chore, ya know? Then Australia Post has to deliver it reliably within only a few days. Yeah right! I've seen strata bills arrive by mail the day they are due for payment many times.

Now, once the bill arrives it then has to be entered into the PM's accounting system and paid before any other disbursements (other bill payments or rent payment to owner) - so it must be flagged as highest priority - otherwise the computer might just pay an annual insurance bill say first simply because it was entered earlier, and this soaks up all the rent monies received. That is, the PM's bookkeeper needs to actually know how to set up their computer's payments system - and not all do.

My advice is to get this one bill emailed to you by the strata manager directly and pay it yourself.

 

[bluray]

Hi everyone,

Thanks for your replies. I do understand that the levy payment might get delayed due to the last minute Strata managers generate it, slow post, agent priority in processing, etc but for two consecutive months payment delay I don't think it is acceptable. Especially after I reminded the property manager himself

 

[locko24]

I'd suggest paying the outstanding amount, but not paying the interest.

You should get away with it most of the time.

 

[bluray]

Locko24,

Full amount has been paid by the managing agent.
The interest is not much. The recovery cost is huge ($95 for 3 months delay).

 

[tobe]

I was in a similar situation with missing mail from the council. When they finally tracked me down I negotiated with the agent to pay half of the out of pocket.

 

[The Y-man]

I was in a similar situation with missing mail from the council. When they finally tracked me down I negotiated with the agent to pay half of the out of pocket.

And it actually should be a lot easier to explain and negotiate with the Strata committee than a council. Have they actually incurred this recovery fee from a debt recovery agent?

The Y-man

 

[Lil Skater]

It really depends on the contract you have with your agent, so it's hard to say whether you have any recourse or not.

As good business practice though, if I were in the position I would expect to be compensated as they should have systems in place to prevent this occurring, at least over such an extended time.

Speak to the PM and/or director, and ask to be compensated as you reminded them and due to an oversight on their behalf you have incurred a late fee of $95.

 

[Scott No Mates]

When January statement arrived, it still hasn't been paid yet. After another call to the property manager, they said they will pay it on February but unfortunately there was some urgent repair that need to be done on that month & the money left on the account wasn't enough to pay for the levy. Finally on March they paid the levy.

If there was a shortfall, the agent should have sent you an invoice to give them enough to cover the shortfall, no excuse on the agent not seeking the money to pay a bill if they are short.

 

[bluray]

Thanks for all your feedback.

I have checked the written contract agreement with the PM and there isn't any clause mentioned exempting them from damages for any late payment. I have written an e-mail to my PM raising this matter and he said that he will look into it and advise the outcome shortly. He is probably going to discuss the matter with his director. Finger crossed. Anyway if the answer is no, where should I bring the matter further? Fair Trading? I'm in NSW by the way.

 

[Belbo]

Thanks for all your feedback.

I have checked the written contract agreement with the PM and there isn't any clause mentioned exempting them from damages for any late payment. I have written an e-mail to my PM raising this matter and he said that he will look into it and advise the outcome shortly. He is probably going to discuss the matter with his director. Finger crossed. Anyway if the answer is no, where should I bring the matter further? Fair Trading? I'm in NSW by the way.

As I understand it you are out of pocket by about $100, is that right? That's a very small amount to chase through a very large pile of red tape. The statins needed will set you back ten times as much!

 

[bluray]

As I understand it you are out of pocket by about $100, is that right? That's a very small amount to chase through a very large pile of red tape. The statins needed will set you back ten times as much!

Belbo,

I know the amount is peanut compared to the trouble it is going to take but should there be any gov body who can actually control the way real estate agents do business.
Or else everytime it will be either tenants or landlords faults and they always get away with it & sucking money from both sides. Shortly just want to let them know that what they are doing is not right & not a good business practice regardless of the outcome.

 

[Ideo]

Belbo,

I know the amount is peanut compared to the trouble it is going to take but should there be any gov body who can actually control the way real estate agents do business.
Or else everytime it will be either tenants or landlords faults and they always get away with it & sucking money from both sides. Shortly just want to let them know that what they are doing is not right & not a good business practice regardless of the outcome.

Don't get me started on useless property managers not knowing what they should be doing.

I see it on both sides. I rent my PPR and have investment properties. Trust me, they are useless from both sides.

 

[Belbo]

Belbo,

I know the amount is peanut compared to the trouble it is going to take but should there be any gov body who can actually control the way real estate agents do business.
Or else everytime it will be either tenants or landlords faults and they always get away with it & sucking money from both sides. Shortly just want to let them know that what they are doing is not right & not a good business practice regardless of the outcome.

I'm not saying you're wrong about the principle. I'm just saying you might want to pick your fights for the ones that make sense to you on a cost-benefit ratio as well. I've suggested previously here that it might be Aust Post's fault more the the REA's fault. Just that much uncertainty will probably see the Office of Fair Trading (yep, they're your guys for this) tell you it's too hard to be sure who's to blame. Just run for parliament, it's easier.

 

[bluray]

I'm not saying you're wrong about the principle. I'm just saying you might want to pick your fights for the ones that make sense to you on a cost-benefit ratio as well. I've suggested previously here that it might be Aust Post's fault more the the REA's fault. Just that much uncertainty will probably see the Office of Fair Trading (yep, they're your guys for this) tell you it's too hard to be sure who's to blame. Just run for parliament, it's easier.

Point taken Belbo. Sometimes when people are talking about principles, all logic and monetary concerns go straight out the window.

 

[lizzie]

The recovery cost is huge ($95 for 3 months delay).

If you think that's huge - you should try being a day late with ASIC.