Who pays for first time phone connection?

[Toon]

I just had a call from my PM saying I have to pay or reimburse tenants for the first ph connection. Yet on the CAV website it says that the law does not state whether the landlord or tenant has to pay. Has anyone had experience with this. This wasn't brought up at all before the lease was signed. Tenants aren't picking up key till the 15th.

Any advice would be much appreciated.

Toon

 

[PrimeCommercial]

I would have thought that if you rent the place with a working phone then it would be your responsibility to pay for it.

 

[Toon]

It's OK, I found this on the Tenants Union of Victoria's own website:

Telephone

Tenants are responsible for all charges related

to the supply and use of a telephone at the

rented premises. This includes all service

fees, call charges, equipment rental charges

and connection fees. It also includes the cost

of the initial connection of a telephone line.

If you are moving into a property that has

been newly built, or where there has not

been a connection for some time, it may be

necessary for the line to be laid or re-installed.

This can be extremely expensive and you

cannot recover the cost from the landlord.


I'm so relieved! This had never been brought up before the lease was signed, then the PM rang and told me that the tenant had told her that by law I had to pay & she said she remembered that that was true. Turns out it is rubbish. I had said, OK then they can have rent in leiu, but I've just emailed and retracted that offer. So much for the PM knowing the rules!

 

[buzzlightyear]

Toon, when there is a newly built property, a phone line connection fee for the first landline service, which I believe is around $300 today is paid by the tenant, unless you agree otherwise.

I do recall paying this about 3 years back, when moving into a newly built apartment (well it was less then)

 

[Toon]

Toon, when there is a newly built property, a phone line connection fee for the first landline service, which I believe is around $300 today is paid by the tenant, unless you agree otherwise.

I do recall paying this about 3 years back, when moving into a newly built apartment (well it was less then)

Thanks Buzzlightyear. I don't feel so guilty now about refusing to pay it. Funny thing is, I probably would have come half way if it weren't that these tenants are making all kind of demands now after signing the lease and they haven't even moved in yet. I'm starting to wish they would pull the plug and reneg on the whole thing as I don't know if I can cope with this for the next 12mths.

 

[Pushka]

We put Virgin broadband home phone into our new IP - $60 a month gives broadband internet, free land line local and std calls, and free calls to virgin mobiles. No installation costs or ongoing rental fees to Telstra. The tenant pays the $60. Win - win

 

[poppy]

I had an IP in Melbourne and the PM basically forced me to pay for the initial phone connection (or pull out at the last minute and find another PM and tenant).

The landlord does not have to pay for the phone connection in VIC. Although it is common for the landlord to do so, probably because the PMs tell them they have to.

The PM then re-imbursed the tenant for their entire phone connection costs including the standard phone connection fee of $59 which should definitely NOT have been paid by the landlord.

My latest IP I'm building in Brisbane, and I don't hold out much hope for finding a PM that is willing to enforce the phone connection cost on the tenant, without a huge fight from me, which I don't have the energy for.

 

[Toon]

I had an IP in Melbourne and the PM basically forced me to pay for the initial phone connection (or pull out at the last minute and find another PM and tenant).

The landlord does not have to pay for the phone connection in VIC. Although it is common for the landlord to do so, probably because the PMs tell them they have to.

The PM then re-imbursed the tenant for their entire phone connection costs including the standard phone connection fee of $59 which should definitely NOT have been paid by the landlord.

My latest IP I'm building in Brisbane, and I don't hold out much hope for finding a PM that is willing to enforce the phone connection cost on the tenant, without a huge fight from me, which I don't have the energy for.

Here I was thinking PM's worked for the landlords', whose money they are taking. My PM asked me to provide her with the link to the information on tenants being responsible for all telephone costs! It is even in the tenancy handbook, which her office gives out to tenants and landlords. So much for her keeping up with her industry - the info hasn't changed for years either.

My supervisor used to be in charge of new connections with Telstra and said it was a really common argument that tenants expected the landlords to pay, but in fact it was completely the tenants responsibility, even the very first connection.

 

[Ausprop]

in WA the landlord needs to pay it, along with just about everything else. Tenant... all they need to do is live theor carefree life and attempt to pay the rent when they have some spare cash.

 

[wylie]

I just copied this from the Residential Tenancies Association website. I did a search on "telephone connection" and got five hits, and this was one of them.

"Is the connection of a telephone covered by the Act?

The Residential Tenancies Act 1994 does not make specific reference to the connection of telephones.

The standard terms of the tenancy agreement do make reference to the connection and charging of a telephone in Items 11, 12 & 13. However, telephones are not described as a service in the Act or the Regulations.

What steps should the tenant take before signing a tenancy agreement?

When making the initial inspection of the premises, the tenant should check to see if there is a telephone connected to the property. A telephone line protruding from the wall does not necessarily indicate that there is a telephone connected to the premises.

If the telephone is not connected before the tenant moves in, they should discuss the proposed connection and the costs associated for connection, with their lessor/agent. Any arrangement agreed upon may be included as a special condition in the tenancy agreement.
Tenants may follow the process for adding fixtures & inclusionsduring the tenancy if no arrangement was made prior to entering into the tenancy agreement.
What should happen if an agreement cannot be reached mutually?

If an agreement cannot be reached mutually then either the tenant or the lessor/agent may apply for dispute resolution through the RTA.

If dispute resolution is unsuccessful an application will need to be made to the Tribunal."


We have three young twenty-somethings in a place on a twelve month lease. They use mobiles and have not had the phone connected. I plan to ensure that I put a clause in the next lease covering myself regarding cost of any re-connection fee, over and above the usual fee.

With more and more tenants opting to use mobiles, this is something that may become an issue in the future, so I plan to cover myself in all future leases and make sure potential tenants are told vebally as well, before they sign the lease.

 

[DavidMc]

It's OK, I found this on the Tenants Union of Victoria's own website:

Telephone

Tenants are responsible for all charges related

to the supply and use of a telephone at the

rented premises. This includes all service

fees, call charges, equipment rental charges

and connection fees. It also includes the cost

of the initial connection of a telephone line.

If you are moving into a property that has

been newly built, or where there has not

been a connection for some time, it may be

necessary for the line to be laid or re-installed.

This can be extremely expensive and you

cannot recover the cost from the landlord.


I'm so relieved! This had never been brought up before the lease was signed, then the PM rang and told me that the tenant had told her that by law I had to pay & she said she remembered that that was true. Turns out it is rubbish. I had said, OK then they can have rent in leiu, but I've just emailed and retracted that offer. So much for the PM knowing the rules!

Toon is correct for Victoria.

I paid it in the past though.

 

[373au]

I built new properties in Qld & Vic & the tennent paid the first telephone connection fee of $300, I then re-imbursed them by way of credit on their rent. I then claimed the connection fee on tax.

Spud.

 

[poppy]

I then claimed the connection fee on tax.

Phone connection fee is not claimable on tax, only as part of the cost base when you sell the property. The only part that might be claimable on tax is the standard connection fee component of $59 (the landlord should not be paying this though)

 

[frehnejc]

I paid the $300 connection fee as the house was newly built in an established suburb and an old house was knocked over, however if the house wasn't in an established suburb I would not have paid it.

 

[Xenia]

We ask all tenants to pay for phone connections and have it as a condition in our leases requiring them to do so. They are told this at the tenant induction process so there are no surprises.

In SA it must be written into the lease agreement otherwise it defaults to a landlord responsibility.

Some tenants will negotiate upfront for the landlord to pay before signing the lease and some landlords agree to pay to secure a tenant. This is different to expecting landlords to pay all the time.

98% of our tenants will pay phone connection charges and telephone points without question.

 

[Ausprop]

I built new properties in Qld & Vic & the tennent paid the first telephone connection fee of $300, I then re-imbursed them by way of credit on their rent. I then claimed the connection fee on tax.

Spud.

sounds like a long way round of saying "i paid for it"?

if you have reimbursed them by crediting rent then it has been claimed, to claim again would be double dipping. not to mention the question marks over capital vs revenue deduction

 

[D.T.]

Hi,

Being that I work at australia's monopolised telco, thought I'd give my view.

If a customer calls to arrange connection of a home phone service, status/history checks on the address are performed. If it's been connected recently (even with another telco), connection cost is $59.00; or $27.50 if customer is on centerlink, or veterans' affairs. A $299.00 (or $194.00 for C.Link / V.Affairs) connection fee would apply if if the address had not been connected before. Obviously, some times (such as for a new build) some work needs to be performed, and sometimes no work needs to be performed as it may have already been pre-organised in anticipation of future connection (especially for units).

This charge appears on their next month's account regardless of whether they've bought the property or are renting it.

I do overhear alot of consultants advising customers moving into a $299.00-scenario home that they should pay $59.00 (that it would have been had it not been a new home) and negotiate the $240.00 difference from owner. In essence, I agree with the content of the message as I'd probably do the same for my tenants (depending on individual state Acts), but do not agree on advising this. From a telco point of view, the $ is on the tenant's bill and are hence liable to pay it (and risk credit action if they dont) - whether they source some, part, or all of it from another party (ie owner) is not really any of my business.

 

[Toon]

In the end, we both got our own way - his employer is going to pay it

 

[chrispy]

After the renovation - I paid the connection on my Cairns townhouse for when the tenant moved in. Then the tenant moved out.

The next tenant did not connect the phone.

Telstra used my connection for another townhouse in the block.

Replacement tenant moved out, next tenant moves in and is told it is a new connection by Telstra.

PM phoned and said it is normal practice for landlord to pay first connection fee. I said, No way, been there, done that, tell tenant to use a mobile.

From then on I heard nothing, I have no idea whether tenant connected phone or not.

Chris

 

[steveadl]

Went through this a couple months back. 3yo property but no phone line installed. We paid for the installation, then about a month into the lease the tenant asked for permission to put a 2nd line in. I said "go nuts, but we're not paying for it." But he didn't expect us too so all good.

I assume Xenia is correct that it must be written into the lease (in SA). When my PM said they want a phone we just paid for it, I wouldn't expect the law would require them to pay for the installation of a line - doesn't expect them to pay anything else so why should this be any different.