NSW Can I Sue Real Estate Agents for Mismanagement?

[Harry P]

Hi there

I am a landlord in Sydney and I have had a real estate agents look after my apartment for 2 years. They have done only one inspection, they have kept no records of communications with contractors regarding the property maintenance, and they have taken fees from the tenants payment of rent 6 months in advance.

I have terminated the agreement with them but they have taken fees for the next 3 months. They argue that they are entitled to take the percentage from whatever the tenant has paid.

In relation to the inspections the management agreement states that they are to do "periodic inspections", is once every 2 years periodic?

Many thanks

 

[Rod]

If the lease is 12 months, then once every two years is not periodic.

What does the agreement say about rental fees?

You might be better accepting their fees for the next 3 months and cutting all ties with them than arguing the point. You are no worse off having them take the fees you would otherwise have paid to your new agent.

 

[Harry P]

Thanks Rod

It is a continuing (periodic) lease. The Agreement states that "management fee is 4%" It does not say 4% of what.

The notice period is "30 days"

 

[Rod]

Personally I don't think it is worth the hassle. Put it down to experience, learn from your mistakes and their bad management, and get better agents with a better agreement.

I think you'd struggle from a legal perspective in successfully arguing your case.

 

[Harry P]

Personally I don't think it is worth the hassle. Put it down to experience, learn from your mistakes and their bad management, and get better agents with a better agreement.

I think you'd struggle from a legal perspective in successfully arguing your case.

Thank you. I think this lets them off the hook way to easy.

 

[Rob Legat - SBPL]

Without looking at the actual figures, Rod's right. The time and cost in pursuing this through a court or tribunal is unlikely to be worth it. Instead, you may want to consider a complaint to their industry body.

 

[Harry P]

The figure is about $900. Is a letter of demand for debt and debt collection an option?

Thanks

 

[Rob Legat - SBPL]

Sure, but if they don't acknowledge that they owe the money then it's ultimately useless. If they dispute the debt, you're relegating back to taking legal action.