Thursday, February 10, 2011

Dispute Resolution & the Tribunal

Where do you draw the line?

We often comment that our role as a property manager should be changed to people manager.  Managing the property is the easy part of our role as the property cannot communicate with us, dispute issues or become irrational. However, people are very good at engaging in these areas.

Many long-term investment owners (through their own personal experiences) will be aware that when managing properties there is often no black and white clarity to an array of challenges that can arise during all stages of the tenancy. Although there is legislation that governs the rights and obligations of the tenant and landlord, there is also a wide scope of grey areas.

It is these grey areas that often lead to disputes and frustration for property owners.

As your managing agent it is important for you to understand that we are focused on working in your best interests to maximise your income and optimise capital growth. There will, however, be times throughout the tenancy where we will need to compromise during a dispute with a tenant and work towards a win/win situation.

If a resolution cannot be achieved with regards to a grey area, then the only course of action we have is to lodge an application with the Tribunal to seek their direction and orders

From experience, this can be a risky alternative for property owners, as the decision for the outcome is often based on how the Tribunal member hearing the case feels on the day or interrupts the evidence presented.  When the matter is referred to the Tribunal, the owner of the property is also responsible for the lodgement and hourly attendance costs.

When a dispute does arise it is important to ascertain the dollar value in question, the circumstances and possible outcomes to determine if it is financially viable to pursue the matter. Sometimes it is beneficial to compromise, rather than being focused on just one outcome.

Areas where common disputes can arise:
  • Tenant request to break agreement
  • Required maintenance needed at the property
  • Presentation of the property 
  • End of tenancy bond disputes 
  • Rental increases 
  • Tenancy renewal requests
Should we not be able to resolve a dispute with the tenant you can be confident that we will seek your instructions before taking the matter further.

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