Problems with your property manager?

Cam Beer asks:
(updated on Tuesday, September 04th 2007)

I am overseas and have a property manager looking after my property. The tenants went into 3 weeks of arrears, then abandoned the premises. My PM went to the tribunal and gained the bond back. She asked if it was to be put towards rent arrears or repairs/cleaning (new carpet, fixing broken walls, paint etc - cost about $3000). I advised her to put it towards repairs. she has now taken 10% off the bond refund, despite my advising her that it was for arrears. we are still in the process of finding the tenants to serve them with rent arrears from the district court. Can the PM take rental commission from a bond refund despite having not actually collected the bond? thanks for your help

Our Experts Answer:

This query relates to your contractual arrangement with the property manager. This is outside of the Residential Tenancies Act or any Acts the Department of Building and Housing administers. You can seek independent legal advice or go to a community law centre about the matter. You can also contact the Real Estate Authority (REINZ), 0800 473 469, or the Independent Property Mangers Association (IPMA) on 03 377 9254. REINZ has a code of practice for property managers at

The Department of Building and Housing provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.

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