Property manager issues

Our Experts Answer:

You have not mentioned the nature of the “issue” that has given rise to the tenants lodging a claim against the property manager. Was it something that the property manager failed to do, even though they had your authority to act? Or was it a situation where the property manager could not act because of a lack of authority from you?

Your property manager is your agent and must act in your interests within the authority that they have been given. Your management agreement with your property manager should specify how the agreement can be terminated.

If you terminate the management it is possible that the property manager could ask the Tribunal to recognise you as the Landlord and have you named as respondent, either jointly or in place of the property manager. If the Tribunal makes an order against your agent there is a possibility that the property manager will have a subsequent claim against you in the Disputes Tribunal, even though you may not be a party to the Tenancy Tribunal proceedings.

The range of outcomes depends on the facts before the Tenancy Tribunal. I suggest you let the hearings take their course.