Before we get into it, a word from the legal team:

 

Disclaimer:  These discussions on how refunds for a retention claim can be made are general in nature. The specific terms of the Rent Roll Agreement will govern the detailed process and evidence requirements (including timing of the evidence). Specific legal advice should be obtained with respect to actual operation of the retention provision for each Rent Roll Agreement.

 

In today’s video, Special Counsel Brendan McGrath from our Legal team joins me to discuss what is claimable during a rent roll retention period.

 

what can be claimed during a rent roll retention period

When a buyer purchases a portfolio from the seller, there’s usually a retention period of around 90 days. At the conclusion of that time, there can be properties that have dropped off that portfolio that will require a refund back to the buyer.

But there are a couple of reasons where this is claimable.

 

the four main times you’ll make a successful claim during a retention period are:

  1. Where the property is sold during the retention period.
  2. Where the landlord appoints another agent during the retention period.
  3. When the landlord moves back into the property and the property is no longer part of the rental pool.
  4. Where the property remains untenanted throughout the entire retention period. It must have been untenanted at settlement and continued to have been untenanted the entire time all the way through to completion.

The fourth point can be due to maintenance reasons as well. Where the property is going through a renovation, especially with the floods that Brisbane has seen in recent times.

Another important thing to remember is that sometimes people will get a call from their landlords to say “look, I’m going up the road to a different agent”. But when the time comes to make that claim, there’s no evidence. It’s just a phone call. So it’s important that we get the right evidence to be able to present to the solicitors to do the claim.

These things often end up in disputes. And when there’s any dispute, often best evidence wins.

So when you’re looking to make a claim, make sure you’ve got all your evidence ready. The best evidence is usually something in writing, whether it be from the landlord or the property being sold [evidence of the sale].

If the situation is one where there’s a dispute as to whether or not the termination of the appointment is due to mismanagement, or simply if the landlords moved on to a different agent, having that all lined up in writing is key.

The best evidence usually wins, not always, but in most cases. Keep in mind the points that are going to be in discussion, in retention and have your evidence ready.

 

we’re here to help!

If you need more help understanding rent roll retention periods you can reach out to our Agency Broking team or Legal team at oneplace@businessdepot.com.au or give us a buzz on 1300 BDEPOT. 

 

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