Before we start, a word from our 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 the second part of this series, Special Counsel Brendan McGrath joins me again to chat about what can’t be claimed during a rent roll period.

what can’t be claimed during a rent roll retention period

In our last blog, we spoke about rent roll retention periods and what can be claimed for properties lost during the standard 90-day period following settlement of a rental portfolio. We focused on properties sold, changes in agents, properties no longer part of the rental pool and properties untenanted. However, it’s also important to touch on what can’t be claimed.  

Losses that cannot be claimed during a retention period are: 

when the buyer is the agent in the sale

The retention period is put in place to protect the buyer against properties and landlords that choose to exit. But when the rent roll buyer is also the selling agent and involved financially in the exit sale [e.g., making a commission], making a successful retention claim is unlikely. 

 

where there is a drop off of an appointment due to mismanagement or misconduct

If an appointment’s drop-off is due to mismanagement or misconduct on the buyer’s part, making a claim is difficult.  

Mismanagement or misconduct on the buyer’s part can look like delayed payments, staff not up to speed on processes, and general misconduct in the way the business is run. This can also extend to where appointments, fees and charges are changed.

When it comes to mismanagement and misconduct, if you are in acquisition and bringing a portfolio in the current structure, make sure to get your staff and team involved so they look after it correctly.  

Communicate with your landlords, make sure that what they had in the previous sales situation is well looked after moving forward and ensure that the processes are correct. This way mismanagement or misconduct won’t come into the discussion.  

 

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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