A NSW landlord’s failed attempt to recover costs for alleged tenant damage has highlighted the importance of property managers maintaining clear, honest communication while helping clients abide by strict timelines.
Property managers have been reminded of their duties to landlords after a recent case saw a property owner lose her opportunity to recover $11,823.90 in repairs and associated costs for alleged floor damage.
Last week, landlord Natalia Munday lost her appeal to sue her former agency, claiming an agent’s inaction led to her inability to recover costs for damage to the floor of her Medowie property, allegedly caused by a tenant’s cat urinating.
Munday discovered the damage in July 2022 and communicated with the agent over the course of the next few months until September 2022, when the agent terminated the management agreement.
It is unclear at what point Munday formally requested to take legal action against the tenant, but the agent ultimately informed her that if she was not happy, she should pursue action with the NSW Civil and Administrative Tribunal (NCAT).
The Rental Specialists – Glebe principal, Jo Natoli, said that a landlord could request that an agent pursue action against tenants on their behalf, but landlords also had the ability to take action themselves.
“It really depends on the authority that the landlord has given to the property manager, and that is typically outlined in the management agency authority,” she told REB.
According to NSW guidelines, agents are generally obligated to pursue legal action on behalf of a landlord.
Natoli said that in any case, the landlord needed to clearly express their intention for the agent to escalate the matter and not simply assume they would.
“If the landlord has failed to provide the agent with instructions to act, then the agent is not going to act,” she said.
In March 2023, Munday tried to sue the tenant for compensation through NCAT, but was living interstate in Queensland at the time, and was told she had to take the issue to a NSW court.
After applying to sue the tenant again in November 2024, she was informed she was outside the three-month limitation period, and the tribunal refused to grant an extension as her case was not strong enough.
In its most recent ruling, NCAT found that Munday previously had the chance to pursue legal action within the limitation period but had missed her chance.
It said even after Munday had been made aware that the agent would not commence proceedings, she’d still had the chance to file her own claim before the limitation period expired.
NCAT also ruled there was no compensable loss from the agency’s actions because the tribunal had already determined in earlier proceedings that any claim against the tenant was unlikely to succeed.
Given that property managers are required to act within the landlord’s best interests, Natoli said it was paramount for them to ensure good communication with landlords about legal deadlines.
“If a client is giving an indication that they do want to pursue certain matters against the tenant in a tribunal, then I would suggest that there is a responsibility on the agency or the agent to notify the owner of the timeframes,” she said.
To avoid any miscommunication issues, Natoli said she always sought clear updates from her clients, and in return, advised them on what actions needed to be taken and the timelines involved.
While the onus was on the landlord, Natoli said that property managers needed to stop being scared of having difficult conversations with their clients.
“A lot of problems come from because they don’t know how to have those hard conversations and because a lot of property managers don’t like telling people what they don’t want to hear,” she said.
“But sometimes that’s our role. We need to be upfront and honest at all times, whether they want to hear it or not,” Natoli concluded.
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