Realtor Negligence - Landlord Forum thread

Realtor Negligence by Octomeow (California) on July 28, 2012 @00:17

as a landlord I paid a realtor to find me a tenant for a high end property (1 month rent, month to month contract, california) She was more focused on pleasing the tenant then servicing me as a landlord. In the end, the tenants left after only 1 month with proper notice since they decided to buy.

Can I recoup the cost of her commission and hire another realtor? I feel it's lack of due diligence. Or am I stuck assuming the risk?

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Re: Realtor Negligence by Anonymous on July 28, 2012 @01:19	[ Reply ]

Depends, what were the terms of your contract? You said they left after 1 month with proper notice? How is that possible? Did he sign the lease then give his notice?

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Re: Realtor Negligence by Bryan (Ia) on July 28, 2012 @03:49	[ Reply ]

You say they left with proper notice, so I assume they were M2M Ts. If so, you need to be more specific in your requirements regarding lease terms with your PM. From what I understand of your post you are SOL.

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Re: Realtor Negligence by jannie (IL) on July 28, 2012 @08:59	[ Reply ]

The realtor was looking out for themselves. Unless you had a really good contract I'd guess it was one of those live and learn situation. If you are living close enough it's best to handle things yourself. You can do prescreening via phone and eliminate having to show the property very often. I've use a realtor for long distance landlord situation (unable to sell property). He did little screening, and did nothing to "watch" what was going on - unauthorized day care. However, rent was always collected on time. OI realized I need to physically come back once a year and actually walk through the property myself and not trush him to do so. In your situation I would hold the realtor (or manager) to finding me a 1 year tenant.

Re: Realtor Negligence by NY-LL on July 28, 2012 @09:19	[ Reply ]

The landlord offered a month-to-month lease agreement to the tenants who, seemingly, were working in coordination with the realtor to find a temporary apartment prior to closing on a home purchase. The realtor, likely, made a commission for locating the new home purchase for their client (your tenants), while securing the rental location finders fee from the property owner. The rental location finders fee is generally paid for by the tenant … (not sure why this was made the landlord’s obligation). The landlord can attempt to sue both the real estate brokerage, the realtor and the tenants in small claims court for perpetrating the fraudulent tenancy, in order to recoup the rental location finders fee. Did the tenants at least provide a security deposit?

Re: Realtor Negligence by A.T.SF (CA) on July 28, 2012 @09:38	[ Reply ]

Did you voice your displeasure to the Realtor personally yet? Did you contact their corporate office? Did you put into writing, to the Realtor, that you are in the business of long term occupancy and not temporary housing? I believe that with a little voracity and good communication skills you can get this Realty Company to either refund your money or comp finding new tenants. Make some noise, it works for me. Did you sign a contract with the Realtor for the service and what were the terms.

Re: Realtor Negligence by Jake on July 28, 2012 @09:55	[ Reply ]

You got the same treatment everyone else gets from "property managers" and "agents." Whenever you see one coming you need to zip up your pockets.

Re: Realtor Negligence by Anonymous on July 28, 2012 @16:56	[ Reply ]

It looks like the realtor did what was agreed to. You agree to a month to month contract, the realtor got you a tenent for the month at the rent that you wanted. What did you tink would happen, the tenant would stay for years on a month to month agreemnent. Why do you think you are entitled to recoup the cost of her commission. She did what you agreed to!

Re: Realtor Negligence by Sara on July 28, 2012 @18:07	[ Reply ]

It appears the realtor did what she contracted to do. Find you a tenant that would rent month to month and pay the asking rent. How do you come to feel that's a lack of due diligence on her part. You must have realized that in renting month to month, the tenant could give a 30 day notice to vacate. It looks more like you did not do your due diligence in hiring the realtor.

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Re: Realtor Negligence by Mark on July 28, 2012 @21:22	[ Reply ]

What if the tenants were killed in an accident within the first 30 days. Would you expect the realtor to refund the commission back to you? It makes no differance if the tenants desided to buy or move somewhere else. The rental agreement was month to month, which you as the landlord agreed to. You took the chance on a longer stay and lost. Get the rental back on the market and move on!

Re: Realtor Negligence by NY-LL on July 28, 2012 @22:01	[ Reply ]

The belief that these kinds of unscrupulous real estate practices are an ethical form of business would make one a con artist. The real estate brokerage (real estate agent) and the tenants used the premises as a long-term motel/hotel. In fact, the only ones to profit from the transaction were the real estate brokerage (real estate agent) and the tenants. The real estate brokerage (real estate agent) received a paid commission or tenant finder's fee for an illegitimate tenant. The tenants received a one month tenancy for far less than the cost of a thirty (30) day motel/hotel rental ... (which was the intent for an illegitimate rental). The property owner (landlord) received zero ($0) dollars compensation for the use of the premises. In fact, the monies received for the monthly rent and security were cancelled by the monies paid in commissions. In addition, the property owner (landlord) has the added burden of losses due to unacknowledged legitimate potential prospective tenants and the added preparation of a security deposit settlement statement related to the fraudulent tenancy. The fraudulent tenancy cost the landlord more than the transaction was worth. The property owner (landlord) should post to the real estate brokerage (real estate agent) comment page the events of the fraudulent rental, in order that other potential property owners (landlords) and prospective tenants will be made aware of their unethical business practices. The property owner (landlord) would have every right to sue the real estate brokerage (real estate agent) for the paid commission and finder's fee, due to a lack of due diligence in locating a legitimate tenant.

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Re: Realtor Negligence by Kathy (NY) on July 29, 2012 @00:01	[ Reply ]

nope firtst mistake; you stated it was high end property second; then stated M-t-M lease anyone knows a 'high-end' has a lease of 2 to 5 years if your using a 'realtor' or mangement co. expect them to move trash in just for the fee hint: do your own screening. oh, and read the previous posts here.

Re: Realtor Negligence by jannie (IL) on July 29, 2012 @10:18	[ Reply ]

Whether or not what the realtor did was illegal, probably not, but they took advantage of you and your situation, trying to find a renter for your property. They will, no doubt, do it again if the situation presents itself. In a situation like yours a one year lease or fixed lease should solve that problem, and dump the realtor!

Re: Realtor Negligence by Anonymous on July 29, 2012 @12:29	[ Reply ]

Did the landlord offer the tenant the rental agreement to sign, or did the realtor? Did the landlord go over the lease with the tenant or did the realtor? Did the landlord accept the deposit or the realtor? Did the landlord screen the tenant or did the realtor? Was the rental agreement for month to month? Did the landlord collect the maximum deposit under law? Has the landlord returned the security deposit under law? In order to sue a realtor/broker on a "negligent misrepresentation" theory, the landlord must demonstrate that a statement was made, that the realtor/broker knew that the statement was to be relied upon for a particular purpose, that the statement was false, that its falsity resulted from a lack of due care on the part of the defendant, and that the plaintiff was damaged as a result. This is hard to do, as the landlord was informed of, or had the oppurtunity to be informed of, all terms and conditions pertaining to the agreement. The rental agreement was month to month as agreed upon by all parties. No fraud there... The tenant exercised the tenants right to terminate the month to month with proper notice that landlord accepted. No fraud there... The landlord made a risky decision to accept the tenant on a month to month rental agreement, knowing that either could terminate the agreement with a 30 day notice. No fraud there... The rental agreement most likely has a clause requiring mediation to solve any complains first. No fraud there... The tenant could move out with proper notice for any reason or no reason. No fraud there... The landlord had every oppurtunity to state the terms of the rental agreement and screen the tenant.