Australian Run Property Manager to Serve 15 Months in Prison for Maintenance Fraud

When you are undertaking repairs to your rental property are you certain that the works are being completed satisfactorily on your behalf. You might be wise to seek some proof from your property manager if you are in doubt about the work or uncomfortable with the financial deductions from your rental statements. 

A former property manager from the Run Property Group in Melbourne has been found guilty of jailed after stealing $580,000 through a web of fake invoices and contractors.

Between 2005 and 2011, Leigh Aizen fabricated more than 400 fake maintenance work invoices through the Run Property agency where he was employed mostly for uncompleted maintenance on behalf of property investors and home owners of rental property under his care. At times, no work was ever undertaken.

Such was the sophistication of his underground operation, Mr Aizen created false maintenance companies and paid himself by sending the payments through a web of international banks and offshore accounts.

The court heard that the "elaborate" and "sophisticated" scheme was set up due to pressure from Mr Aizen’s then-partner to maintain her extravagant lifestyle. But the breach of trust of his employers and clients led County Court judge Gabriele Cannon to sentence Mr Aizen to a minimum of 15 months' prison.

"At the end of the day it was your decision to remain in the relationship with your [then] partner and commit the offences which I now sentence you," the judge said. "This was no spur of the moment offending ... but a lengthy course of conduct which you continued until you were discovered," Judge Cannon said.

The property manager has also since repaid $450,000 of the $580,000, and intends to pay back the remaining balance - Thankfully for the victims of this unsavory breach of trust! 

When you are authorizing substantial maintenance works and repairs on your rental property be sure to sight proper quotation documents and supportive photographic evidence of the subject repairs before you instruct your property manager to proceed with the works. If you are being asked to spend considerable amounts of money then you are wise to seek a second quotation from another contractor. I also recommend that if you are in a position to talk with the contractors directly before approving quotes inn order to satisfy yourself that the work is necessary and that all repair options have been taken into consideration. 

When the works are complete your property manager should confirm same with you and confirm the payment amounts that are due to the contractor. You should ensure that your property manager has personally inspected the works on your behalf and can send you some photographs of their inspection. For substantial and costly repairs you should seek to inspect the work yourself if you are able. 

Article Modified by Chris Snell, Property Manager, Australia, 

Article sourced by Written by Steven Cross  Friday, 06 June 2014

http://www.rpmonline.com.au/news/12470-15-months-jail-for-pm-who-stole-over-half-a-million?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin06_06_2014&utm_medium=email

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Trending rental market is good reason for rental management companies to promote good rental management services

Many years ago the Aussie dream of home ownership was both the promotion of government and your grandparents. The concept of being a renter for life was something you did in the UK not in the lucky country, Australia. Well rental management companies and property managers need to pay attention. The tide is turning and the need for continuing rental management services has become exactly that. A report released today by realestateVIEW.com.au presents research data to suggest that the many renters are in the market place for the long haul and they are not ashamed of being tenants. This is good news for the property owner who simply wants good people to, "rent my home".

 "The Housing Sentiment Report – examining the lifestyle preferences and affordability concerns of over 1200 buyers and renters – shows one third of tenants have been in the rental market for five-plus years, with affordability a major deterrent to entering the market.

What is preventing them from buying? 

• Half of renters believe they can’t afford a deposit; 
• 32% believe they can’t afford mortgage payments 
• 28% of renters haven’t bought a property because they can’t afford to buy where they want to live 
• 25% think the market is overpriced 
• 22% believe it’s cheaper to rent 
• 18% have difficulty obtaining finance 
• 16% don’t want to be tied down to one place because of a mortgage 
• 12% have already bought an investment property

As a property investor you need to take some of this data seriously and start to think about your role as a landlord. The future is rosy for investors but the rental success to be enjoyed will depend largely on the rental management company being engaged and the level of rental management services being delivered. Tenants are your customers and if you're not prepared to deliver excellent rental management services at least ensure you have a property manager who is. 

View my free report, 5 Costly Mistakes Landlords Make with their Investment Properties, follow the link for instant access. Written by Chris Snell, Property Manager, Rental Success Blog.

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Rental Management Companies - real estate agents lack ethics and honesty ...

Choosing the right rental management company is a complicated task nowadays given the large number of rental management companies offering rental management services. Whilst rental property management companies are beginning to present themselves as being different to sales companies, both are managed by real estate agents and the relevant statutory requirements. In fact every standalone office requires a licensed estate agent to actively operate and oversee the business.

Rental management services are often overlooked by owners and investors as they pursue discounted rental management fees. Believe it or not ... real estate agents and subsequently rental property managers are notorious for being untrustworthy and dishonest. In fact, the Roy Morgan Image of Professions Survey 2014 (Australia) has confirmed that real estate agents rank among the lowest trusted professionals in Australia. A sample size of 644 men and women across Australia were simply asked to rate or score people in various occupations for honesty and ethical standards. Roy Morgan's survey concluded that, “Once again Car Salesman (3%, down 1%) rank at the bottom of the list – a position they have held for over 30 years. The only other professions in single digits for ‘ethics and honesty’ are Advertising people (8%, down 1%) just behind Real Estate Agents (9%, down 3%).” Number one in the rankings were nurses followed by pharmacists and then doctors. At the bottom of the scale were car salespeople (30th), advertising agents (29th)and real estate agents at 28.

Focusing on rental management fees alone will come at the expense of good quality rental management services. The classic catch phrase of, "pay peanuts and you'll get monkeys", might be a little far fetched but it does beg the question, are rental management services more important in the long run than cheap rental management fees? Given that real estate agents have consistently ranked in the lowest end of the scale of ethics and honesty it might be time that you reviewed your current services agreement with your existing rental management company. Perhaps it is time you reflected on the rental management services you have received from your existing property manager during the past year. Perhaps it is time for you to visit some alternative rental management companies and seriously think about engaging a professional property manager from a credible rental management company who will deliver the proper rental management services you deserve.

Are you feeling uneasy about your rental management company and the rental management services being provided to you for your valuable investment property? Get this free report today, "landlord mistakes", it might be a good step in the right direction. Written by Chris Snell, Property Manager, Rental Success Blog.

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