Landlord’s costly delay leads to failed $11.8k property repair claim

Munday discovered the damage in July 2022 and communicated with the agent over the course of the next few months until September 2022, before the company terminated the management agreement.

It is unclear at what point Munday formally requested that the agent take legal action against the tenant.

The agent ultimately informed her that if she was not happy, she should pursue action with the NSW Civil and Administrative Tribunal (NCAT).

According to The Rental Specialists Glebe principal, Jo Natoli, a landlord could request that an agent pursue action against tenants on their behalf, but they 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 SPI.

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.

Natoli said the case also showed the importance of landlords knowing their legal obligations, regardless of whether they hired an agent to take care of their property.

“They need to be aware of what’s going on with their property, and they need to know the basics so that they can properly advise or make decisions about what course of action they would like the agent to take on their behalf,” she said.

She said while many landlords treated hiring a property manager like an insurance policy, she emphasised that it wasn’t just a way for them to wash their hands of important matters.

“Landlords need to know the basics of property investment and the basics of tenancy legislation, and they also need to be in constant communication with their property managers,” she said.

“They should also review routine inspection reports so they can understand how the property is going in terms of wear and tear and what upgrades, repairs and maintenance are needed, so that nothing comes as a shock to them.”

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.

According to Natoli, it was pivotal for landlords to take action within the three-month timeline, from when the damage was first discovered, allowing them to have a solid chance and to ensure fairness for the tenant.

“If you don’t act within the timeframe specified in the legislation, well then you have no grounds,” she said.

“And it works both ways – tenants are required to observe certain timeframes within the legislation, and the same goes for them. So everybody’s held to the same standards,” she concluded.

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