A landlord in Queensland hired a property manager to oversee an investment property. The manager proposed a $50 weekly rent increase despite the landlord’s explicit objection, then informed the tenant of the increase and claimed acceptance. Before the increase took effect, the tenant ended the lease. The landlord now faces costs for advertising, lost rent, and a new tenant sign-on bonus.
Legal Context
- Property managers in Queensland are bound by the Property Occupations Act 2014 to act within their client’s authority.
- The management agreement typically specifies whether the manager can adjust rent without approval.
Possible Remedies
- The landlord may terminate the agency agreement based on breach of authority.
- Compensation could be claimed if the rent increase directly caused the tenant’s departure.
- Escalation options include Queensland’s Office of Fair Trading, QCAT, or REIQ.
Recommended Steps
- Collect evidence, including emails where the manager admitted discussing the increase before approval.
- Send a written notice to the agent detailing the breach and intent to terminate.
- Seek legal advice if the agency does not cooperate.