Complaints

• Initial Complaint

  08/08/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  We hired Darin M**** through MacGregor Realty to complete a one year lease placement on our investment property in Tsawwassen, BC. The following issues arose: 1. MacGregor Realty advertised the unit for rent at $100 less per month than we originally agreed to. 2. MacGregor Realty accepted an application, took down the listing only to have the applicant rescind their application and decline the unit. This set the firm back a few days in their search and impacted their ability to find a quality tenant. 3. They placed a new tenant only to have the tenant move to end their tenancy 19 days into a fixed term one year lease. 4. They accepted early termination of the lease, without our consent and was not legally in a position to act on our behalf. 5. They provided inaccurate information to the current tenant around consequences for ending their one year fixed term lease. 6. They maintained communication with the tenant, despite not acting on our behalf as a property management firm. 7. They failed to respond to communication requesting a partial refund for the lease placement fee of $2311.52 when their placed tenant terminated their agreement early, forcing me to re-do their work only 19 days after completion.

  Business response

  31/08/2022

  We are sorry that the Owner, ******** ****** is upset about this situation but this was beyond our control even though MacGregor Realty did try their best to rectify the situation and provide her with another qualified & vetted application which she chose not to accept.
  
  We offer two types of services; Tenant Placement Only and Tenant Placement with Monthly Management.  ******** ****** chose the Tenant Placement Only package.  The Tenant ***** ******* upon moving into the property stated that she found Silverfish in the unit, which she claims would be very harmful to her Father's collection of Antique and valuable books.  ***** gave us 2 months notice with expectations of us securing a new Tenant to replace her.  She was aware that she would lose her security deposit to cover the re-leasing fee and that she would be responsible to cover the rent until a new Tenant took over. 
  *******, in our office confirmed ******* request and was going to immediately start to advertise for a new Tenant to replace ***** and emailed ******** an explanation about why ***** was moving out so soon after the start of her lease.
  
  Unfortunately ******** ****** was very upset that ***** was moving out and the fact that ***** didn't relay this information directly to her.  ***** was a previous placed Tenant of ours at another property that we did a Tenant Placement for and was use to communicating with MacGregor and not the Owners.  ***** was an excellent Tenant, paid her rent in full and on time as per her previous Landlord (who would re-rent to her again should the situation arise.  *****, upon confirmation of where the rent was to go, paid the Owner the rent directly on Monday July 4th (July 1st was a Friday & a long weekend)
  The new replacement Tenant Application that was sent to ******** was rejected by her, claiming that she will find her own Tenant and we were to return the keys.
  
  ******** was given the security deposit that ***** provided, to offset the Lease Up fee that was charged, and ***** is aware she needed to pay the rent until a new Tenant has been secured. 
  As we no longer have communication with ******** we are unaware of  what transpired between her & ***** and am unsure of the outcome
  The Tenancy Act states that if a Tenant breaks their lease they forgo their security deposit & must pay the rent until the property has been re-rented.  MacGregor Realty did their best to mitigate any losses to the Owner but ******** refused our help.
  Thanks and kindest regards,

  Customer response

  07/09/2022

  
  Complaint: 17679222
  
  I am rejecting this response because: on June 30, I emailed Macgregor Realty and inquired as to whether their placed tenant would be providing post dated cheques or etransferring rent. I received an email from ******* indicating that as a lease placement only agreement, it was my responsibility to arrange collection of rent. After I was unable to contact their placed tenant, Macgregor Realty sent an email demanding late rent from their placed tenant, which she promptly paid. On July 19, the tenant provided notice to MacGregor Realty and they provided the following response: 

  "Hi *****
  We have accepted your notice to vacate and will start advertising for occupancy as soon as possible. Note that you will forfeit your security deposit for breaking your Fixed Term lease. We will contact you 24 hours prior to scheduling a showing
  Thank you
  
  Sincerely,
  ******* for
  
  MacGregor Realty & Management
  Phone: (604) 943-5999"

  As a lease placement only, MacGregor Realty did not have the authority to accept notice to end tenancy. They were not an authorized agent to do so adn overstepped their role - despite being very clear with me on their role when I was trying to get rent. MacGregor Realty should have instructed the tenant to provide notice to me dircetly as their landlord and reitereated their role in finding a tenant. In addituon, ******* provided inaccurate information to the tenant. While yes, the tenant would forfeit their security deposit, as per their tenancy agreement for breaking their lease, the tenant was also legally accountable for any loss in rental income if I did not find a suitable replacement tenant. MacGregor Realty also asserted that they would advertise the unit and find a replacement tenant, when I had not authorized them to do so. 

  In MacGregor Realty's response, they indicated that "***** gave us 2 months notice with expectations of us securing a new Tenant to replace her.  She was aware that she would lose her security deposit to cover the re-leasing fee and that she would be responsible to cover the rent until a new Tenant took over." It is not ******* right to assume that MacGregor Realty would find replacement tenants. That is my decision as the owner of the unit. I paid MacGregor a lease placement fee of $2300 and they didn't do an acceptable job with their tenant providing notice 19 days into tenancy. Their claim that ***** was aware that she could be responsible for additional expenses is heresay and I do not believe it to be factual. In fact, ***** has refused to pay a $200 move in fee, despite this being in her rental agreement, because she feels she didn't move in. For MacGregor Realty to suggest that she was well versed in her legal obligations is an exageration.
  

  ******* past interactions with MacGregor Realty is not at all relevant to why they felt it was appropriate to act on my behalf. If anything, they should have had a mutual understanding with ***** to be clear with her on her obligations to me. Further, I believe their relationship with ***** has exposed a conflict of interest. I paid MacGregor Realty to act on my behalf and it appears that they were acting in the best interest of *****, their placed tenant. 

  No one at MacGregor Realty offered to find a replacement tenant for *****. They assumed they would but at no time did they suggest that they "make things right" or rectify the situation and they certainly didn't offer to do this at no cost. Frankly, given the experience I had with this firm, I wouldn't trust their ability to find a suitable tenant. For the record, in a 2 week period, I was presented with two prospective tenants, one that rescinded her application and the placed tenant that terminated the lease 19 into a one year fixed term. Following the tenant's notice to end tenancy, I advertised the unit on ********** and ******** Market Place. I received interest from more than 25 prospective tenants, arranged one showing, and had 8 qualified applications for the unit. I am not a real estate professional but I certainly did the job and did it much better than MacGregor Realty. 

  Lastly, MacGregor Realty failed to address my complaint outlining that the unit was advertised for $100 less than the agreed rate. In 1:1 communication, ******* has suggested that the market failed to accept the $2400 agreed upon term. This is false. They never advertised it at $2400 and immediately went to market at $2300. Once again, they overstepped their authority and acted without my consent. 
  

   

  Sincerely,
  

  
  ******** ******

  Business response

  18/10/2022

  We are sorry that the Owner, ******** ****** is upset about this situation but this was beyond our control even though MacGregor Realty did try their best to rectify the situation and provide her with another qualified & vetted application which she chose not to accept.
  
  We offer two types of services; Tenant Placement Only and Tenant Placement with Monthly Management.  ******** ****** chose the Tenant Placement Only package.  The Tenant ***** ******* upon moving into the property stated that she found Silverfish in the unit, which she claims would be very harmful to her Father's collection of Antique and valuable books.  ***** gave us 2 months notice with expectations of us securing a new Tenant to replace her.  She was aware that she would lose her security deposit to cover the re-leasing fee and that she would be responsible to cover the rent until a new Tenant took over. 
  *******, in our office confirmed ******* request and was going to immediately start to advertise for a new Tenant to replace ***** and emailed ******** an explanation about why ***** was moving out so soon after the start of her lease.
  
  Unfortunately ******** ****** was very upset that ***** was moving out and the fact that ***** didn't relay this information directly to her.  ***** was a previous placed Tenant of ours at another property that we did a Tenant Placement for and was use to communicating with MacGregor and not the Owners.  ***** was an excellent Tenant, paid her rent in full and on time as per her previous Landlord (who would re-rent to her again should the situation arise.  *****, upon confirmation of where the rent was to go, paid the Owner the rent directly on Monday July 4th (July 1st was a Friday & a long weekend)
  The new replacement Tenant Application that was sent to ******** was rejected by her, claiming that she will find her own Tenant and we were to return the keys.
  
  ******** was given the security deposit that ***** provided, to offset the Lease Up fee that was charged, and ***** is aware she needed to pay the rent until a new Tenant has been secured. 
  As we no longer have communication with ******** we are unaware of  what transpired between her & ***** and am unsure of the outcome
  The Tenancy Act states that if a Tenant breaks their lease they forgo their security deposit & must pay the rent until the property has been re-rented.  MacGregor Realty did their best to mitigate any losses to the Owner but ******** refused our help.
  Thanks and kindest regards,
  
   
  
  *******

  Customer response

  02/11/2022

  MacGregor Realty has failed to address my response. This email is their original response to my original complaint. Upon receiving this original response, I provided more information and proof of their negligent service and they have not taken the time to respond to my second email. 
  
  Frankly, this lack of attention is absolutely indicative of the service I received and what has prompted a better business bureau complaint to begin with.
  
  Specifically:
  1. They have failed to address why they accepted notice to end tenancy when they acknowledged that this was a lease placement only agreement. They had an obligation to direct the tenant to me and not act on my behalf. This is completely unacceptable. 
  2. In addition to overstepping the bounds of their authority, they provided the tenant with inaccurate information. As a real estate professional, they should be well versed in consequences for breaking a lease. 
  3. MacGregor Realty claimed that they offered to find a replacement for *****. This is absolutely false. Never once did they apologize for the situation and offer to make good at no cost. In fact, the agency still maintains that they fulfilled their original contract. 
  4. Lastly, MacGregor has completely disregarded my complaint around the error in advertising rent. They argued that the market would not accept $2400 rent and yet, the day the unit was advertised, it was advertised at the lower amount. They have completely brushed their incompetence and their errors under the rug.
  
  ******** 

  Business response

  24/11/2022

  1. They have failed to address why they accepted notice to end tenancy when they acknowledged that this was a lease placement only agreement. They had an obligation to direct the tenant to me and not act on my behalf. This is completely unacceptable. While ******* should have used the verbage "ACKNOWLEDGED" instead of "ACCEPTED" the notice to end her Tenancy, the Tenant does have the right to break her lease.  ******* informed ******** (Owner) of the Tenant's notice immediately upon receipt.  She also informed the tenant of her obligations as per the Tenancy Act regarding this.  EMAIL ATTACHED FOR CONFIRMATION OF TIMELINE.
  
  2. In addition to overstepping the bounds of their authority, they provided the tenant with inaccurate information. As a real estate professional, they should be well versed in consequences for breaking a lease. While yes the Tenant is responsible for rent until re-rented, as per the Tenancy Act Landlords must mitigate any losses to the Tenants by re-advertising as soon as possible to replace them, which MacGregor did immediately.  EMAIL ATTACHED FOR CONFIRMATION OF TENANT OBLIGATIONS.
  
  3. MacGregor Realty claimed that they offered to find a replacement for *****. This is absolutely false. Never once did they apologize for the situation and offer to make good at no cost. In fact, the agency still maintains that they fulfilled their original contract. There is nothing to appologize for, as we did nothing wrong.  We secured a good qualified Tenant (*****), who had issues with SilverFish in the unit and could no longer live in the suite.  We sent ******** another qualified Tenant for approval but she refused any further services from us.  While yes, we charged a one month lease up fee for this Tenant Placement, the Tenant would have lost her security deposit to partially cover that expense and would have to pay rent until a new Tenant replacement found.  ******** was in possession of the deposit as we hold no funds on her behalf.  There would have been no charge to re-lease the property should we have been allowed to fulfil our obligations.
  
  4. Lastly, MacGregor has completely disregarded my complaint around the error in advertising rent. They argued that the market would not accept $2400 rent and yet, the day the unit was advertised, it was advertised at the lower amount. They have completely brushed their incompetence and their errors under the rug.   We had over 8 showings and Gilliean Sillett was the first application for Tenancy (could send evidence of her application if required) but Gilliean rescinded due to price point. We accepted ***** at what the market would bear at a rate of $2300.  When we were first in contact with ******** our recommendation for rent was $2200 per month.  EMAIL ATTACHED FOR CONFIRMATION OF RENT RATE. The rent received from ********'s previous Tenant was $1900 per month.  We were able to increase her rent rate by 21%.  
  

  
  

  Customer response

  27/11/2022

  
  Complaint: 17679222
  
  I am rejecting this response because:

  I hired a real estate professional to conduct services. They acknowledged that they miscommunicated with the tenant and should have directed the tenant to me. I am not pushing paper any longer. Despite admission of accepting notice to end tenancy when they were not in a position to do so, MacGregor Realty still claim they have done no wrong. It is indisputable that MacGregor Realty overstepped their bounds with respect to their contractual obligations.

  Others should be made aware of their lack of professionalism and incompetence. 

  
  Sincerely,
  
  ******** ******

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