For many Australians, the rental market can feel like a minefield at the best of times. With rising rents, fierce competition for properties, and the ever-present worry of dodgy landlords or agents, it’s no wonder many renters feel anxious.
But a recent case has taken those concerns to a new level, raising the question: How safe is your rent money once it’s handed over to a real estate agency?
In a story that sounds more like a plot from a soap opera than real life, Dianne Sandra Huggins, a former real estate sales representative from Mandurah, West Australia (WA), was recently fined and reprimanded after being caught red-handed misusing tenant funds.
Instead of safeguarding the money entrusted to her by renters, Huggins dipped into her employer’s trust account to pay her rent and bond, using $2,700 that belonged to another tenant.
The details are as jaw-dropping as they are concerning. Huggins was living in a rental property managed by her agency, but had failed to pay the required $1,587.20 bond.
When the property owner decided to switch management agencies, Huggins panicked. Rather than come clean, she misappropriated $2,700 from the agency’s trust fund—money a completely unrelated tenant had paid for their bond and rent—and used it to cover her debts.
The deception might have gone unnoticed were it not for a routine audit, which uncovered a shortfall in the trust account. When confronted, Huggins tried to cover her tracks by providing a fake bank receipt, claiming her husband had paid the $2,700.
But the truth soon came out: she had altered an existing receipt to create the fraudulent document.
WA’s State Administrative Tribunal (SAT) didn’t mince words in its findings, stating that Huggins had made unauthorised withdrawals and failed to act honestly. The agency recovered the missing funds from her final salary payment upon her resignation.
Trish Blake, WA’s Commissioner for Consumer Protection, condemned Huggins’ actions.
‘Knowing full well the unpaid bond would be discovered by the new managing agency, she engaged in a series of deceptive acts, including misappropriating another tenant’s funds and forging a bank receipt,’ Blake said.
She also reminded the public that real estate agencies are responsible for holding significant sums of money in trust for tenants and property owners, and that strict regulations and regular audits are in place to protect those funds.
‘Making unauthorised withdrawals from real estate trust funds is a serious offence, and sales representatives or agents who engage in such misconduct will be subject to legal consequences,’ she added.
Have you ever had a bad experience with a real estate agent or property manager? Do you have any tips for fellow renters on how to protect themselves? Share your stories and advice in the comments below.
Also read: Australia’s growing cohort of tenants fear they will rent forever
Thank goodness that NSW has the Rental Bond Board, where we pay our bond to prior to taking up residence in a property and it’s unable to be touched until the end of the lease, and the agent and/or the tenant make a claim for release of the funds.
The Rental Bond Board is the independent custodian of rental bonds paid by tenants to landlords or their agents for residential tenancies.
Day-to-day functions including rental bond lodgement, custody, refund and information services are provided by NSW Fair Trading.
Enquiries about Rental Bonds Online are handled by Service NSW.