Tenants went to Consumer Affairs... and got a shock I think!

DavidMc

DavidMc

Following on from GoAnna's 'soft landlady' thread, I too have been a pretty soft landlord.

After deciding that one set of tenants didn't deserve to have my IP at under market rates any longer, I raised it from $210pw to $250pw.

As expected they flipped out and verbally abused my PM. They flipped out when it went from $200 to $210 a few years ago, swearing at my maintence guy. My PM ensured them this was a reasonable amount and they were invited to compare against rents in the area.

They decided to just go straight to consumer affairs. A full rent review was conducted on the property. Several agents in the area were asked to give a rental assessment on the property and they performed their own research.

They assessed the property at $260pw. Hopefully a humbling experience for them.

It's nice to see the system working.
 
Well done David, nice story to hear.

You would have thought the tenants might have jumped on the internet for 5mins and checked out other rentals before taking it to Consumer Affairs! :rolleyes:

Are they staying on, or moving out?
 
DavidMc said:
A full rent review was conducted on the property. Several agents in the area were asked to give a rental assessment on the property and they performed their own research.
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Can I ask David,

1. Who ordered the full rent review ?? The tenant, or you off your own bat or did the Dept conduct it with or without your involvement / permission ??

2. Who paid for the assessment - the tenant requesting it, or you, or the taxpayer via the Dept...or was it done free by the REA's ??


I'm staggered. To me, it's very clear who's running the show, and mores the point, who has the power of legislation behind them in this contractual relationship you have with them. Ouch.

If it was me, the ol' "don't come Monday" 90 day no-excuse-necessary form would have been immediately whipped out....

Actually, can I ask another question....

3. How long are you going to put up with that nonsense for ??
 
Dazzling said:
1. Who ordered the full rent review ?? The tenant, or you off your own bat or did the Dept conduct it with or without your involvement / permission ??
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I only found out about it after the event via my PM. I believe the tenants requested it via Consumer Affairs. I didn't have anything to do with it.

Dazzling said:
2. Who paid for the assessment - the tenant requesting it, or you, or the taxpayer via the Dept...or was it done free by the REA's ??
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Not me. Tax payers I guess?

Unsure if the REA's did it for free or if there was any quote lying on their part (thinking they are getting new business).

Dazzling said:
I'm staggered. To me, it's very clear who's running the show, and mores the point, who has the power of legislation behind them in this contractual relationship you have with them. Ouch.

If it was me, the ol' "don't come Monday" 90 day no-excuse-necessary form would have been immediately whipped out....

Actually, can I ask another question....

3. How long are you going to put up with that nonsense for ??
Click to expand...

To be honest it doesn't bother me too much. As long as they pay the rent on time and leave the place as they found it minus fair wear and tear.

You think such an act is an indication it's in my best interest to be 'requiring this property vacant for renovation' (or just 'no reason')? Am I too soft?

BTW I thought it was 120 days in Victoria? Probably different between the states.
 
steveadl said:
Well done David, nice story to hear.

You would have thought the tenants might have jumped on the internet for 5mins and checked out other rentals before taking it to Consumer Affairs! :rolleyes:

Are they staying on, or moving out?
Click to expand...

I know! Or poke their head in a local real estate agent, they're plenty of them all with bugger all to let. I think they just didn't want to believe it. Hmmm... petrol goes up, wages go up, food prices go up, interest rates go up, but rent must stay the same and paying for it is optional!

I think they've already signed up a 6 month lease.
 
DavidMc said:
I know! Or poke their head in a local real estate agent, they're plenty of them all with bugger all to let. I think they just didn't want to believe it. Hmmm... petrol goes up, wages go up, food prices go up, interest rates go up, but rent must stay the same and paying for it is optional!

I think they've already signed up a 6 month lease.
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Make sure you put it up to full market again at 6 months. Fingers crossed the market rate increases rapidly and they get a nasty surprise when you up it to $290pw.

oops, slipped into 'evil landlord' mode there didn't I.... ;)
 
DavidMc said:
I know! Or poke their head in a local real estate agent, they're plenty of them all with bugger all to let. I think they just didn't want to believe it. Hmmm... petrol goes up, wages go up, food prices go up, interest rates go up, but rent must stay the same and paying for it is optional!
Click to expand...

LOL - An aquaintance was recently saying he didn't care less about the interest rate rises cause it doesn't affect him as he's renting. We're just waiting for his lease to come due so he can get a reality check. Then he'll just bag 'greedy landlords' some more I guess.
 
If they have not signed the agreement for the rent increase at $210 I would use this as an opportunity to increase it to $260 now. If you can't then increase it to the right market amount as soon as possible. This issue aside, you should be getting max market rent for your property. A loss of $50 per week is huge!
 
Hmmm... calling my PM right now.

I certainly haven't signed it yet... maybe $260pw (you know, market rate according to the tenants) is the way to go. I think it'll send a powerful message that I'm fair but not to be stuffed around.
 
Hell yeah Dave, Xenia's right! I thought it was too late. Up it to $260pw now, especially with the proof they themselves helped you get!!
 
Must have been the week for landlords....My soon to be ex tenants went to the tribunal today to try to get $150 a week compenstaion for the stress of having 6 open "for inspections" when I was selling... they said it was all to stressful for them. They hadnt filled out the paperwork properly and when asked how much they wanted as they hadnt filled in an amount stated they would start at 150 a week and barter from there...the judge explained they dont barter and that the owner had the right to sell and as we had done everything according to the book they had recall for compensation.... just wish I had been there.
 
DavidMc said:
Hmmm... calling my PM right now.

I certainly haven't signed it yet... maybe $260pw (you know, market rate according to the tenants) is the way to go. I think it'll send a powerful message that I'm fair but not to be stuffed around.
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Most definately increase the rent to $260. They'll be kicking themselves that they volunteered you an extra $20 per week rent and will hopefully think twice before being stupid again.

(If it were me I would give them the boot and get someone else in there who won't give you such hassles every time you increase the rent though).
 
startled... said:
Must have been the week for landlords....My soon to be ex tenants went to the tribunal today to try to get $150 a week compenstaion for the stress of having 6 open "for inspections" when I was selling... they said it was all to stressful for them. They hadnt filled out the paperwork properly and when asked how much they wanted as they hadnt filled in an amount stated they would start at 150 a week and barter from there...the judge explained they dont barter and that the owner had the right to sell and as we had done everything according to the book they had recall for compensation.... just wish I had been there.
Click to expand...

Definitely a week for feeble minded tenants. One of mine left after lots tardiness in rent money over the past year.

No forwarding address, and lots of final notice type letters in the mail box. They did not cleanup, the bond almost covered the cleanup, but i am up for about $50 plus the lost rent etc.
I love being a landlord!:D:D
 
DavidMc said:
Too late... it's all already gone through.

5.5 months till next review...
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That’s fine David. You’ve done well! Your tenant will be better conditioned to the state of the market next time they receive a notice of rent increase.

No need to give them the boot just for whinging. Let them stay as long as they meet your quite reasonable terms (pay the rent on time and leave the place as they found it minus fair wear and tear).

My thinking is much like yours - I’m sure my tenants whinge, gripe and moan behind my back all of the time but that’s fine by me as long as they keep their end of the bargain.

If truth be known, I’ve been heard complaining about a particular securitized lender recently but I wouldn’t expect them to give me the boot just for whinging.
 
DavidMc said:
Hmmm... petrol goes up, wages go up, food prices go up, interest rates go up, but rent must stay the same and paying for it is optional!QUOTE]

My thoughts exactly! the property managers in my office are constantly struggling to get rent increases past tenants, particularly ones who have been the property a long time. Believe it or not we regularly receive letters from tenants asking for a reduction because they have been there so long. In the current market where we are seeing huge rental increases our landlords are better off having some of these tenants leave so they can really get a descent increase. As for the paying for it optional... it will never cease to amaze me the amount of tenants who do not have rent as their top priority! "its christmas, it was my brother birthday, well i have just been on holidays so things are a little tight" What the?? last time i checked having somewhere to live was more important then any of these things!!
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