"Bad Tenant" Database - when do you put tenants on it?

If you've followed my thread about my horrendous previous tenants from 2009 you'll see I have prime candidates for the list.

As a landlord, I plan not to have too much to do with our properties (hence, we have property managers) but when there are horror tenants, I expect to be involved & wouldn't expect our PM to do it all alone. I'm certain we'll never be in this same situation again. I suppose it was a situation where we had to be involved anyway as originally the house was our PPOR.

Anyway, PM's do the ground work on checking details on applications for prospective tenants and as mine do, I expect them to contact previous Property Managers & landlords for references. In our case, we were told the tenants paid the rent & looked after the properties. That's it.

What they failed to advise us was their personal behavious towards R/E staff & management, incessant unneccessary maintenance requests, etc which then flowed on to us wasting money & time getting them out of the house & then having to deal with their personal mental, physical & financial issues that had nothing to do with us.

Where does the digging end & where do people draw the line at what information they'll part with? When we were asked for references, we told them everything including our current court case (at the time), the issues, but still said honestly they looked after the house & paid the rent.

I would hope in the future if those tenants had to rent elsewhere again, our PM would get a call & again she would give an honest answer. She was stuck too for what to say at times as she felt if she didn't give a good reference we'd be stuck with them, but she's like me where she could only be honest & always blurted it out that they were pains. Still, it's not up to us if someone else wants to take them on. Obviously someone has rented to them now, but they certainly didn't ask us for a reference.

Two PM's they applied with checked up on them on TICA. This records the fact. The tenant then tried to sue us for putting their name on this list when no-one actually has! There's just the record of someone checking. I contacted TICA & they advised NO-ONE has been successful in suing anyone for this. They thought they'd get me for defamation, ontop of everything else they failed to sue me for :)

So, what I'm asking is your opinion on should we put these peoples name on a 'bad tenant' database? Which database? Does this cover all states? etc...
 
Kath, I believe that the "reasons" that permit an agent to list on the databases, will no doubt be covered by State tenancy legislation. In QLD, the landlord must suffer a loss, greater than 4 weeks in rent. In the past, we have had "bad tenents" appeal to the Small Claims Tribunal, to have the lsiting removed, and the Tribunal in all cases, has accepted the tenants version, and the listing has been removed. Active Property Investment Managers, also search the "enquiry" field, to see which agents have searched previously, and then make contact with that agent. You would be surprised what you can turn up that way. While, I think most PM's will agree with your thoughts about widening the reasons for listing, however we do not think it will happen.
Good luck with your IP from now on.
Cheers
Peter Weiss
 
We currently have tenants who could qualify for an alternate tenant data base.

They always pay their rent on time and the property is kept imaculately... but they are absolute serial whingers. If things arn't fixed imediatley (within days and for non emergency items I might add) they complain to the fair trade people. Aparently they are very well known to that particular government agancy

Their references from their previous agent had them as tenants who always paid on time and kept the property very neat and tidy, which is all they could probably say. No mention of their serial winging.

The thing is the past tenant never had any problems with the property, only problem with her is she didn't like to pay the rent all the time.
 
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