In Vic, (my understanding) where bonds are given, and people are expected to repay them if at the end of the tenancy there is anything taken out of the bond. If anything needs to be taken out of the bond it must go to VCAT. If a VCAT hearing is required those tenants will be on a list from VCAT for going to court over matter, which is a matter of public record. This can then damage their chances of getting another rental because REA can check on this.
Over the boarder in NSW weirder things happen in my opinion. I've just found out via possible tenants applying for my IP who were from NSW. Interesting stuff. Up to 3.5 weeks ago according to the department of housing of NSW, tenants could apply for their bond for a private rental, and there were no checks or balances occurring for the money being required to be paid back. Gob smacked, I think I asked the same fellow on the phone a few times. Yes, he told me I heard it right, they didn't expect the money back and you could just walk in and get the bond money
Obviously they had been bluffing, and apparently their accounting system was not able to cope with such minor details. People had figured out that they could 'work' the system. 'Work' really ain't the best word here, but you know what I mean. They have just changed the system so that people are accountable!
I rang their reference (REA) in NSW, who also told me a few things about the NSW system. Tica is where people are 'black listed'. However the RE agent does not have to be a member of Tica, and apparently because the license fees for Tica are high many REA's are not registered, so bad tenants don't even make it onto that list.... so even checking the list does not mean that all the bad tenants are on there. Rang Tica, who informed me that their service is an 'essential' and part of doing the best checks possible and great 'insurance' against getting bad tenants. However the cost for a casual membership fee (in my case to check 1 set of potential tenants) was $286 The guy from Tica suggested that the member ship was actually for two checks (one on each adult), and that the fee was very reasonable and I should purchase a membership. Seriously, I doubt most of my potential tenants are going to be from NSW to warrant such an expense.
The tenants were completely unsuitable for the property, for a number of reasons including a bad rental history as well as a bad credit rating. Not just because they were from NSW, so I need not go to the expense anyway.
It does make me think though. Interesting conversations.
Over the boarder in NSW weirder things happen in my opinion. I've just found out via possible tenants applying for my IP who were from NSW. Interesting stuff. Up to 3.5 weeks ago according to the department of housing of NSW, tenants could apply for their bond for a private rental, and there were no checks or balances occurring for the money being required to be paid back. Gob smacked, I think I asked the same fellow on the phone a few times. Yes, he told me I heard it right, they didn't expect the money back and you could just walk in and get the bond money
Obviously they had been bluffing, and apparently their accounting system was not able to cope with such minor details. People had figured out that they could 'work' the system. 'Work' really ain't the best word here, but you know what I mean. They have just changed the system so that people are accountable! I rang their reference (REA) in NSW, who also told me a few things about the NSW system. Tica is where people are 'black listed'. However the RE agent does not have to be a member of Tica, and apparently because the license fees for Tica are high many REA's are not registered, so bad tenants don't even make it onto that list.... so even checking the list does not mean that all the bad tenants are on there. Rang Tica, who informed me that their service is an 'essential' and part of doing the best checks possible and great 'insurance' against getting bad tenants. However the cost for a casual membership fee (in my case to check 1 set of potential tenants) was $286
The guy from Tica suggested that the member ship was actually for two checks (one on each adult), and that the fee was very reasonable and I should purchase a membership. Seriously, I doubt most of my potential tenants are going to be from NSW to warrant such an expense. The tenants were completely unsuitable for the property, for a number of reasons including a bad rental history as well as a bad credit rating. Not just because they were from NSW, so I need not go to the expense anyway.
It does make me think though. Interesting conversations.
