Thanks buzzlight year. Do you mean after the lease expires?
First time at the tribunal
- Thread starter jingo
- Start date
Thanks buzzlight year. Do you mean after the lease expires?
To be effective at the end of the current lease. Therefore if lease expires
15th August, then you need to provide tenant 60 days (+2 working days to cover postage of notice), of any increase which would be, by no later June 13th. Of course, there is nothing in stopping you notifyiong them of the increase now!
If the current achievable rent is more than what they are paying today (and given the current environment, I am assuming yes) , then I would raise it as much as you can (with the advice of your PM and your own DD).
This increase may be the last straw for them. May also give them a reason to 'skip'
15th August, then you need to provide tenant 60 days (+2 working days to cover postage of notice), of any increase which would be, by no later June 13th. Of course, there is nothing in stopping you notifyiong them of the increase now!
If the current achievable rent is more than what they are paying today (and given the current environment, I am assuming yes) , then I would raise it as much as you can (with the advice of your PM and your own DD).
This increase may be the last straw for them. May also give them a reason to 'skip'
To be effective at the end of the current lease. Therefore if lease expires
15th August, then you need to provide tenant 60 days (+2 working days to cover postage of notice), of any increase which would be, by no later June 13th. Of course, there is nothing in stopping you notifyiong them of the increase now!
If the current achievable rent is more than what they are paying today (and given the current environment, I am assuming yes) , then I would raise it as much as you can (with the advice of your PM and your own DD).
This increase may be the last straw for them. May also give them a reason to 'skip'
Thats a great suggestion. I'll run it all by my PM. She indicated that I would be able to get a higher rent for the place than I'm currently (supposed) to be getting!!!!!
What about just changing the locks while they are out and throwing all of their stuff in a skip, hiring a security guard to ensure they don't re-enter the house and chasing them down the road with a big stick. Do you think that would work!!!
What a wonderful fantasy!
What a wonderful fantasy!
Yes, I am hallucinating badly!!!
We have actually done that too. We found out where the tenant moved to and informed their new landlord of why we evicted her.When her bills came, we informed the creditors where she moved to. (she used a variety of names, and we told them all )
One tenant was renting furniture, TV etc.We informed the rental place she was being evicted in 5 days, and as a professional courtesy they should pick up their stuff. They did. (The manager of that store is now our tenant)
I wish we had LL insurance here.
It is hard enough when you put a claim in for Loss Rental Income due to a fire and half the house burning down.(we got 2 months rent...it took 5 months to rebuild)
We go to the tribunal Monday for that.....(fire, 23K, not covered by insurance)
Co workers ask if being a LL is worth all this hassle.
I smile and say "hell yes"
When are you coming back to Australia? You should set up a rental agency. I'd love to appoint you both to manage our properties!!!! I'm sure the tenants would never dare step out of line!!
I'm glad I've got the LL insurance in this instance. I know its a fairly large outlay to insure all of our properties every year. However, when something like this happens it just gives me the peace of mind to know that even if the tenant trashes the place (actually, it could be to our advantage as we could do it up and obtain equity that way) the insurance is there to fall back on.
Thanks for the advice.
Regards Jason.
I believe you issue notice about 60 days prior to the lease expiring or something like that.
I have had a few tenants like that in Frankston and so too has my brother and sister in Frankston. They always seem to pay in the end as they are professional renters and they know they still need to find another place.
I would not be surprised if property managers give these people a reference with another agency just to get rid of them.
I have had a few tenants like that in Frankston and so too has my brother and sister in Frankston. They always seem to pay in the end as they are professional renters and they know they still need to find another place.
I would not be surprised if property managers give these people a reference with another agency just to get rid of them.
Mmmm. Seems like they know the system all too well! I would hope that my PM doesn't give these people a reference just to get rid of them. Although it may fix my problems in the short term, it will never teach these tenants a lesson. If everyone got tough and followed proceedures properly then such tenants would stop playing up!!
Toony, do you think Frankston is worth persevering with. Do you perceive there to be some substantial capital growth about to occur to make it worth continuing with such beligerent tenants?
Here's one experience I'd like to share with you.
Some tenants have all the wrong skills and play the system.
One bad payer slider type tenant used to taunt me by never answering the door even though she was home, which forced me to mail the termination notice to the premises only 4 blocks from the REA office. This notice arrived next day but by NSW law was "deemed" to take 4 working days to arrive - so as soon as the letter arrived in the mail, she would then pay the rent down by just enough days so that 3 days later on the day the termination notice was "deemed" to have arrived in her letterbox, she was actually only 13 days in arrears and not the minimum of 14, thereby rendering the termination notice incorrect and invalid. I ended up gaining orders for termination and possession on the basis of her breaching Tribunal orders to "pay the rent on time and in default termination" and for "serious and persistent breaches". But what a time consuming process it was !!. This tenant made this management a financial loss for the REA and I was the only one who profited (dear tenant, thanks for the training, goodbye, I wish you well and enjoy your multiple breaches listing on T.I.C.A. database). She's probably now doomed to never rent from a REA ever again, as it should be, and she's now cast into the arena of the less wary privately managed rental properties where she will no doubt continue training any unprepared landlords by painful expensive experience.
cheers
crest133
Some tenants have all the wrong skills and play the system.
One bad payer slider type tenant used to taunt me by never answering the door even though she was home, which forced me to mail the termination notice to the premises only 4 blocks from the REA office. This notice arrived next day but by NSW law was "deemed" to take 4 working days to arrive - so as soon as the letter arrived in the mail, she would then pay the rent down by just enough days so that 3 days later on the day the termination notice was "deemed" to have arrived in her letterbox, she was actually only 13 days in arrears and not the minimum of 14, thereby rendering the termination notice incorrect and invalid. I ended up gaining orders for termination and possession on the basis of her breaching Tribunal orders to "pay the rent on time and in default termination" and for "serious and persistent breaches". But what a time consuming process it was !!. This tenant made this management a financial loss for the REA and I was the only one who profited (dear tenant, thanks for the training, goodbye, I wish you well and enjoy your multiple breaches listing on T.I.C.A. database). She's probably now doomed to never rent from a REA ever again, as it should be, and she's now cast into the arena of the less wary privately managed rental properties where she will no doubt continue training any unprepared landlords by painful expensive experience.
cheers
crest133
Yes I do. I believe Frankston is a self contained city unto itself. You dont need to go anywhere near Melbourne. Its the gateway to the Peninsula and its on the Bay. I believe Frankston is very much an underrated area. Its got a Uni, Hospitals, shopping centres, cinemas, proposed harbour. I reckon the upside is limitless. I also believe over time those that cannot afford Frankston will move inland.
I prefer Frankston to places like Dandenong, Cranbourne.
At the end of the day, I have not lost any rent. Yet my properties have shown good growth.
Thanks Toony. I wish my tenants would move themselves away from my property though!
Crest, that experience sounds somewhat alarming. I hope my tenant doesn't have enough up top to go through with such a plan. I guess only time will tell.
Just another thought. I know my tenant receives rental assist. Could it be worthwhile contacting centrelink and letting them know shes not paying rent while still collecting this benefit? I mean, it must be in tax payers interests to report such unfair practices!
Hi Jingo
I dont worry too much about the rent being paid on time. As long as it comes in and they pay according to the schedule they tell the PM. I have a buffer to pay the mortgage.
I always remember my parents whinging and complaining about tenants not paying their rent on time etc and in the end they sold what investent properties they had as they were sick of the hassles. Now they got no properties and wish they kept them. I now focus on the bigger picture.
Dont over extend, have a buffer and keep for the long term.
I dont worry too much about the rent being paid on time. As long as it comes in and they pay according to the schedule they tell the PM. I have a buffer to pay the mortgage.
I always remember my parents whinging and complaining about tenants not paying their rent on time etc and in the end they sold what investent properties they had as they were sick of the hassles. Now they got no properties and wish they kept them. I now focus on the bigger picture.
Dont over extend, have a buffer and keep for the long term.
Thanks Toony. But doesn't this approach prevent you from pursuing other opportunities with your money? You could be using your buffer to either purchase more property, or invest in shares, (or anything else for that matter) thereby getting a better return on your money and growing your asset base more quickly.
Besides, why should we put up with such inadequate terms of payment. My power, gas and phone companies don't share this relaxed view. They are very quick to send reminder notices, and then disconnect their service if you don't pay up. Not to mention put a note on your credit file. I just don't understand why we (property investors) should compromise our own positions to subsidise tenants who blatently play the system.
Regards Jason.
Its the accountant in me. I am conservative in nature. I am in my early 40,s with 2 kids and one income.
I have also heard of many stories where people have had many properties only to have to sell them in a fire sale.
Dont you think properties are overvalued. Now new homeowners / young couples need a $300k mortgage. Thats a bloody lot. I live in Aspendale. Its an average surburb in Melb. Chippies, Tradespeople etc. A house sold up the road from me for $570k and it aint that flash. Its 2 stories, old 1970's thats been rendered.
About 7 yrs ago I spent $10k on IT related managed funds with BT. Now they are worth $3k. I am not saying this will hqppen with property, but i dont believe there is much room for increases. I dont believe there will be much growth in the next 5 yrs anywhere in Australia.
I have also heard of many stories where people have had many properties only to have to sell them in a fire sale.
Dont you think properties are overvalued. Now new homeowners / young couples need a $300k mortgage. Thats a bloody lot. I live in Aspendale. Its an average surburb in Melb. Chippies, Tradespeople etc. A house sold up the road from me for $570k and it aint that flash. Its 2 stories, old 1970's thats been rendered.
About 7 yrs ago I spent $10k on IT related managed funds with BT. Now they are worth $3k. I am not saying this will hqppen with property, but i dont believe there is much room for increases. I dont believe there will be much growth in the next 5 yrs anywhere in Australia.
Hi Toony,
Yes, being forced to sell properties quickly would hinder the road to financial freedom, so your advice to be cautious is prudent.
The property situation in Melbourne is becoming very divided. There are areas that are still very affordable (such as Frankston for example, and areas out West), and areas that seem to be increasing in value each day. (Inner and Bayside blue chip suburbs). I gather these bluechip areas will keep increasing as long as the economy and share market remain stable. They may be the first to take a big plunge if the "goldilocks economy" that we hear about at the moment changes for the worst.
I am certainly not in a position to be able to forecast the future of the property market. There is a great deal of interest in the sharemarket at the moment, possibly driven by the 'renewed' interest in superannuation. (Thanks babyboomers
) Property investment is out of favour with the general population, but I guess everything moves in cycles, and one day it will come back in vogue again! (Can't wait for that to happen)!!I would agree with you though that compared with "the average wage", property in many areas seems to be a tad expensive. Furthermore yields are down so these need to increase substantially to "re-ignite" broader investor interest in the property market.
Regards Jason.
Hi Jingo
Centrelink will rarely take action unless a tenant has done a runner or otherwise left the property with rent unpaid and you have no prospects of recovering it. If the arrears matter still has some possibility of adjudication then the tenant can still say the arrears matter is still in contention so they need the rental assistance. Ring Centrelink first and get the name address & title of the appropriate person who investigates Centrelink Fraud. They'll probably be about the only ones who care. Such a letter complaining to the right person in Centrelink should activate them as keepers and lavish spenders of the public purse.
Some people operate a string of slums or self manage properties with an inadequate system of vetting tenants or lack of knowledge and wonder why they have all the dramas.
Everyone who owns or manages properties has to learn sometime, better before than after.
Reasonable quality properties and careful tenant vetting and knowledgeable professional standard management is the recipe to avoid dramas.
good luck
cheers
crest133
Thanks for the advice Crest.
I shall give centrelink a call and see what they suggest. I don't expect to gain anything financially from doing this, but its the principle that matters to me.
I certainly wouldn't like to self manage a property as there are too many skills required that I don't have. (Not to mention the time factor).
Interesting comment about slum properties. I'm not sure what you mean by this?? The property in question is in reasonable condition. Had archicentre check it out before I bought it, and report came in fine. Good location - walking distance to transport, and large shopping centre. Access to beach, etc.
Yes, I would agree that property investing is a continual learning process.
In this circumstance I originally had the property managed by a real estate agent that was undergoing (unbeknowns to me at the time) significant staff changes and structural problems. Once I realized the extent of the problem, I promptly changed agents. I have 100% confidence in the capabilities of the new agent.
But I would agree with you though that reasonable quality properties, with a good pm and proper tenant selection are vital in order to be successful.
I do wonder though whether my choice to invest in Frankston was wise. My other properties are in much better locations closer to the city, and I have never had a problem with tenants. I have owned these properties for a number of years now.
Thanks Crest,
Your information is valued.
Regards Jason.
Like many others, I've invested (and still do, passionately) in Frankston with little or no problems whatsoever. I've had more problems with bad PMs than I have with bad tenants. And in my 27 years of property investing have had both good and bad (errr....rather "tenants from hell") in both blue-chip and in less desirable areas (locally and interstate). It would be so easy to say, it's all about proper screening of "potential" tenants but that assumpton is far from accurate, as research has shown that at times even the most diligent of checking and double checking, will not reveal the tenant from hell lurking within the dream applicant!!!
If you really believe Frankston has been a poor choice, then off load it. I would never encourage anyone to hold on for the sake of it, if they felt unhappy with its prospects and/or its performance. Some will argue that off loading it is not the thing to do, that you should perserve because there is good CG to be had in these (still undervalued spots) but at the end of the day, it's all about SANF for me. And if you don't feel good about your choice, even the smallest of problems will be magnified.
Sell the headache and buy in the areas that ARE performing well for you, and that will attract the tenants you want (and most certainly deserve). IMO it's about feeling GOOD about your choices, being comfortable with how things are moving along, and clearly you're not (well not about Frankston anyway).
Wealth creation (life?) isn't easy. It's the challenges along the way that you will remember most and that will help you to appreciate the successes; not the ease with which they were attained!!!
Anyway, wishing you all the best.
Jo
