Getting paid rent by the Public Trustee

Hey guys,

Has anyone heard of landlords being paid by the Public Trustee??

I am looking at purchasing some units, and as the tenants of all the units have some handicap / disability, I have been told that the Public Trustee is paying for the rent.

Apparently, there has been no problem with tenants being in arears, and the prop manager says rents go in the bank before it is actually due.

He told me that he will be managing the property, but the Public Trustee is actually managing the tenants (as they can't do it for themselves).

What I want to know is that since there is a third party in the equation (i.e. the trustee), does this have any ramifications if I increase rents, evict tenants for breach, etc. (i.e. since I actually get paid by the Trustee) Would these guys be the tenant....I figure no......, would they be responsible for the upkeep of the property, would they be liable for damages, should they be on the tenancy agreement, etc)

Thanks in advance.:)

Cheers,
 
Hey guys,

Has anyone heard of landlords being paid by the Public Trustee??

I am looking at purchasing some units, and as the tenants of all the units have some handicap / disability, I have been told that the Public Trustee is paying for the rent.

Apparently, there has been no problem with tenants being in arears, and the prop manager says rents go in the bank before it is actually due.

He told me that he will be managing the property, but the Public Trustee is actually managing the tenants (as they can't do it for themselves).

What I want to know is that since there is a third party in the equation (i.e. the trustee), does this have any ramifications if I increase rents, evict tenants for breach, etc. (i.e. since I actually get paid by the Trustee) Would these guys be the tenant....I figure no......, would they be responsible for the upkeep of the property, would they be liable for damages, should they be on the tenancy agreement, etc)

Thanks in advance.:)

Cheers,

I have a guy on a disability pension in my unit. My understanding is they get $ #### income and out of this there rent is paid directly so they only recieve what is left. My rent is paid on time always and i have had no problems.Not sure about liability etc but i would say no. They have the freedom to choose where to stay.They just get the rent paid directly before they see it. Its a good set up . As far as rent increases are concerned they have no control.
 
Actually just checked my statement. $1 dollar per fortnight charge by centerlink for direct payment. Good value i think.

Should also add that they have paid up until mid November. The tenant also asked if i mind him planting some flowers and vegies and doing some landscaping. Looks like he might be a very very long term tennant.
 
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Sounds like easy money for the PM. :D
You might have to change his tune if the Public Trustee do a fair bit of the looking after.

Good thinking Gools.....

It does sound 'easier' than 'normal' for the RE Manager.

I will have to negotiate his management commission, if I go through with the purchase. I have the inspection on Tuesday.

Cheers,

F
 
I shouldn't think there's any difference from a normal tenant (with regards to who's responsible for what), with the sole exception of who the person is that deposits the money to the PM. As such, I can't see why the PM's workload would be lower than with any other tenant. If they're emotionally disturbed people, the management overhead may be higher.
 
I shouldn't think there's any difference from a normal tenant (with regards to who's responsible for what), with the sole exception of who the person is that deposits the money to the PM. As such, I can't see why the PM's workload would be lower than with any other tenant. If they're emotionally disturbed people, the management overhead may be higher.

Hey Ozperp.

The only reasoning or conclusion I automatically assumed was that the management company doesn't need to issue reminders, notices, etc to chase rents...phonecalls to chase rents, evict tenants, etc.

It seems that the Public Trustee pays in advance of when the rental is due....(at least from a couple of examples)....This certainly reduces managers workload in rent collection, but you certainly may be correct in saying that they may charge a premium for 'emotionally disturbed people'....but then again, I would call that discrimination......wouldn't you?

As I have just evicted a tenant for actually giving up on paying rent, I know my manager worked his but off, and carried out all notices dillegently, etc, etc, so this part of the rent collection side of the business I assume to be quite effortless.

I do however, take your point on board.

Cheers,

F
 
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