IP destroyed by tenants

[xyz123]

We have tenants that have been in the property for 6 months. From the beginning they were late with payments and got issued with notice to vacate every 2 weeks, but every 2 weeks they made their token payment which extended them another 2 weeks. Finally, last week, the PM went around on the day they were required to pay up or vacate (no one home, no answer on phones) After 3 days of this, (I don't understand why he couldn't just enter when the vacate notice order came into effect?) PM turned up to find someone in the house not even on the lease in the property and the property trashed. Rubbish everywhere, smashed windows, doors, walls, light fittings removed and just pulled out of ceiling, furniture been tagged and left for us to deal with. Police were involved but advised that unless they confess to doing the damage, the tenants cannot be charged?!?!? It seems like the only thing we can do is take them to VCAT to take the bond. To top it all off, our insurance only covers malicious damage up to 10k and as all the walls are asbestos, the final bill will come in much higher. Oh yeah, and legally we have to store the furniture they left for 90 days at our expense while they decide if they want it or not before we have to pay to remove it! Ok, not really questions here, more of a rant but if anyone has any advice or had similar experience, would appreciate hearing from you.

 

[DaveM]

What insurer are you with

 

[xyz123]

We are with QBE. $750 excess for rent arrears and $750 for damage claim. They are going to assess the property tomorrow or Tuesday

 

[Ausprop]

no real advice for you but have been thru this, it can serve as a wake up call to recognise the riskiness of residential property investing and the premium return you would need to get to in order to invest in this sort of thing

 

[xyz123]

It sure is a wake up call. We will lose a lot of money and it will be many many years if ever, before we make it up through rent/sales process. Shares are looking shiny right now!

 

[Perp]

It sure is a wake up call. We will lose a lot of money and it will be many many years if ever, before we make it up through rent/sales process. Shares are looking shiny right now!

I feel your pain. We had rogue tenants trash our place about 5 years ago, and as it was multi tenancy and we couldn't know who did it, we didn't even get to keep any bonds. We evicted every tenant because 1) nobody would say who was responsible, and 2) the property was rendered unlivable in any case. It cost us about $30-40,000 in lost rental income, repairing damage, and replacing furnishings. Zippo from insurance, bonds, anything.

 

[xyz123]

I feel your pain. We had rogue tenants trash our place about 5 years ago, and as it was multi tenancy and we couldn't know who did it, we didn't even get to keep any bonds. We evicted every tenant because 1) nobody would say who was responsible, and 2) the property was rendered unlivable in any case. It cost us about $30-40,000 in lost rental income, repairing damage, and replacing furnishings. Zippo from insurance, bonds, anything.

Oh no. What a shame. Why are people such animals? I am confident we will get the bond, however as we haven't had property assessed yet, I am fully expecting some get out clause they will have. Or they will have a separate excess for every room or similar. I'm expecting the damage to be a similar cost of yours. Sorry to hear about your bad luck. Hope you've had no issues since

 

[property_girl]

So sorry this has happened to you. It has happened to my father. The police had to come and forcibly removed the junkie tenant and take her away in handcuffs because she refused to budge. My dad once found a place of his flea-infested and the carpets covered with dog poo (as well as the rest of the place trashed). After that, my mum refused to help him clean his properties and told him to get a professional cleaner.

 

[jameso]

That sucks mate. If they were my place I'd burn it down lol.

 

[xyz123]

So sorry this has happened to you. It has happened to my father. The police had to come and forcibly removed the junkie tenant and take her away in handcuffs because she refused to budge. My dad once found a place of his flea-infested and the carpets covered with dog poo (as well as the rest of the place trashed). After that, my mum refused to help him clean his properties and told him to get a professional cleaner.

Oh shameful. Does he still have properties then? Hasn't scared him off? We have 2 and seriously considering selling after this. Of course, will all depend on what the final outcome will be cost wise. I have a sinking feeling it will be hefty.

 

[xyz123]

That sucks mate. If they were my place I'd burn it down lol.

We wish they'd burnt it down too!

 

[property_girl]

Oh shameful. Does he still have properties then? Hasn't scared him off? We have 2 and seriously considering selling after this. Of course, will all depend on what the final outcome will be cost wise. I have a sinking feeling it will be hefty.

Yes, he still has properties. He has been a landlord for more than 50 years, and he seen it all--from tenants who rang him day and night for things like changing light globes; trashed houses; everything. I have learned from him never to increase rent when you have a good tenant. When you have a bad one, try to get rid of them. No, he didn't get scared off. Don't let it scare you off either. These things happen from time to time. For the most part rentals run smoothly and most tenants are good. Every now and then there is a nightmare. I have my own at the moment. Hang in there.

 

[Deltaberry]

That is why I don't buy residential anymore. Commercial, higher yield, tenant pays everything including council rates and insurance and water, six month bond and has a legal obligation to restore the premises when they vacate. Few months ago had a tenant did not pay 3 weeks, he came in next morning to find his shop chained up overnight, legally, no need for VCAT or good for nothing arbitrators. I had all my rent in cash that afternoon.

 

[xyz123]

Hi Property girl,
Thanks, you just made me feel a bit better! Think we will stick with it, we just haven't had it very long and to have this happen so early in the piece is just bad luck I guess. I just finished reading your current dramas. Hope you get it sorted this week. Good luck!

Deltaberry
I like the sound of commercial property. Will be something we will look in to for future investment op.

Thanks everyone so much for your comments. Really appreciate it as feeling very lost and overwhelmed at the moment.

 

[The Y-man]

We had our IP pretty badly trashed.

Insurance paid out quite a bit in the end (carpet, repairs etc) and the place got an unintended makeover, so was ok.

The Y-man

 

[geoffw]

My commercial has been vacant for a while- with a solid lease in place.

I'm owed about $12k. The tenant would love me to lock her out. The lease would cease. As it is she still has a legal obligation to pay.

A new tenant is unlikely. We've been trying.

 

[DaveM]

Geoff is that the regional NSW place?

 

[geoffw]

That's the one.

 

[Nixba]

That's the one.

Hi Geoff,

As a matter of interest, is this the property you bought through a BA?

N.

 

[Nixba]

We have tenants that have been in the property for 6 months. From the beginning they were late with payments and got issued with notice to vacate every 2 weeks, but every 2 weeks they made their token payment which extended them another 2 weeks. Finally, last week, the PM went around on the day they were required to pay up or vacate (no one home, no answer on phones) After 3 days of this, (I don't understand why he couldn't just enter when the vacate notice order came into effect?) PM turned up to find someone in the house not even on the lease in the property and the property trashed. Rubbish everywhere, smashed windows, doors, walls, light fittings removed and just pulled out of ceiling, furniture been tagged and left for us to deal with. Police were involved but advised that unless they confess to doing the damage, the tenants cannot be charged?!?!? It seems like the only thing we can do is take them to VCAT to take the bond. To top it all off, our insurance only covers malicious damage up to 10k and as all the walls are asbestos, the final bill will come in much higher. Oh yeah, and legally we have to store the furniture they left for 90 days at our expense while they decide if they want it or not before we have to pay to remove it! Ok, not really questions here, more of a rant but if anyone has any advice or had similar experience, would appreciate hearing from you.

Hi,

I'm really sorry to hear about this. Stay positive and keep moving forward with getting the issues sorted and property re-tenanted asap.

Tough times don't last, tough people do.

All the best,
N