Lend me your wisdom

[LoneWolf]

Received an email from my PM today

"It is 2 men, they are both taxi drivers.
They usually have more than the allocated number of people living at the property and do not maintain them very well.
I have rung their current Agent, they say the property is not well looked after and the rent is constantly 2 weeks late."

Now, the question is, should I allow them to rent my IP given the above?
This IP is now close to 4 weeks vacant, and I am pretty keen to lease it out.

PS: the plan for this IP is to demolish and develop later down the track, could be 12, 18, or 24months, depending on the circumstances at the time

 

[Peter_Tersteeg]

How many headaches can you endure between now and when you develop?

 

[LoneWolf]

How many headaches can you endure between now and when you develop?

Pete. Are you suggesting a NO to these applicants

 

[MarkB]

The question is, should I allow them to rent my IP given the above?

The answer is no.

 

[Ace in the Hole]

No, too many potential problems.

 

[DaveM]

They sound like A grade tenants who would be an asset to your rental roll. Normally you could ask Dazz for his advice on tenant selection to put your mind at ease, but he is currently busy standing on one leg and saying BIBBLE.

 

[Corey Batt]

Silly resi investors.

 

[BayView]

At least you know up front what the devil is.

I've had a number of good reports about a prospective tenant, only to find out they were the devil later on.

Hopefully your PM is firm enough and experienced enough to do regular inspections and serve breach notices immediately.

A very swift and strong response to a tardy tenant on the first issue usually gets the required message across that you won't put up with losers for long.

 

[LoneWolf]

Thanks folks for your suggestions

My PM just suggested we hang onto their app, and see if we can get a better applicant. If all else fails, we still have them.
Apparetly she said based on their reference, they wont be renting easily

 

[lizzie]

I'd say no - drop your rent slightly (say, $10/wk) and get someone decent applying

 

[LoneWolf]

Just a quick update from last week.

Received a mail today with a decent applicant, all worked out well!

Thanks for all the suggestions guys

 

[Spades]

Congrats LoneWolf.

When i was renting,i lived next door to a taxi driver,within a month,there were like 10 of them sleeping there,coming and going at all hours.

Bloody noisy too,so i'd crank up my stereo

I walked past there open door one day and i could see 4 beds in the loungeroom alone.

Curry in a hurry,i got onto there PM to do a inspection.

Anyhow it was a blessing in disguise as i purchased a unit not long after.

 

[Peter_Tersteeg]

That's great news.

And yes, to answer the third post, I would reject the application from tenants who got a bad review for a previous PM.

I settled a property 14th of December. We had a couple of applications before Christmas, both were terrible quality and they were rejected. Due to the time of the year, it wasn't until late January that the market got active again and we had several great applications. We were without rent for 6 weeks and I don't regret that decision at all.

Based on previous experience, no tenant at all is better than a bad tenant. At least with no tenant you've still got a chance of finding a good one.

 

[neK]

Just a quick update from last week.

Received a mail today with a decent applicant, all worked out well!

Thanks for all the suggestions guys

I can't believe you even contemplated those guys you mentioned in the first post!

Glad you got a decent tenant in the end.

 

[MTR]

That is great news LW