My IP was sub-let ?!!!! risks?

Hi All,

I had posted a thread a number of months ago about renovating a property where the tenants had agreed to have it renovated and then they wouldn't be available for quotes multiple times and then when we ultimately did have quotes, said to they couldn't tell when they are home when they are not.

So I decided to have it vacated. In about 10 days the 90 day period gets over. Tenants decided earlier in the week that they were leaving today.

I was fortunate to have the painter available and the blinds guys ready to have the works done from Monday.

That aside, today we did an inspection of the property with our PM agency's principal as the PM was not available.

The tenants were due to leave at 3:00pm but at 3:30pm they were still taking the stuff out and putting it in a ute. It all looked pretty shabby. Went in....all blinds and curtains were off. But I wasn't complaining as the painter was due to remove them anyway. Following that I was looking around....it appeared three people lived there. Two filipino ladies and a man in 40's ??

So the young girl said that they really wanted to stay. Followed by the older lady asking our PM principal that the property has been readvertised for higher. She was a bit gobsmacked that it was re-advertised...So I told her that they agreed to have it renovated but weren't available. But then I was quiet as it's the PM's job to do the explaining. The young girl was indicating they were okay to have it painted :eek:

Anyway after we left, and thought a bit over it, had a gut feeling the property was potentially sub-let. The tenant on the lease is a CPA with a tax business in the area with a six figure turnover. While these tenants looked from a really low socio-economic and uneducated background.

We called our PM principal and said since the tenants still hadn't left we would be doing an inspection tomorrow morning. And let him know our thoughts. He said he would look into it on Monday.

And a painter who had quoted me had said that he couldn't understand what's wrong with these people as everytime he called someone took a message and the tenant on the lease himself wasn't easy to get access to?

What are the risks with sub letting? I feel rather wronged at the moment. Especially when the "tenant" on the lease said he was ALWAYS too busy etc etc to get hold of.

I'm surprised the PM didn't pick on it. But how can they if they have 100's of properties to manage? I don't expect them to memorise the tenant's face.

Thanks,
Ms Ali.
 
Explains why the tenant didnt want a painter in there during the tenancy as they would have been discovered that they were subletting.

The accountant tenant probably rented it by the room and was making $$$ a week profit.
 
...And he probably doesn't report this income in his tax....(sis says "talk about tax avoidance":rolleyes:)

What are the risks?

Apparently the tenant got approved for another property as per our PM. When we left we saw the ute turning into another complex on the next street.
 
I think it is a risky situation. You have no control who is living in your house. You don't want the risk. We had a neighbor who rented their house and the tenant sublet it out. At one stage prostitutes were going in and out and when it was sold the new owners found drugs and needles hidden up in light fittings.
 
Innovating thinking I'd have to say. At least he was coming positively geared at the end of the day. Low risk and some return for signing a lease for him!

Thanks Jenni! I went back to emails when the PM had sent me info about the tenants:

- Husband and wife, no children
- Husband owns his own business (accountant)
- According to his business activity statement he makes approximately $100,000 profit p/a
- He has a business account which has $2000.00 in it with numerous high figure deposits and a savings account with $67,000 in it.
- They have been renting a property in [Street] for the past 8 and a half years through LJ Hooker paying $270.00p/w. They have excellent rental history and are only moving due to the sale of the property.
- The wife does not work, but is at university
- They are Philippine
 
Visited the property this morning. Broken chairs left in the back yard. The garage had an old small TV, TV trolley and some other stuff. Both bins were full to the top with broken chairs/furniture/clothes.

My memory fails me, but I think they changed all wardrobe doors which were not mirrored to mirrored doors! But I have no photos and no proof. One of the painters who went to the property for a quote had told me the doors were not mirrored.

..But they look okay...
 
Visited the property this morning. Broken chairs left in the back yard. The garage had an old small TV, TV trolley and some other stuff. Both bins were full to the top with broken chairs/furniture/clothes.

Get your PM to arrange rubbisn removal and deduct cost from the bond

My memory fails me, but I think they changed all wardrobe doors which were not mirrored to mirrored doors! But I have no photos and no proof. One of the painters who went to the property for a quote had told me the doors were not mirrored.

..But they look okay...

Thats weird as mirrored doors would be a couple of hundred a set... why would a tenant with shabby furniture and hardly a dollar to rub together be replacing wardrobe doors???
 
Get your PM to arrange rubbisn removal and deduct cost from the bond



Thats weird as mirrored doors would be a couple of hundred a set... why would a tenant with shabby furniture and hardly a dollar to rub together be replacing wardrobe doors???

Perhaps along with their sub-letting activities, they were undertaking other more amorous related commercial exploits......filming studio requiring props including mirrors.......... :eek:

MsAli, it's part of the game we play. Do not take it personally. There will always be tenants like this and much, much worse.
 
Perhaps along with their sub-letting activities, they were undertaking other more amorous related commercial exploits......filming studio requiring props including mirrors.......... :eek:

It was my 1st thought when I read this post. Was told a story about tenants on the central coast that skip without paying and left a whole lot of mattresses lined up in the garage and family room. Turned out that the place was used as a swingers club.

MsAli, it's part of the game we play. Do not take it personally. There will always be tenants like this and much, much worse.

Concur, don't take it personally. Feel pi###off then get on with it. Onward and upward.

Cheers
 
Cheers guys. I spoke to a neighbour who thought only a guy and hi gf lived there. But that doesn't make sense.

I have no proof for the wardrobe doors as my memory has totally failed me and I have no photos. The rest of the property was left clean. I wouldn't have minded the shower area left a bit cleaner but it's arguable whose responsibility is if some mould forms on the tiles.

Will be getting in touch with the PM and the principal who attended to the property with us yesterday.
 
Some of these items in the garage look like fly screens. I can't determine where they came out of? May be apply to the second pic with the window aircon ..
 

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