Small but annoying problem

From: Debbie .


I have a problem with one of my IP's that I am hoping someone can shed some light on.

It is situated interstate and the house next door to it is a housing department home. All was going reasonable until the tenants next door moved out and new one's moved in.

They are feral (and that's being nice). The kids have twice broken windows all up and down the street (my place included). They have removed bricks from the entry stairs to the property (how I don't know) and are making life miserable for my tenant.

Added to this the fact that I would like the current tenant to move on as he is late with the rent much too often.

I feel trapped because if I get rid of my current tenant the house will be vacant for a while (what damage could they do to a house they know is vacant?), also who in their right mind would lease this property now? (I know I wouldn't).

After speaking to the agent she said that she has complained to the housing department, but has been told that nothing can be done.

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Reply: 1
From: Charlie McCormack

Hi Debbie,

I suggest you could put a security camera in to catch them in the act.

Once you have this footage you can remove the camera and maybe use it again in the future or sell it to someone else who might need it.

Once you have the footage show it to the parents and threaten legal action, they more than likely will move or pay for the damage.

You would rather they move though.

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Reply: 1.1
From: Duncan M

Today Tonight would love the story! But thats not particularly useful to

I'm unsure of other States, but certainly in SA, you dont need to be a party
to the Residential Tenancies Lease in order to seek an order from the
Tribunal to terminate the lease of a Tenant (even a Public Housing one), if
the Tenants are interfering with your 'peaceful' enjoyment of your property
(or words something like that)..

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Reply: 1.1.1
From: Mark Petterwood


I'm a great believer that when you buy an IP you are simply buying a box that will make you money.

That box should be well researched of course and meet the financial requirements of the purchaser.

If my box stops making me money and because of situations that are out of my control will not continue to make me money then I get rid of that box.

Hopefully when you sell your box you come out in front so you can go and buy another box that will give you what you want.

Ideally you should never sell your boxes but don't keep them if they will not give you what you need.

A little food for thought.


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From: Mike TheBloodyIdiot


I am really surprised not to see any suggestions here from Rob Forward - he is the biggest advocate of buying next to public housing... Just kidding.

A bit of summary on choices offered so far.

1. Security camera. Good, but chances are they will steal it. Besides, how often you have to change the tape in the recorder? Movement activated?
2.Eviction through Residential Tribunal. Try it, and you will soon discover that all people who form this system see their main duty in playing deaf. Anyway, my guess (based on my experience - alas) you will be very lucky if you can evict them in less than 12 months. And do not forget, there will be others who will come after that - and they will be the same, if not worse.

3. Selling. Properties near public housing take incredibly long to sell, and you can loose almost all of your cap growth, especially if prospective buyers see there is a problem (like broken glass)

I personally resolved this problem by putting high fence around the property and advertising property through NSW Deaf Society. Now I have 2 mute sisters living in the house who simply do not care about noise. They pay market rent, but as a sweetener I help them with gardening, lawnmoving, etc. Nice people - I will marry one of them when my wife kicks me out. :).

But if neighbors break windows - this is another story. I would consider renting house out to police officer. Get to nearest police station(s) - there is a good chance that somebody will take an advantage of good conditions you can offer.
Does not necessarily to be a low rent. Consider this -
Step1: You pay bond for them
Step2: Charge market rent, but include what they want - like nice furniture, TV, home theater, whatever they need - buy it on interest free terms
Step3: Claim depreciation on inclusions
Step4: On termination of the lease they take "broken goods" with them, you claim "their" bond (for breaking your goods), and writing off residual value of goods.

If it comes down to low rent, talk to your neighbors
who suffer from the same tenants. Chances are that they will choose to contribute $10 a week towards your loss of rent just to have somebody around who can pacify those idiots who are terrorising the whole neighbourhood.

Also, you can attack housing department on weekly basis and demand them to sell the troubled property to yourself.

Hope this helps,

Mike - self deluded idiot
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Reply: 1.1.2
From: Michele B

That's right Dunc - neighbours can have tenants evicted. Anyone in SA with a similar problem could call Margaret Kohlhagen of SA Landlords Assoc on 0419 804 509 for details.
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