Tenant asking for repairs when it hasn't to yet settled

M

Mikeyman123

Hi guys,
I have just recently purchased a house with an existing tenant. The settlement is in early June so I don't own it yet.
The agent that sold the property has taken over the property management and called me to say, the tenant wants me to fix various issues including water leaking in shower, security door broken and heater needs servicing.
Apparently the old owner / managers had treated them badly etc.

From my reading, given that I am not the owner yet, they should be asking the original owner to make these repairs. The broken security door is deemed an urgent repair according to consumer affair in victoria given it is making the property unsafe and insecure.

Is it fair to say that I can report the owner on behalf of the tenant to consumer affairs/vcat if this doesn't get sorted prior to settlement？as long as they request it.
I can imagine this stalling to June, and then I will have to fork out the money.
Ps I am in victoria
Regards,
Mike
 
Send them to the existing owner, especially for any urgent issues.

They'll probably stall and defer on non urgent issues. And thats fine, you can decide on their merit, then.
 
Hi Mikeyman123,

Not your problem till after settlement.

What's your solicitor/conveyancer advise?

Cheers Spades.
 
The current owner will just hold off and you will inherit the problems. You take the property problems and all and that is why a building inspection is recommended.
 
It's not going to happen, Mike. If the owner hasn't done that stuff by now, he's not going to rush and do it now that someone has put a deposit down on the place. You might have luck with the security door - the agent should be able to make that happen and take the cost out of the rent.
 
Mikeyman123 said:
Apparently the old owner / managers had treated them badly etc.
Click to expand...

Hi Mike

It's a good opportunity to get off to a good start with the tenant.

They've had a cr*p experience with the current landlord - show them that we're not all bad guys, spend a few dollars and keep them happy.

A small outlay to fix these issues now (which let's face it - the other guy's not going to do) could result in a happier tenant who's not going to try to squeeze every cent out of your every time something minor comes up.

Cheers

Jamie
 
Appreciate the input from all of you.

Agent called back saying the owner will not fix it between now and settlement.

I originally asked the tenants to sign a 12 month lease. They came back with we're planning to move out because it's old and run down etc.
Agent asked - what would it take for you to stay on for another 12 months?
Tenant lists the various issues that need fixing, if they can get fixed than they'll sign on. The odd thing is, they've never bothered complaining to the relevant authorities, VCAT / Consumer Affairs about this which they have every right to as a tenant.

It will get fixed at the end of the day. If they were to move out, another tenant will bring up these issues and they'll have to be dealt with.

I will visit the property this weekend and clear up what needs fixing.

The current property manager is clearly not doing their job, even though there's only 4 weeks until settlement.
 
Hey Mike,

Sounds terrible.

It sounds to me like it's not the PM's fault but the owner. They probably don't have any money to make the repairs - that's why the owners sold the house!

I have in the past cancelled the management agreement with owners who don't do repairs - as it just wastes my time and make me look bad!

I agree with inspecting the house, meeting the tenants and going through all the issues. I'd also have a chat to the PM to find out if they have been keeping up with their rent payments (there is no point bending over backwards for tenants who don't' keep up with their end of the bargain).

Perhaps the current owner may go in half's for more of the urgent things?

Good luck.
 
I agree with all of what's been said. Though I would be a bit cautious of having the agent that sold you the property also managing it as well. It can muddy the waters.

Has he given you the best deal compared to other PMs in the area?
 
He offered 5.5% inc gst. From my experience that's around the lower end but not sure compared to the area for melbourne northern suburbs.
Cheers
 
I was charging 7.7% including GST in the Mornington Peninsula VIC. However it the average rent in that area was about $400ish maybe a tad over.
If that helps..

However..If your going to get a PM to manage it for you, I'd be finding a good one NOT a cheap one.
 
It is the current owners responsibility; but I also agree that keeping the tenant happy (provided they're good tenants, of course) will make for a smoother transition, especially when they look to leave.

5.5% is quite cheap, most standard fees are around the 7.7% mark.

Also, for what it's worth, the security door isn't an urgent repair as it's not a requirement, if it were the front door - then yes. In saying that, I personally very dislike opening the door to a stranger, without something between us.
 
Mikeyman123 said:
Appreciate the input from all of you.

Agent called back saying the owner will not fix it between now and settlement.

I originally asked the tenants to sign a 12 month lease. They came back with we're planning to move out because it's old and run down etc.
Agent asked - what would it take for you to stay on for another 12 months?
Tenant lists the various issues that need fixing, if they can get fixed than they'll sign on. The odd thing is, they've never bothered complaining to the relevant authorities, VCAT / Consumer Affairs about this which they have every right to as a tenant.

It will get fixed at the end of the day. If they were to move out, another tenant will bring up these issues and they'll have to be dealt with.

I will visit the property this weekend and clear up what needs fixing.

The current property manager is clearly not doing their job, even though there's only 4 weeks until settlement.
Click to expand...

Just to play devils advocate here for a second, but how do you know the tenant is not just acting up for a bit of attention like a child? Maybe the owner is selling because he's sick of dealing with these tenants and their endless list of demands? Maybe that'll continue once you pander their needs?

In any case, why not give somersoftian Lil Skater a go at the pm gig? I bet she'd be fair with the tenant's needs.
 
Hi

I wonder if the existing tenant has continually complained about these exact issues for the last 12 months or so and the owner just keeps delaying the costs/issue and has now had enough and is selling the property.

I would ask the current tenant how long have the problems existed and have they made a written request to their PM and current landlord about having the items fixed and what was the response.

Did the current owner have a duty of car or did the existing PM have a duty of care to disclose these issues to the new buyer? Was this a case of mis-representation?

I am thinking that you may be able to get some consideration from the seller to help sweeten the costs involved.

Something is not right if a landlord to be is getting these type of repair requests before settlement has taken place.

How did the place look when you inspected it? Was the building in good condition?, were the tenants messy or clean?

If the building is not in excellent condition and needs some work done then do it. But if the tenant is busting chops give whatever notice to vacate (90 days or whatever) and find a better tenant.

Best of luck.

Regards,

alicudi
 
alicudi said:
Did the current owner have a duty of car or did the existing PM have a duty of care to disclose these issues to the new buyer? Was this a case of mis-representation?

I am thinking that you may be able to get some consideration from the seller to help sweeten the costs involved.
Click to expand...

Nope. It is likely the buyer will have to wear these as they buy the building in the condition it is in, subject to any special agreement in the contract.
 
G'day fellas.
This is actually all pretty interesting. To put it into perspective, The family of five (3 primary school aged kids) haved lived there for almost 4-5 years. It is a 2 bedroom house and I believe only one is working.
As mentioned earlier, they came up with the list because I asked the real estate agent to keep them on for another 12 months (he said the new investor will fix these), but they are using this opportunity as a bargaining chip semi threatening to say they are looking to move.
I checked it out, took photos and noted them down.
1 - blocked sink in toilet
2 - curtains not closing
3- gas heater wasn't working?
4- air con needs cleaning
5- kitchen cabinet door was removed
6- garage metal door not opening because the concrete ground had slightly moved up so it was scraping
7- gate was loose
8-toilet supposedly doesn't flush properly

These problems don't happen overnight and to me, it seems like they have lived with it for the last couple of years and are using this opportunity to fix problems they may have caused as well. Told me they asked the various property managers in the past to fix the plumbing but problems reoccured.
It's also funny cos a friend of his was there and said, I'm renting and i'm paying $1,400 per month for a new townhouse, 3 bedroom with ensuite, which is only $100 more than this place. Trying to make me feel like there are better bargains out there. I looked on domain after I left and these 3 BR townhouses are going for $350++ a week so is clearly talking out of his ****.

One question is - WTF have the previous property managers been doing? have they not inspected the place in the last 4 years? What is the purpose of a tenant bond if a landlord has to repair things like curtains not closing etc.

Also - The tenant bond is only $300 which is rediculously low, equivalent to one weeks rent which is also about $20-30 below market (I guess the conditions reflect this)

At the end of the day, they wouldn't have listed these problems if I didn't ask the 12 month contract, but at least I know what sort of tenants they are. For all I know, they probably don't have the capacity to move and can deal with a month to month lease. If they wanted to move, than they should have.

For any PM's out there - how highly would they rate as a potential tenant candidate, given that they have 3 young kids, one income earner etc. is it easy for their situation to move?

My biggest concern is if I do fix up these issues, every time something else pop up, they will get me fix it.

At the beginning of the conversation, they acted dumb, but they got smart afterwards as I told them between now and settlement, it is not my problem and you should be telling the property manager to fix it, as you have tenant rights. He got frustrated that I noted down the issues and then suddenly I tell him to call up the property manager on Monday. I responded - regardless of it settling in June or in 3-6 months time, you have your rights as a tenant to get these things fixed and it's not my problem yet but they got smart saying because I signed the contract, and given my 10% deposit - I am the owner. Ha ha, not yet.

If they do end up moving, than I can probably spend $20k to renovate, and increase rent by $30/week (need to check market rates but I think that's feasible) but I'd like to preserve cash flow in the near term.

Cheers fellas
 
Sounds like a pretty standard scenario where a tenants been there for a while with an owner that is stingey on the maintenance.

Nothing really sinister to it?

If I was a tenant in that situation, I'd be using the opportunity to get the place fixed up too.
 
I think you are dealing with three issues here. Firstly the old owner, who didn't want to spend money on the place. Secondly the tenant who has unrealistic expectations (curtains that won't close?). Finally the amount of bond that you say was lodged. I'm not sure of VIC but here, the agent can request an extra payment to bring it in line with the new rent, when there's an increase, meaning you've always got 4 weeks sitting there.

So, it's a 2 bedroom house with 5 people living in it? That's rather squashy and will mean more wear & tear than a couple with one child. Why not issue them notice, clean & repair, the place. Do anything that you feel it needs & then re-let it. You'll get a higher rent, and probably better tenants.

If you do keep them on, this is my recommendation from the list of 'issues'.

1 - blocked sink in toilet
2 - curtains not closing WTF?
3- gas heater wasn't working? fix
4- air con needs cleaning tenants should be asked to clean it
5- kitchen cabinet door was removed if tenants removed it, why? they can put it back on
6- garage metal door not opening because the concrete ground had slightly moved up so it was scraping fix
7- gate was loose look at this, but use common sense
8-toilet supposedly doesn't flush properly same as NO 1, there's an issue with the plumbing in the bathroom.
 
I think it is time for these tenants to join their friend in the new townhouses up the street where they will be much happier.
 
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