Tenant defaulted......sob story....what should I do?

[ballontree]

I called the PM today, and was told that they will now need to send a letter for the tenant to evict - 2 weeks notice!!

I was told the letter last Wed is a letter that warns the tenant we will evict him if he don't pay up!

the PM seemed to be on tenant's side, and when I told the PM the banks will continue to charge me interest even if the tenant don't pay the rent: "yeah right" was the reply.

I asked them why the tenant is able to miss 3 fortnightly payments before I was notified; was told that the tenant kept promising to pay up but didn't.

 

[ballontree]

We use The Proffessionals in Melton and so far they have been great. Did have PRD looking after it, what a nightmare, 9 pm's in 12 months and nightmare tenants to boot. So shop around, there are a few good ones.

how do you go about changing PM? I couldn't find the contract that I signed with the PM; not sure how many days notice to give.

If I were to change PM now, without giving them notice, would I have further problems down the track?

just worried that if we change PM now, and if need to go to court to evict the tenant out, the new PM wouldn't know the in and out of this case?

 

[ballontree]

just found the contract for the PM; they are using standard REIV Exclusive Leasing and Managing Authority: Residential Property form.

Couldn't find the termination clause or notice period anywhere.......

 

[AlmostBob]

never sign any standard contract
never sign a contract that isnt complete, to your satisfaction.

 

[DEC]

Similar thing happened to me recently. Tenant got horribly sick and couldn't pay anymore.

Could they still buy beer and ciggies , car repayments and foxtel or was it just you who they couldn't pay?

 

[callander]

In vic there is no exclusive period for managing a tenancy only leasing so basically you find a new agent and sign an authority with them and they will arrange to take over the tenancy. once you have signed the authority it should only take 48 hours to have the file transferred to the new agency.

Shop around as there a plenty that you should avoid in Melton (until recently worked in the area for a number of years)

 

[ballontree]

In vic there is no exclusive period for managing a tenancy only leasing so basically you find a new agent and sign an authority with them and they will arrange to take over the tenancy. once you have signed the authority it should only take 48 hours to have the file transferred to the new agency.

Shop around as there a plenty that you should avoid in Melton (until recently worked in the area for a number of years)

thanks, could u private message the ones that i should have gone with? or shoudn't?
thanks,

 

[ballontree]

never sign any standard contract
never sign a contract that isnt complete, to your satisfaction.

wow!! just noticed from your signature that you have properties in CA; and lots of them too!

was it handed down to you? or did u manage to achieve it by yourself? do you have your story here somewhere?

I need some story for motivation to stay in this game/business..........

 

[ballontree]

never sign any standard contract
never sign a contract that isnt complete, to your satisfaction.

one question about your signature, what does it mean?


Retired LOR 40CF+CG

 

[luckyone]

one question about your signature, what does it mean?


Retired LOR 40CF+CG

It means he's retired, Living Off Rent, 40 Cashflow Positive/Capital Growth properties.

 

[AlmostBob]

My ladylove and I began investment in 2005
Nothing was handed to us
sweat equity,
buy renovate revalue repeat
we have 2 eleven unit buildings, a five unit building and a bunch of single houses.
\things I have learned
REA are not your friend, until after the 5th commission
property managers,, dont
the rules, the residential tenancies act for the jurisdiction, no other opinion matters

things I have learned off somersoft
The landlord is responsible and liable for everything
reliable pms are far between, when you find one, keep them


Our journey is written down here somewhere

 

[redwing]

If nothing else my western sydney PM's are on the ball with any arrears, that and LL Insurance gives me a good SANF

 

[ballontree]

My ladylove and I began investment in 2005

Omg! That's less than ten years! And you have 40 properties.

Could I make these assumption?
- on high income and save a lot
- inheritance some where in the mid of your investment
- bought some where cheap first and it grew in price like thrice the price you paid for in 2 years?

There's got to be a catalyst somewhere; some secret sauce or formula

Like buying blue chips only?

 

[AlmostBob]

on low single income
not blue chiip
no inheritance
personal opinion,

• ONLY
  • buy cheap
  • reno
  • revalue
  • repeat
• the silliest thing, a resi rental that costs as much as the landlord's ppor
• cheap house rents for as much as expensive house has better ROI
• always buy the worst house in the best street
• copying anothers sig, the deal of a lifetime comes along every day
• the secret, those who think they can, and those who think they can't, are right.
• learn the rules, be able to refer to the RTA by paragraph and number
• write leases that use every clause of the RTA, the 'REI standard lease' is crap and protects the REA/PM not the landlord
• accept no pm bs (see above, pms here now use our lease forms)

best deal yet, buy house on 1 acre $20K ( I didnt want this one it was ugly, Kathryn talked me into it)
reno $1900 (1 door, furnace repair)
sell $90K signed in 30days (450%/month wish we can do it every month)

coz you cut the head high grass and they can see the babbling brook loaded with trout running through the yard​

we have been busiy this year, Kathryn didnt find a property to buy, so she'll want two next year.

 

[ballontree]

thanks!! impressive!! bte, for reno, did u guys DIY or call in the professionals?

I need to re-think what you have said and match up with what I currently have

 

[kathryn d]

thanks!! impressive!! bte, for reno, did u guys DIY or call in the professionals?

I need to re-think what you have said and match up with what I currently have

When possible, we did what we could.

We never put in 'high end' anything.
Our range hoods cost $46 each.
Our floor tiles cost $1.00 each
Stoves cost $299 each etc

We do as little as possible to get the maximum rent for the area.

 

[AlmostBob]

best reno yet

THIS

is 5 hours with glue & a sander, 1 hour & 1 gallon of epoxy
dont have exactly the same angle in the before shot

 

[ballontree]

updates: after sending the notice to vacate (2 weeks notice); at the end of the 2 weeks notice before applying for a vcat - tenants promptly paid up everything except 2 weeks.

PM said vcat will not issue eviction order because the tenant attempt to try to pay; so nothing was done. just wait til next week for tenant to pay 3 weeks.......

 

[dragonlady309]

Still apply with VCAT

Your PM should still lodge with VCAT and get a hearing date. PM can always ask for adjournment if money paid up to date or go to the hearing and have it recorded if they are late again, there will be consequences.

Make sure your PM lodges with VCAT - they are still 14 days in arrears.

 

[Munchkin]

updates: after sending the notice to vacate (2 weeks notice); at the end of the 2 weeks notice before applying for a vcat - tenants promptly paid up everything except 2 weeks.

PM said vcat will not issue eviction order because the tenant attempt to try to pay; so nothing was done. just wait til next week for tenant to pay 3 weeks.......

This drives me nuts. I had a tenant only in for a year and did this at least 6 times. Paid up right at the last minute (a couple of times the day before VCAT hearing). He was a nightmare to get rid of.