Tenants just moved in sent us a breach notice!

O

Olive

Hi, need some real advice on this...

We finally gone through all the hassles upgrading our IP, double income tenants moved in on a Sat. For some odd reasons the power had been disconnected before they moved in and we were unaware of this.

Tenants couldn't connect power due to some problems around the gutter area. Tenants then decided to stay in motel, ate out etc over the weekend. We were only told on the Monday what had happened and electrician immediately went rectify the problem power back on tenants back in, that was the Monday night.

We offer the tenants 1 week rent free $280 as compensation.

Tenants not happy, requesting compensation of $460, this includes their food in the fridge (no receipts), their loss of wages x 2 and eating out etc etc. Now we received a breach notice from them.

We live in Sydney, IP in VIC Frankston, does anyone know if this would turn out nasty? Do we need to get our lawyer to stand by?

Our point of view is, if this happened once, it can happen again. We can't afford to compensate all of their little things down to a tub of yogurt that went off! It's an old house, screws may come off, tap could go loose... then another breach notice?

By the way, we have not signed the lease yet due to delay in mail.

Any advice? Many many thanks..
 
Tenants can live in Motel. Many others waiting.
As for old house, well if your buying an old house than that's to be expected.
As general rule 25% of rent should be allocated to expenses, but It could actually cost more.
 
I thought I was unique being breached by the tenants! Don't want to scare you, but we've just been through hell. http://www.somersoft.com/forums/showthread.php?t=57102

I wouldn't have let anyone in until the lease was signed.
Do you have a property manager?
Do you have a written property condition report, with photos?
Do you have Landlord's Insurance? You may be able to claim that $460 on insurance.
Loss of wages?
Is there faulty electrics?

Document EVERYTHING.

Contact the tenant to set the record straight & ensure each party knows where each other stands. Ensure they are happy and find out if there's anything they could be unhappy with. I'd be getting onto it immediately.
 
I didn't think you could assume you move into a house with power on. I rented out mine a few weeks ago and the power was off, they said it would take 3 days to connect and then didn't do it when they said they would (turns out they needed to get inside and neglected to say this - they DIDN'T need to get inside as the meter had been read on disconnection, they just needed to reconnect the power to the house from outside) so on the 4th day they were obliged to turn it on same day Or Else so the poor tenant got to hang around for a few hours with all their furniture and no power waiting for ETSA to turn up. And yes, they ate out while they were waiting - we all ended up having lunch in the same cafe down the road. Cost us about $12.

You don't get compensation from the power company for your food if the power is out for a day - you get $100 or so if it is out for an ungodly long time though - this trying to get compensation from your landlord is a novel idea. Normal people buy a few bags of ice for $5 each when the power is out and eat less 'volatile' food, like sandwiches ...

Have these people rented/moved house before? Do they know the vagaries of getting utilities connected BEFORE you move in? Sometimes there can be quite a delay just due to the utilities people, forget electrical faults like yours. Which of course they should have told you the instant they found out, there's an obligation to report faults ASAP, especially when they are as major as 'there's no power'. You just don't wait a few days to tell your landlord that there is no power, water etc, you stick your landlord with an out-of-hours callout fee for an emergency electrician :rolleyes:
 
from your blurb, it appears as if you were somehow responsible for connecting the power with the new tenancy? why? it's the tenant's responsibility to connect the utilities, not the landlords so why would you be responsible for their loss. claiming food etc means they are players. if it's possible get rid of them fast although if they're already in without a valid lease, they can call the tune for long time. best of luck...
 
graisme said:
from your blurb, it appears as if you were somehow responsible for connecting the power with the new tenancy? why? it's the tenant's responsibility to connect the utilities, not the landlords so why would you be responsible for their loss......
Click to expand...

From the OP's blurb it looks as though the electricity was unable to be connected due to a problem with the building that needing fixing by an electrician first.

The tenants could have called the emergency contact for the electricain listed on their lease if the PM was unavailable and the problem would have been resolved (notwithstanding the fact that you would have a call out bill from a sparkie).

The fact they the tenants did not follow protocol and simply took it upon themselves to book a motel probably means they do not have a legal leg to stand on.

What does your PM say? or are you self-managing? Did you have an emergency phone number for electrician / plumber etc on the lease?
 
Olive,

Please make sure you have read and understood what the rights of the tenants and landlord are in victoria:

http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Renting/$file/RentingComplete.pdf

With repairs, the tenant should have tried to contact the propoerty manager , or yourself, and failing this to contact an electrician directly.

Can you tell us how much the electrical repair was? Double that to allow for an emergency call out, and if that is around about $460, they have a case.

http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Renting/$file/repairsmaintanance.pdf


Also check your LL insurance for what is covered. You may be able to make a claim.

Cheers,

The Y-man
 
Thank you all,

We had building inspection done after signing the S32, there was power and previous tenants were still living in there during the inspection. Then settlement and painting upgrade etc so the house was pretty much left empty for about a month. Our agent done a final inspection for the condition report the day before tenants moved in (they moved in next day around 2pm Sat). Our agent said they could not check the electrical appliances during inspection due to no power.

We were first heard of the word 'compensation' from our agent. She was suggesting compensation of 1 week rent free and she said will collect receipts of their claims for us to consider.

Our agent informed us the following:
Tenants couldn't connect the power they said the electricity company refused to do so due to there is a piece of metal obstructing a fuse or cable and the technical guy could't tell whether it is safe or not to connect, he refused to do so unless a license electrician verified it is safe to connect. Our builder has always been helpful, we've just spent over $7k with him I supposed. He went over there immediately had a look at what caused the problem and he removed the piece of metal from/on the gutter and also sent electrician did a full safety check up everything 'passed'. Then tenants got the electricity guy back connected the power. All these happened on the Monday. Power back on Monday night. Builder to remove the piece of metal $50, safety report $136.

Both tenants did not go to work on Monday and they are attaching their pay slips for proof of salary so that we can pay them back. There doesn't seem to have receipts for the food but there is a receipt for their eating out it was $50.

These are our few options that we can think of:
1. pay full amount $460 of what they asked even without receipts? this sounds unreasonable to us since it was out of anyone's control to not have the power on. e.g. if there was a black out who should the tenants be claiming for their inconvenience and food going off?
2. say NO we are only offering one week rent free $280 which we already have offered them?
3. Send this matter to a lawyer to look after which may cost us more and have unreversable effect e.g. tenants taking revenge damaging the house doing doggy etc.

Somehow we would rather pay for legal advice then to have the tenants walk over us and think we may be an easy target for future claims.

PM did not advised us of any action, all they did was forward us the tenants claims.

What are your opinions of what we should do next?
 
Olive said:
Both tenants did not go to work on Monday and they are attaching their pay slips for proof of salary so that we can pay them back. There doesn't seem to have receipts for the food but there is a receipt for their eating out it was $50.
Click to expand...

Purely a bluff and nothing more.

From what you have posted, and that is all we can go on here, you have identified the problem and organised the neccessary work all in one day.

You have provided the neccessary duty of care that is required by you as a landlord and attended to all maintenance issues immediately. End of story.

Why both tenants did not go to work is beyond belief and quite frankyly any rational reasoning! From your post above it is evident that their input was not needed all day anyway.


Olive said:
What are your opinions of what we should do next?
Click to expand...

I would do nothing. I would kindly and calmly state to your PM that you have attended to all maintenance issues in a timely manner as required by you as a landlord.

I would also be suggesting to your PM that he/she needs to pick up their act on matters such as these. A proactive PM will nip little issues like this in the bud quick smart.

As far as i can see you have acted professionally and in a suitably timely manner.

And as far as worrying what damage the tenants may do, that is precisley what landlord insurance is for as well as a vigilant and professional PM.

Good luck

Rooster
 
Last edited:
Another vote for Rooster.

Tenants did not need to stay in a Motel. Would they stay in a Motel if they had a blackout? No! Tenants did not need to stay home from work. If they had a blackout would they stay home from work? No! As for the food in the fridge, well, if the power was out, why did they even put food in the fridge? Surely if you are moving in, you would at some stage during the process, turn on something that uses electricity? You would know that it does not work and NOT buy perishables.

Your PM should have nipped this in the bud so perhaps you need to be looking for a new PM.
 
thanks a lot for the replies, as on the Notice for Breach of Duty, tenant has filled in item 10 'I believe you have breached your duty as a landlord because - there was a fault at the mentioned property so power was not connected until 3 days after we moved in.'

1. Does anyone know if it is illegal if power isn't connected at the time when tenants moved in?

Then item 12 Compensation or compliance required:
'I require you to remedy the breach within 14 days after receiving this notice by 16/12/09 or pay me $460 compensation.

2. The problem was solved on the 7/12 does that mean this notice is no longer valid/been fulfilled?

3. There is no answer of a 'yes' or 'no' from the tenants on our 1 week rent free offer. Our agent suggested 1 week rent free and we thought of this is a good will offer, that was before knowing a breach notice was on its way. The offer is now pretty much left open at the moment. Does anyone agree we need to compensate them with rent free? Should we put a deadline of acceptance. Feels like the good will isn't necessary any more...
 
Did they take leave without pay from work, or just used a personal emergency day / sick day? Why did they both have to take the day off?
 
Does anyone know of a good PM in Frankston VIC?

thank you everyone, it looks like we do need new PM. Does anyone have any recommendation of a good PM who can deal with issues like ours?
ta
 
kathryn d said:
Pay them nothing. Start looking for new tenants.
This is the beginning of your troubles with them.
Click to expand...

Couldn't agree more:mad:

Obviously these tenants have read the manual and are acting accordingly.

Little do they realize that they will be moving at the end of the lease;):D giving you a little satisfaction.

I have never received a breach but from what you indicate it seems to imply the you have reacted to the stimulus and the breach have been dealt with so no 'or $460 payable'.

Is the following the form you were sent?

http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Forms_Residential_Tenancy/$file/BreachLandlordRT.pdf

Reading this form you may be offering the weeks free rent to early.

Cheers
 
Pay nothing.

You have complied with the breach notice, which was to rectify within a certain time frame OR pay $460.

I would be visiting the PM, phone for an appointment, and ask for an explanation as to exactly WHY the PM feels a rent free period should be given. Sadly, PMs often take the easy way out. Whinging tenant? Ask the landlord to give them what they want. Problem solved.

I have found that PMs have to be made aware that you know your rights and won't be manipulated into taking the easy way out.
Marg
 
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