tenants problems (again)

From: Anton Madievski


Hi all, your advice will be appreciated.

I have just bought a townhouse on the Gold Coast. Right after the settlement, the resident managing agent told me that the property is occupied by the tenants of the previous owners who are months in arrears with rent, are not in position to pay rent and not willing to vacate the premises (rental contract long expired). The manager is suggesting going to court which sounds lengthy and expensive. Considering that there is no contract between the property occupiers and myself (and that there is no security bond to cover likely malicious damage to property in case of eviction and that I cannot insure the property because of the existing problems) I wonder if there is a better way to resolve the issue?

Regards,
Anton
 
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Reply: 1
From: Asy .


Anton,

Was the property purchased subject to the current tenancy?

If so, then the past rental arrears are not your problem, change managing agents, and get them to deal with this, and any monies paid by the tenants will come to you. The previous owner will have to chase them himself.

If the property was not bought subject to the tenancy, why did you settle without vacant possession?

Please give us some more info. Joanne will probably be the one to help you, as I am more sales than rentals.

asy


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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Reply: 1.1
From: Anton Madievski


Asy,

Thank you very much for your post. I can't find anything about tenancy in the contract (this is my first purchase in Queensland and I'm not that familiar with that form of contracts). I was led to believe that the old tenants left when their contract expired and that property was vacant, but do not have anything in writing.

The problem, as I see it, is not how to get rent from the tenants (according to the agent, they simply cannot afford it), but rather how to get rid off them and let new tenants in.

Regards,
Anton
 
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Reply: 1.1.1
From: Paul Zagoridis


The lesson is to always get vacant possession OR subject to current tenancy. Never "I thought it was vacant".

Anyway, you've settled now. If no one comes up with a better idea, pay them to move.

Tell them you'll give them a rental reference and pay their bond if they move out by Friday. If that fails offer cash equivalent to 4 weeks rent if they move out and leave the place clean.

Of course talk to your managing agent. HE has a problem too. Get him to commence eviction.

I'd probably pay them to move, if they can't afford the rent they can't afford to move. Is the place worth another $1,000 to you?

Paul
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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Reply: 1.1.1.1
From: Simon and Julie M


Thinking outside the square
Good on ya Paul!
I would do the same type of thing.
We all make mistakes and I believe the focus should now be on the solution.
Regards
Simon
 
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Reply: 1.1.1.1.1
From: Michael Croft


I paid some inherited tenants to move, cost $500. $200 cash up front and $300 cash in hand when I returned at 5pm that afternoon when the place was vacant (yes I got it in writing). Arrived at 5pm with locksmith and had locks changed, total cost $580 - a dam site cheaper than any other course of action in those circumstances.

Michael Croft
 
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Reply: 1.1.1.1.2
From: The Gow's


Hi Anton
I have a couple of I.P's on the Gold Coast, we use Hillsea property management for our IP's and they are great. they mainly deal with the northern end of the coast, Labrador, Runaway Bay and such. I have found them to be really helpful and very professional in there business. They may be able to help you fix your problem's. send me an email and i can put you on to a very helpful lady.

"Three essentials to happiness in life are something to do, something to love, and something to hope for."
Addison
 
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Reply: 1.1.1.1.2.1
From: Anton Madievski


Thank you very much, everyone.

One more question on the 'subject to current tenancy' issue: what does it actually mean and where in Queensland contract would that appear?

Kind Regards,
Anton
 
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Anonymous

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Reply: 1.1.1.1.2.1.1
From: Anonymous


Anton

Step 1 - call your lawyer and ask her about it. Then ask why they didn't, as a matter of routine ask you about the tenancy etc. BUT remember, they can't know unless you tell them.

Look on the front page of the contract schedule - the bit that has the agent's name, your name, seller's name etc...

There's a bit down the bottom there that should have been filled out with the tenant's details.

BUT even if it wasn't you take subject to the tenant's lease due to the Residential Tenancies Act...

arrears in rent pre settlement date are the seller's problem. make sure the tenants know they have to pay you and pay on time. if they don't do what Paul and Michael have suggested then change the locks.
 
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