When I saw your post I immediately thought of the movie "The Castle"
I would be quoting Daryl Kerrigan... "Tell him he's dreaming!"
Tenants... they just dont get it
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When I saw your post I immediately thought of the movie "The Castle"
I would be quoting Daryl Kerrigan... "Tell him he's dreaming!"
I have just got a reply back form the agent managing one of the IP's we have on the market, and they are suggesting 25% discounting.
Cheers,
The Y-man
Jeez, discount was never even brought up by my PM or tenants with the property I've got listed at the moment. Maybe I should consider myself lucky?
At first I was considering offering them $10pw off which is about 5%. I changed my mind though since the rents in the area are increasing rapidly, and as a result they're about $15pw under market now anyway since their lease was signed in December.
At first I was considering offering them $10pw off which is about 5%. I changed my mind though since the rents in the area are increasing rapidly, and as a result they're about $15pw under market now anyway since their lease was signed in December.
They are already about 30 a week under market value, there rent is 330.
Wylie
I would love to get rid of them...I am worried now that the market has dropped I may not get what I want to sell...in which case I will still have them.
Glenn they dont have a lease but it seems I cant get rid of them without a reason....
if I use renovating.. then I have to prove I have done something major , if I say I am moving back in then I cant relet it for 6 months. Selling is 60 days but you have to sell , if not you have get tribunal approval to relet ( if they were to complain which they will)
I have to wait now and give them 120 days no reason notice (if I dont sell) and they can still take me to the tribunial and get that stopped....they are nasty and I dont know how to deal with them ....they use the tribunial as a threat but when I DO investigate it always seems to be in their favor...
The best I can hope for is an offer I am happy with ..
I would love to get rid of them...I am worried now that the market has dropped I may not get what I want to sell...in which case I will still have them.
Glenn they dont have a lease but it seems I cant get rid of them without a reason....
if I use renovating.. then I have to prove I have done something major , if I say I am moving back in then I cant relet it for 6 months. Selling is 60 days but you have to sell , if not you have get tribunal approval to relet ( if they were to complain which they will)
I have to wait now and give them 120 days no reason notice (if I dont sell) and they can still take me to the tribunial and get that stopped....they are nasty and I dont know how to deal with them ....they use the tribunial as a threat but when I DO investigate it always seems to be in their favor...
The best I can hope for is an offer I am happy with ..
If I was renting I would expect discounted rent and/or a bonus on sale for loosing the privacy of my home while it is on the market.
Especially if they have kids keeping the house clean is hard. Could you say that if the house is well presented for an open home you will give them $50 etc. or pay for a cleaner before an open home.
I do agree though that they sound like difficult tenants. Not paying rent then going overseas is just not fair on you.
Especially if they have kids keeping the house clean is hard. Could you say that if the house is well presented for an open home you will give them $50 etc. or pay for a cleaner before an open home.
I do agree though that they sound like difficult tenants. Not paying rent then going overseas is just not fair on you.
Caz the trouble is that your expectation would be at odds with that of the owners. You also suggest a bonus for loss of privacy whilst 'my home' is on the market... these guys are tenants not owners! i justify rent being as cheap as it is because of these sorts of issues. Trouble is, renters seem to think that the poultry rent they pay is somehow representative of a fair return for the consumer durable they are consuming.
Obviously you didn't like the above advice. They are not paying & going on holiday. This would be the best & easiest way to remove them. AS SOON AS they are 14 days late, they get a notice to vacate, then off to tribunal you go.
You could easily do this too, another easy solution for your problem, but again you have ignored this advice. In fact I would probably be giving them notice to vacate for the late rent AS WELL AS THIS.
What a joke. This has come about because they think you are a softy. Toughen the heck up. Like Mark said in a previous post, take your skirt off & go put some pants on. Show them you mean business. Don't give in to them & don't be scared of the Tribunal. It is there to protect Landlords from over demanding tenants just as much as it is to protect Tenants from bad Landlords. Unless you ARE a bad Landlord, you have NOTHING to worry about.
To even allow it to get to $30 pw under market, shows that you need to toughen up. Owning Real Estate is a Business afterall & to be successful, you need to remember that. You couldn't lease a car & pay $30pw less. You also couln't lease a car & tell them that you want $150pw compensation if the car is going in for repairs either. What makes this any different.
Who told you this load of rot?? If they are asking for repairs to be done, it is only reasonable to say that you need to renovate. You have a track record that things are going wrong. If it does go to tribunal, they will see the evidence & you will win.
If you tell them you are going to move back in, who told you that you can't relet for 6 months? That is WRONG. Many people move into homes & their situation changes & they move back out.
If you give them 60 days for selling & it doesn't sell after 60 days you have the right to relet. If they are that petty that they are keeping tabs on you after they move out & take you to the tribunal, then so be it. The tribunal are NOT going to say that you can't relet a home that genuinely WAS for sale (you have the evidence to prove it, if it is already listed). They might get a bit on the funny side if you gave them notice for selling, but didn't enter into a sales contract, but you have done that already.
Something you need to remember is that YOU HAVE THE POWER, not them. At this point in time YOU are allowing them to have the power.
So, stop whinging & DO something about the situation. Give them notice & GET RID THEM.
If an agent tried that intimidation tatic with me then I would tell her
"Fine, lets go the hard way then. Issue your 24 hours notice please"
Do you have any idea the problems your tenant can cause to your prospective buyers if a buyer rocks up and wants to view but gets told they need to issue a 24 hour notice first? Cmon. Give them a 20% rent reduction for the hassle and get the peace of mind of a clean house and stress free viewing.
Am I missing something...unless the law is different in Vic...they do not have a lease...so up the rent to say about $450/week if they stay good (cash flow fixed), if they leave good (sell).
Look around your area you will find supporting evidence at your local RE office or the internet for comparable properties and reasons to up your rent.
If you really want them gone I am with skater on this...DO something about it. Insist the PM send a termination for unpaid rent delivered by hand on the 15th day. If they do not go to 14 days arrears and you have signed a sale contract serve the termination "for sale" notice asap and ride out the 60 days. If you are really hard up apply for termination due to hardship (requires tribunal hearing)
IMHO You are knocking thousands of $$$'s of the potential price of your IP by having under performing renters whether you are selling to another investor or to a home owner.
As skater put it "take control" and act NOW...don't be lead by the PM either.
First open house was OK, the tenants are now away on holidays (rent now up to date), so the other open houses should not be a problem....Just wait and see if there are any buyers....
Glenn, no they havent...I would like to as it is for sale but agent is reluctant to do so...( I am doing the wrong thing in not insisting). I daresay it cant be done while they are away either which buys them a few more weeks to stay where they are....
Glenn, no they havent...I would like to as it is for sale but agent is reluctant to do so...( I am doing the wrong thing in not insisting). I daresay it cant be done while they are away either which buys them a few more weeks to stay where they are....
The house on the market ....a friend went around to the open for inspection... the house was dirty ( always very tidy for inspections) clothes on the floor , carpets stained, beer bottles ont he sink. The agent went around for the next open house and the house smelt found the dog had been locked inside and had shat in the ensuite....
Spoke to the selling agent they said dont upset the tenant while they are paying and they are allowing reasonable access...and that I cant complain about their house keeping....the agents are looking after this and I am to leave it to them...
Do I just let the agent deal with it
Tell the agent I want the tenant out....
Spoke to the selling agent they said dont upset the tenant while they are paying and they are allowing reasonable access...and that I cant complain about their house keeping....the agents are looking after this and I am to leave it to them...
Do I just let the agent deal with it
Tell the agent I want the tenant out....
This is the very situation I suggested you avoid in my earlier post.
You either sell it vacant if you think the sitting tenants will lower the sale price or you motivate the sitting tenants to help the sale process.
You have chosen to keep the tenants but have done nothing to "bring them onto your team"
Your agent believes that you main goal is to have up-to-date rent as that is what he is focusing on while I would have thought a maximum sale price would be your current aim.
What will maximise your sale price? Put aside your issues with the tenants and focus on the outcome you want.
Ideas:
Take off market, evict tenants and place on market vacant
Send through cleaner prior to each opening
Offer lower rent in return for good presentation at opening (compensate in lump sum at end of sales period)
Swallow your pride - a lower sale price will dwarf any late rent issues - if you don't belive me ask the agent how much the current presentation is costing you. With a grotty presentation it will put off owner occupiers and investors alike (do they look like dream tenants??)
I was really surprised at what the agent said about the presentation...I thought her pride would have had her keeping the place up to scratch, as it was tidy at rent inspection
I did offer to pay to have the carpets cleaned and then when they moved they wouldnt have to but this was refused.
The plan now is to see what this week brings...take it off the market , evict, tidy up and then try again to see if ti will sell....if not get better tenants...
I did offer to pay to have the carpets cleaned and then when they moved they wouldnt have to but this was refused.
The plan now is to see what this week brings...take it off the market , evict, tidy up and then try again to see if ti will sell....if not get better tenants...
I went to an open house for sale and they had a dog sitting on 3 of the front steps with dogpoo all around them which you had to step over to get in - you know my first thoughts. Everyone will be really put off of this and it will sit on the market and if I want it I will pick it up for a song. These would be the same thoughts everyone had. It never sold.
