The down side of residential letting

I've had a bad time recently with my tenants. Just wanted to let you know that it isn't all roses with property investing. Some people do try to take advantage.

Anyway, the story is that I had tenants who appeared to be caring for our 4 bed rental reasonably okay. They paid their rent , even though it was frequently late. The last inspection was reasonable but I suspect some damage was disguised.

Then the tenants stopped paying rent early in December and when they rang to request an extension of time to pay, I gave it. I should have breached them for non payment of rent right then as a precaution but I didn't.

Upshot was they did not pay rent, went off to Bali for a holiday, got another dog (thats 3 now) and then abandoned the house last week without giving notice. They refused to return our phone calls and we haven't been able to discuss the situation with them.

My husband and sons have spent three days cleaning and repairing. We had to take 2 trailer loads of abandoned goods to the tip and we are storing a shedful of their rubbish at our expense. Every item had to be photographed!! I had to apply for an "Indemnity Certificate" to allow me to remove this trash and protect me from being sued by them for dumping their abandoned gear. None of this stuff is worth anything, but I still have to "look after it".

We had to replace the bedroom door because it was kicked in , we repaired two other doors, replaced three light fittings and I'm scouring Perth trying to find a replacement panel for the glass sliding wardrobe doors. Sundry blinds are ruined. There are cigarette burn marks on the carpet. The bench tops in the kitchen are ruined. I can't get the tyre burn out marks off the brick paved driveway. This lovely home was only 6 months old when they took over the tenancy.

I have telephoned his father and her mother (details were on the original tenancy application) and left messages for the tenants to contact us but there has been no responses at all.

Now I have to apply to the Magistrates Court for the $1600 bond and then return to court a second time for an order to recover costs for the damages and unpaid rent. Once I get that I will put it in the hands of a collection agency (preferably one owned by bikies!!) and I hope to make them pay up.

Facebook has been helpful :)

This couple have individal facebook pages and they have talked about looking for a new place. They have commented about being "unlikely to get bond back"Now I can see they have a new rental, with a pool (according to a facebook status update). Thing is, until I get a court order, I can't add their names to the "black list" so the new landlord must have been told lies about where they have been living for the past year. Poor landlord is unaware.

So, to make myself feel better I have redirected all the letters in the mailbox back to the senders with a little blurb about the tenant "defaulting on lease agreement and abandoning the premises".

Anyone got any other suggestions about what I can do??
 
So, to make myself feel better I have redirected all the letters in the mailbox back to the senders with a little blurb about the tenant "defaulting on lease agreement and abandoning the premises".

Haha!! I like it - thats pretty clever :D
 
Now I have to apply to the Magistrates Court for the $1600 bond and then return to court a second time for an order to recover costs for the damages and unpaid rent. Once I get that I will put it in the hands of a collection agency (preferably one owned by bikies!!) and I hope to make them pay up.

I take it no landlord insurance?

The Y-man
 
I have been in a similar situation many years ago,
I did post it on here and then deleted as I believed it was too personal.
It was at Christmas as well with all the same story lines.

It was one of those events that made me sell off most of my property's approx 20 years ago.

Big mistake on my part then selling,:(

Don't let it be your mistake as well.;)
 
We had to take 2 trailer loads of abandoned goods to the tip and we are storing a shedful of their rubbish at our expense. Every item had to be photographed!! I had to apply for an "Indemnity Certificate" to allow me to remove this trash and protect me from being sued by them for dumping their abandoned gear. None of this stuff is worth anything, but I still have to "look after it".

I have just claimed my tenants belongings. Same situation with me. Tenant left alot of crap in my place after being evicted by police. I had to pay for the cleaners to gather it all up, and also pay to hold it in storage for 3 months. Apparently, this is the law. If the tenants wanted to claim thier gear back, they would have had to have paid for loss of rent and for trashing the place prior to getting gear.

Anyway, I went to the storage place to see what was there, as now I can claim the stuff. There is a plasma, air conditioners, barbie, computer, etc. You wonder why they just left it there. You think they would have taken it with them. The 42inch plasma is a good brand and works like a treat. I think after the three months of storing it, you are allowed to auction it off and reclaim some costs if value is > $1500. Resale value was decided to be under this, so all mine.

Anyone got any other suggestions about what I can do??

Make an insurance claim!! In order to do this, you need to get all notices sent to tenant for lateness in paying rent, tribunal notices, etc, etc.

Cheers,

F
 
Actually, this thread has made me realise something. We've had our fair share of bad tenants. What is interesting is that our apartments have never suffered as much as houses since:

1. no garden to overgrow accumulate junk
2. no space inside to accumulate too much junk
3. walls are usually solid (concrete or cement rendered double brick) - unable to be kicked or punched
4. limited number of doors/lights/blinds etc to damage

Cheers,

The Y-man
 
Wow fudge thats amazing that they left such expensive stuff!

The stuff left at my rental was only worth $50 or so. It is all trash really.

As I didn't have LL insurance I can't claim. LL insurance was on my to do list but never did get done.

Y Man I think you might have a point about apartments being better for rentals. I'm also seriously thinking old is better too. Old and shabby. :)
 
Wow fudge thats amazing that they left such expensive stuff!

The stuff left at my rental was only worth $50 or so. It is all trash really.

As I didn't have LL insurance I can't claim. LL insurance was on my to do list but never did get done.

Y Man I think you might have a point about apartments being better for rentals. I'm also seriously thinking old is better too. Old and shabby. :)

OK Tizzy,

Yeah, I was surprised that the gear was OK. They left cabinets, vacuum cleaners, surround sound speakers, mower, blower, filing cabinets, and a whole garage full of................yep wait for it..................Incontinence Pads.

Even though I pay good money on insurance for all my properties, I don't think I would be without it. It does add up to a bit, but I have to add this to the management fee, mortgage and rates, and make it all part of an IP calculation.

Cheers,

F
 
Anyone got any other suggestions about what I can do??

Hi Tizzy,

Sorry to hear you have had this situation occur.

I think you are doing all the correct things. I'd probably try and get their names added to the tenancy database. I like your little script you are writing on their mail! Very clever!

Did you self manage?

I'd probably get insurance before releasing. Also screen the next set of tenants as thoroughly as possible. If a pm is managing insist on reference checks.

All the best.

Regards Jason.
 
Hi Jason

I will put their names on the database once I have the court order. I tried but can't do it before that happens.

I did self manage and the checks I did included ringing his employer and the previous "landlord". I thought that was enough. I now suspect that the "land lord" was actually his mother. He'd been working for the same employer for 4 years and stopped working for him 3 months ago. I think things started going haywire when he lost that job.


I'd definately do land lord insurance if there is ever a next time. Though right now I'm thinking reno/and or develop /sell.
 
I'd definately do land lord insurance if there is ever a next time..

Keep in mind though - how many tenant years (i.e. no. of IP X years rented) did you go through without a problem? Think of the insurance premiums "saved" and whether or not the insurance would have been worth it.

Cheers,

The Y-man
 
I'd definately do land lord insurance if there is ever a next time. Though right now I'm thinking reno/and or develop /sell.

I guess it depends on your strategy. Do you think this is just a one off, or is the area prone to difficult tenants?

Would having a pm help? (It may, or may not).

Wanting to sell after this experience would be a natural emotion/thought. Maybe take a step back and evaluate all of your options. How does selling fit in with your plan?

We had a bad experience with a tenant in one of our IPs. It is in a lower socio-economic area. We wanted to sell it. Instead, our pm helped us do a reno and now we have good tenants there. The IP has gone up since as well and we are about to release this title from the bank!

There can be good outcomes - although it doesn't seem like it at the time.

Regards Jason.
 
Christmas is always a tough time with tenants. In the last 6 weeks we have been to the Tenancy Board about 6 times.

Frustrating..but that's part of the game.
We are still winning :)
 
OK Tizzy,
and a whole garage full of................yep wait for it..................Incontinence Pads.

F

oohh, these are worth a fortune... I hope you didn't throw them away. Seriously........you could sell on ebay for a really good amount if they were still sealed.
Pen
 
Anyway, the story is that I had tenants who appeared to be caring for our 4 bed rental reasonably okay. They paid their rent , even though it was frequently late. The last inspection was reasonable but I suspect some damage was disguised.


Sorry to hear about your troubles Tizzy. :(

I guess it just highlights the importance of landlord insurance - even if the tenants appear to be OK at first.


EM
 
oohh, these are worth a fortune... I hope you didn't throw them away. Seriously........you could sell on ebay for a really good amount if they were still sealed.
Pen

Yeah, they are still in there wrappers and are in boxes.

The other half is looking at selling them at her pharmacy:)

Cheers,

F
 
I know how you're feeling Tizzy. Sorry it's happened.

I'd insure it tomorrow, not matter what. Plans change, and incase you happen to re-rent it & forget again.......ouch!
 
Think of the insurance premiums "saved" and whether or not the insurance would have been worth it.

The only reason I have LL insurance is for the liability - not the damage or lost rent. I can handle a hole in the wall, or a couple of weeks rent, but being sued for $1m due to a tenant slipping over and breaking neck in the bathroom because I didn't warn then that tiles are slippery when wet is my issue.
 
The only reason I have LL insurance is for the liability - not the damage or lost rent. I can handle a hole in the wall, or a couple of weeks rent, but being sued for $1m due to a tenant slipping over and breaking neck in the bathroom because I didn't warn then that tiles are slippery when wet is my issue.

Valid point

We are getting more like the US everyday, and you know what type of stories come out of there.

Best to cover for public liablity and have the extra piece of mind with some building and contents cover.

F
 
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