What would you do with this tenant?

[wylie]

I have to ask "Has the LOA deserted you in this instance?"

Sorry about being so cheeky, but you have talked about it a lot, and it seems to have deserted you right now. If things work out in your favour, will you think it is the LOA working or the hard word you have done yourself to rectify this issue?

Wylie

 

[sailor]

I have to ask "Has the LOA deserted you in this instance?"

Sorry about being so cheeky, but you have talked about it a lot, and it seems to have deserted you right now. If things work out in your favour, will you think it is the LOA working or the hard word you have done yourself to rectify this issue?

Wylie

I don't think it has deserted me Wylie...more like I deserted it! I got quite concerned about the contract, tended to forget a bit about LoA.

 

[sailor]

I spoke to the property-lawyer-guru last night. He explained that my contract with the vendor simply states that a lease expires on a certain date, and makes no provision for a periodic tenancy thereafter. Note to self: Get it right next time...don't leave anything to chance. Sailor do your homework.
He also said that the lease between the current owner and the tenant is legal, and as I am not a party to that lease, it has nothing to do with me. Note to self: See above.
He will get me a copy of the current lease.

So...to the figures...always useful when making a decision:
1. I've been offered this property at 20% below market rate.
2. The lease in place (for the next 12 months) has rent at 80% of current median rents.

Therefore it's a good deal CG-wise...just the CF will not be great for the next 12 months and I'll be -vely instead of +vely geared. The tenant can leave at the end of the lease. I'll do a cosmetic reno and up the rent for the next tenant.

I will get a good PM to ensure:
1. The motor cycles are moved off the marble floors, and
2. The garden is kept in top shape.

Bernly, I know you have a great PM in this suburb...would you mind emailing me her email addy please.

 

[redwing]

To my surprise...the tenant has 2 (not one) motor cycles sitting in the 2nd bedroom on pink/grey marble flooring!

The garden has overgrown onto the patio (by heaps), and I know the tenant is not a gardener and I intend having a gardener come in and reno the garden, and include additional gardening maintenance in the rent.

Apart from gross untidiness, the place was filthy, but with the mandatory ginormous plasma telly!

. I think the PM was very very surprised at seeing the motor cycle...she did a double take! I don't think she was very impressed with the untidiness and filth of the rest of the unit. Although she did try to make the excuse that the tenent was away.

Hi Sailor,

Just going back to these posts, it just appears to me that the tenant really was "away",hence the gardens have overgrown (beyond the normal minimal maintenance this person may have done anyway....single guy) and the guy has stored the bikes inside the house so they wont get stolen whilst he's away

If you take ownership and with current agreement in place, how soon can you legally increase the rent (with a garden maintenance clause as well if you are going to hire someone to do the garden maintenance)?

A new PM sounds like a good option and they will probably do the majority of the legwork for you to acquire your IP on thier rental roll


All the best

 

[sailor]

Hi Sailor,

Just going back to these posts, it just appears to me that the tenant really was "away",hence the gardens have overgrown (beyond the normal minimal maintenance this person may have done anyway....single guy) and the guy has stored the bikes inside the house so they wont get stolen whilst he's away

If you take ownership and with current agreement in place, how soon can you legally increase the rent (with a garden maintenance clause as well if you are going to hire someone to do the garden maintenance)?

A new PM sounds like a good option and they will probably do the majority of the legwork for you to acquire your IP on thier rental roll


All the best

I'm currently living in the unit above this tenant, and yes he was genuinely away on hols for 2 weeks. But in the few years he's been there, he's done the garden ONCE! From my balcony (above) I can see the garden is full of weeds and completely grown over the pavers. You can't even see the pavers any more.

I've never seen his motor cycles outside, unless he's been riding on one. There are scratch marks on the concrete path outside his 2nd bedroom, from the bike stands.

I'm aware I can't increase his rent whilst he's on this 12-month lease. But he is required to keep the place in a reasonable condition, and that's what I'll use the PM for. And I intend to put in a gardener and include this cost in future leases...12 months from now.

 

[kingchevy]

What sort of motorcycle's are they? (give me a good idea of the person he is)

 

[hobo-jo]

What sort of motorcycle's are they? (give me a good idea of the person he is)

That's not going to give anyone a good idea of what the tenant is like. I suppose if she said Harley Davidson you are going to immediately think, big beard, large guy with bad friends/network?

I own a Suzuki SV650S, what type of guy am I?

 

[sailor]

What sort of motorcycle's are they? (give me a good idea of the person he is)

1 x off road
1 x on road

Neither are Harley's or Ducatti's.
Mid to later 40's, beard, drinks lots of beer in front of the plasma, and eats at the footy club across the road most nights. Has loud drinking friends around about once a month. V old run down car. Works for the local "skip" mob. Very polite, if not a little rough around the edges. Definitely not house proud. Get's the units a "skip" for free every Xmas to dump our larger rubbish. Very obliging if the ladies in the units need help with lifting something heavy.

 

[sailor]

That's not going to give anyone a good idea of what the tenant is like. I suppose if she said Harley Davidson you are going to immediately think, big beard, large guy with bad friends/network?

I own a Suzuki SV650S, what type of guy am I?

A bank officer?

 

[wylie]

He sounds like he might be a pretty nice guy under the rough edges. Anyone who helps ladies lift heavy things is OK in my book.

If I was in this situation, I would tell him that at the end of his lease I will be doing major renovation to his unit so will not be renewing the lease and he needs to find somewhere else to live. I would say to him that if he found something sooner, I would not penalise him in any way for breaking his lease. This tactic has worked for us in the past and avoids confrontation or them thinking you just want them out because you don't like them or their "type". It allows them to leave at their discretion without losing any dignity or feel they are being pushed.

Wylie

 

[sailor]

He sounds like he might be a pretty nice guy under the rough edges. Anyone who helps ladies lift heavy things is OK in my book.

If I was in this situation, I would tell him that at the end of his lease I will be doing major renovation to his unit so will not be renewing the lease and he needs to find somewhere else to live. I would say to him that if he found something sooner, I would not penalise him in any way for breaking his lease. This tactic has worked for us in the past and avoids confrontation or them thinking you just want them out because you don't like them or their "type". It allows them to leave at their discretion without losing any dignity or feel they are being pushed.

Wylie

Wylie...you are a gem...yes, this is what I will do. I don't want to offend him. I'll let him know as soon as settlement is completed.

 

[simonjulie]

HI Sailor
Sounds like you have turned your boat around and are starting to go with the flow. I would do what Wylie suggested.There i8s always a way to when we just allow ourself to find it.
Cheers
Simon

 

[Les]

G'day Wylie,

I would say to him that if he found something sooner, I would not penalise him in any way for breaking his lease.

A very good point made there, Wylie. And far cheaper than a $ incentive to leave. Well done,

Regards,

 

[Les]

G'day Sailor,

Wylie...you are a gem...yes, this is what I will do. I don't want to offend him. I'll let him know as soon as settlement is completed.

You might want to choose to let the PM tell him this. Depending on whether you want to be personally involved, or not.

Regards,

 

[sailor]

Will do...thanks Les. I'll let the PM handle it. Good advice.

 

[kingchevy]

That's not going to give anyone a good idea of what the tenant is like. I suppose if she said Harley Davidson you are going to immediately think, big beard, large guy with bad friends/network?

I own a Suzuki SV650S, what type of guy am I?

no actually depending on the year of harley could be a bloke interested in bikes and if he did have them in the lounge room depending on what sort of bike they are and the shock factor of the been there you might find if one was a 60-70's norton thats its probably cleaner and more sanitised then you're own kitchen.

but I understand bike's don't belong on marble floor but does this bloke have a garage and maybe it just was while he was away they were stored there?

 

[kingchevy]

Will do...thanks Les. I'll let the PM handle it. Good advice.

I had the feeling by reading you're early post you were more annoyed with the fact of the lease was signed for another 12 months stuffing up all you're plans. more so than the poor guy with bikes in you're bedroom.

 

[sailor]

I had the feeling by reading you're early post you were more annoyed with the fact of the lease was signed for another 12 months stuffing up all you're plans. more so than the poor guy with bikes in you're bedroom.

Got that right! My spreadsheet had taken the additional rental income into the loan repayment calculations. I've redone my spreadsheet (it wasn't happy mind you), but it will cope...now without a regular fix of champers.

...and I'm not happy with the greasy bikes on the marble flooring. They are old bikes...not collectors' items...and they looked greasy. I just hope they haven't scratched the surface.

 

[Macca]

Hi Sailor,

An inspection of the property by your newly appointed PM will be in order, methinks.

Get that bike out of here, fix that floor, we will be back in two weeks to check that it is done ................

And you can discreetly supervise from on high

 

[kathryn d]

This guy doesn't sound too bad.
Could you give him something to put under his bike? Maybe a used carpet the size of the room?
How about just increasing his rent to market when his lease expires and include the costs of the gardener as well.

If he pays on time and is generally an OK guy, it most certainly could be worse.

He probably considers this place his home.It must be extremely nerve wracking to be a tenant when the property is sold.

Good luck Sailor.