Thanks everyone for the responses. REALLY appreciate.

Yes I realise I cant discriminate but thats exactly what I would be doing if I didnt release to these people (if they chose to come back). i.e. I dont want to rent to them, they are filthy, they dont work AT ALL, everytime I have been there they are drunk (even in hte morning) and the place is a pigsty.

Re leases – the front house is on a month to month, the 6 month lease expired in Dec. The granny flat however still has 2 months to go on the lease. So my thoughts are…… settle with vacant possession , get a 10 week settlement – and add a clause in that any damage caused prior to settlement is the owners responsibility. I’ll then spend a week fixing it up (might take a skip to get rid of the empty beer bottles lying around!!) and re-rent. I guess i just then have to rely on other people applying to rent the place and hope that they dont reapply.

Thanks for everyone’s comments. I know the place has long term potential, coupled with the great return. Just got to sort out the tenant problem.

You’re right, Real estate agent was not too fussed on checkign th place out. On the 2nd inspection I made her enter the granny flat first, it was dark, there was a group in there getting totally drunk and stoned. AND it was the middle of the day!! Plus when I opened the kitchen cupboard I saw about 4 cockroaches running over the crockery! How do people live like this?

Thanks for the support!