All Topics / Help Needed! / How would you handle this – x tenant turned a/h and has now bougt across the road – spread rumors ect !

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  • Profile photo of MisterMister
    Member
    @mister
    Join Date: 2007
    Post Count: 112

    Hi people.

    Been awhile unfortunately , just no time lately.

    I have an ugly situation that I’m not sure what to do with , how would you handle it ?

    I let out one of my places that’s in a country town . I was very good to the tenants , supplied this and that , a mths free rent and all . This couple I later found out had been squatting , had their baby taken of them , cops after them and all sorts of things but they’ve somehow came out of this smelling like roses and were offered the place across the road to buy through first home grant, and now they have.
    They trashed my place and left it looking like an aboriginal camp , didn’t pay a cent and then took off.
    I’m an hr and 1/2 away and had no idea until rents didn’t turn up . It’s a small town , they’ve spread rumors that I did this, did that and ripped them off , sucked their way into the locals, shop people , neighbours and somehow hooked this place across the road and got the owner to do it on vendor terms through sympathy seems as I was so terrible to them , and now they live there , over looking my place , it’s a nightmare.
    Yet apparently I can’t really touch them and I’m wasting my time anyway as they’re broke, don’t work and owe 1000’s anyway , the cops have tried to nail them for yrs but they keep slipping through loop holes .

    I have more work to do on the place and I was then intending to sell it but now with locals eyeballing me b/c I’m apparently some scumbag investor that’s tried to rip this lovely young couple off , I do most of my own work and so I’m there infront of them all and these a/h’s over seeing it all from their window.
    I know no one in the town as I’ve only been coming and going accasionally when time, over a couple of years so there’s no one in my court – AND , now I’m the bad guy.

    I’d expect this couple and everyone else to badmouth and sabotage any attempt for me to sell if they had the chance , or see a sign on the place or get near the agent.
    I haven’t done a thing , I actually tried to help these people, yet I get this . Locals have stopped nodding hello when I turn up , the few I’ve spoken to have been polite but off quickly – never a good sign in country people I’d say.

    The whole thing is making me feel sick , I’m not sure how to handle it from here or how to get my place sold.

    I dunno – what would you do ?

    Cheers

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi matie

    If they have no money there is no point billing them for the damages – and it does not sound like they are the kind of people that would pay up anyway.

    Did you have landlord insurance with your home insurer?  If so, you'd be able to get some money back for lost rent, and some of the damage.  Other than that, you'll have to pay for the repairs yourself and write the whole affair off as a loss.  You would then get some of the lost money back as a tax refund at the end of the financial year.  I believe that losses can be carried forward – some of the other contributors might be able to comment on this.  If this is so, while the damages will hurt you this year, you ought to get a bit back in the next year or two on your tax return.

    My heart really goes out to you.  The trickiest part is handling your local community.  Time will show them the true situation.  If these people are indeed accustomed to living like pigs, they will surely live like pigs in the house they've bought, and the neighbours won't take long to come to dislike them.  It is then that it might cross their minds that maybe you were not the bad guy.  At the end of the day, if you do not live in this town, then while it sounds awful, it is probably no big disaster if you haven't got friends there.  The difficult part is simply whether you will have problems selling the place.  I guess in that regard, a couple of options might be to use an agent out of town, and ask that they do not put a sign at the front of the house, but instead use internet advertising and so on.  That way it is less likely the townfolk will be aware the place is up for sale and therefore cause grief for you.  I have heard of people selling property on eBay as well!  Not sure if it is a good idea – I'm just aware that it goes on.

    I'd strongly advise landlord insurance, and hiring a property manager to deal with your tenants in the future.  It ends up costing less than trying to deal with things yourself.  It also shields you from having to be up close and personal, seeing the disrespectful things that tenants do to your house.  It makes the whole transaction mere numbers on paper, which is probably the best way of dealing with it.  People probably won't treat your house as you would like them to, so it's best to be a bit removed from the situation.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    By the way, if you find these people to be threatening, it might be useful to take out an intervention order to keep them a certain distance away from you and your property.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of MisterMister
    Member
    @mister
    Join Date: 2007
    Post Count: 112
    JacM wrote:
    By the way, if you find these people to be threatening, it might be useful to take out an intervention order to keep them a certain distance away from you and your property.

    Thanks for the kind words and advice JacM.
    Thanksfully no it’s not really a personal threatening situation that’s bothering me , atleast thats something. Although when I first found out I certainly felt like paying them a visit . No way I’d win though I knew that , hu , they’d probably be hoping so that they could land me in court and take me for the lot.
    I see now how they work , running around pleading hard done buy until some sucker just can’t resist offering them something else for nothing, exactly what they did with me.

    Thanks for the suggestions , good thinking and selling ideas , spose I’ll have to do something like that if suspicions are right . Thankfully damage was more mess and rubbish than anything so it’s all cleaned up now but what a sight . I normally take pride in keeping the place looking as good as it can, lost rent to of course .

    Cheers

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
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    ok mate.  Touch back in with us if you need more ideas or a place to vent ;-)

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of ducksterduckster
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    @duckster
    Join Date: 2004
    Post Count: 1,674

    Mister, My parents own an investment house in a country town that has been trashed. I am going there in January to help them repair the inside of the house. It is disheartening. You are better to increase the rent each year than be soft as that is how I got left with a house full of rubbish when one of my Tenants did a runner and the insurance doesn't cover all the costs.
    Really feel for your situation and hope it doesn't turn you off as not every tenant is like that.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Can't stress enough the importance of the right insurance. 

    http://www.aami.com.au/home-insurance/landlord-insurance.aspx

    I have landlord insurance with the optional extra of tenant protection insurance.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    You could take them to the residential tenancy tribunal for the damages they have done. You can get a court order that they pay you money. You can then get further orders to garnish wages, bank accounts or seize property. You don't have to do it straight away but have up to 12 years to enforce the order. I have one on a tenant and have been waiting 5 years now – but I can't really be bothered anymore.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of MisterMister
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    @mister
    Join Date: 2007
    Post Count: 112

    Thanks guys , it’s helped spirits on the situation.

    Fronting up being the bad guy with all the eyeballing won’t be fun in the new year , what a start but , we can only hope true colours do get revealed sooner rather than later I guess. Mind you , they would have had a couple of payments due by then so it is a possibility as that’s when it hit the fan at my place so here’s hoping.

    Tell you what , I was over there the other day , looked across and almost couldn’t resist a visit , the things you see when you haven’t got a gun eh .

    Cheers

    Profile photo of fishmeetfishmeet
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    @fishmeet
    Join Date: 2009
    Post Count: 20

    Mister,
    I sympathise with your situation. I have been through it twice.

    The first time I didnt use a leasing agent. I collected the rent myself and did a lot of work and believed the hard luck stories. Arrived one day to find the house trashed and windows broken. I was never able to reclaim costs.
    The second time, different house, I used a leasing agent. I went for a house inspection after 1 year and found the place in a real mess. This time the agent went to tribuneral and regained some costs for damage. 

    I never recovered all my money but used this as a learning experience. I now have landlords insurance, keep in regular contact with the leasing agent and conduct regular inspections. It doesn't guarantee a problem free tenancy but helps control things before they get out of hand.

    Profile photo of ducksterduckster
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    @duckster
    Join Date: 2004
    Post Count: 1,674

    My parents have a strange situation the original real estate agent didn't collect bond and the real estate agents that took over the original real estate business didn't check if their was a bond against each rental property.
    So now that the tenants done damage and a runner my parents have no bond money.
    I reckon they should claim against the real estate agents as they caused this situation.
    What insurance companies are you using for landlords insurance as mine has a excess of $500 which I am not happy about that they introduced after I had been a customer for 15 years.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    I use AAMI, though they have a similar excess.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Re insurance, have a read of this; http://www.somersoft.com/forums/showthread.php?t=6314

    I would also say be very careful regarding the manner in which floor coverings and damage to walls is covered.  Damage to floor coverings can be sneakily excluded by the insurer as it supposedly falls under "normal wear and tear".

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    duckster wrote:
    My parents have a strange situation the original real estate agent didn't collect bond and the real estate agents that took over the original real estate business didn't check if their was a bond against each rental property.
    So now that the tenants done damage and a runner my parents have no bond money.
    I reckon they should claim against the real estate agents as they caused this situation.
    What insurance companies are you using for landlords insurance as mine has a excess of $500 which I am not happy about that they introduced after I had been a customer for 15 years.

    Yes Dickster, claim against them – that is what you are paying them to do, to look after your interests.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Hi Mister
    Don't dwell on it and let them get you down, they just don't care.
    Offer very attractive terms for the local Agent(s) to sell it and let them look after the sale, and move on, otherwise it will sour your efforts and motivation.
    The scum will show through in the next house for what they are for the whole town to see, without your telling anyone, and you don't want scum after you for slander on their "good name".

    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    selling motels in NSW

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    Hey mister,

    I got a couple of ideas for your situation

    a weeks or 2 free rent to get a new tenant in,

    try going into the local pub shout a round of drinks and tell your story so you can clear the air with the locals in the town and win them over to your side..

    all the best

    Profile photo of MisterMister
    Member
    @mister
    Join Date: 2007
    Post Count: 112

    Thanks guys , there’s some good tips here , I’ll probably need the lot .
    Allot of us know the feeling , Jesus I don’t know we work our a?s’s of to get ahead , go out on limbs and have the guts to have a go yet these scum think it all comes easy and we deserve to be ripped off , run about bleeding the system for all it’s worth , bloody sickening really.

    Anyrate , onward and upward I guess and in the meantime, colors may turn if I’m lucky . I’ll be giving my places and efforts the tenants it all deserves in the future let me say , and taking your insurance advice from ‘now’ on , no ifs or buts.

    Ps , Hi Ten Burner. Thanks mate but I think that would be interrupted as brown-nosing and trying to explain yourself in country eyes , they ain’t getting that opp’ of me . But thanks all the same and I appreciate the sentiment.

    Happy new year one and all
    Cheers

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Mister

    You might also consider employing a property manager in the future – it'll cost you all in all about 12% of your rental return.  They'd handle rent collection, inspections, chasing tenants for unpaid rent, submitting relevant eviction notices where necessary etc.  That sort of thing.  Saves you from finding yourself in a position of dealing face to face with tenants and having to be the bad guy asking for the cash and feeling mean.  That said, you'd still need to keep an eye on your place too.  Not all property managers are awesome.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    thats another reason why I stick with capital cities you dont have the petty problems like the whole town turning on you ect

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