QLD Advice On Ex Tenants Damage Cost Recovery - QLD

Hi All,

Some ex tenants have caused me about 4k worth of damage. Now while I blame my current PM for being completely incompetant I need advice on how to move forward. I have new tenants in the property now.

The ex-tenants are split between 3 groups now due to a relationship breakdown. My PM has negotiated $250 a fortnight as a deal which is still going to take over 6 months to pay my costs back. However, the ex-tenants were terrible at paying rent, so my thoughts are they are using this to time and will not bother to pay back rent, and I will have to end up at QCAT anyway.

It honestly just feels like excuses after excuses from my PM, whom I would ideally like to dump, and destroy their reputation in my area on the way out with the amount of stress and money they have caused me for their lies and incompetence.

However, how would that work with my ex tenants and this agreement my current PM has drawn up? Would a new PM be able to get all the ex-tenatns details and follow up on any agreement put in place and if that goes pear shape represent me at QCAT?

Thank you for your advice.

 

a PM is your agent and any agreement they have with the tenants is between you and the tenants not the agent. So you could appoint a new agent - but how keen would a new agent be to deal with an issue like this?

 

What did your insurance company say..

 

Sell the debt to a factoring agency, get paid (less their cut) and let the debt collector take it.

 

I am sorry to say but no new PM would want to have anything to do with it and if anyone says to you they'd be happy to, something is not right with them.

So given how much you dislike your current PM, I think you best way forward is to find a new one that you will trust, then do what @Scott No Mates suggested and find a debt collector. I know for a fact that - for a not-to-be-underestimated chunk of your 4K - they will chase your ex tenants and chase them and chase them until every cent has been repaid.

They are relentless and it is not going to be pretty for your ex-tenants... so take some pleasure from knowing that. Best of luck.

 

Are you aware if I have to go to qcat for a binding order before getting debt recovery people involved?

 

I'll message you privately

 

My tenants have left me out of pocket by about $5k after trashing the place and disappearing. Fortunately my insurance company paid out to the tune of $14,000 and they are chasing the tenants to recover their costs. My property manager says I should just file a claim with QCAT. Having never done this before can someone let me know the chances of success. Thanks.

 

By my calculations you've profited from this scenario by $9k and you still want more somehow?

 

No chance if the insurance company has paid you.

 

Hi Pleasure Paulie,

Form 16 to RTA, seek "Notice of UnRemedied Dispute" (don't bother with the actual conciliation) so you can make a non-urgent QCAT application for amount exceeding the bond, you get your QCAT hearing, hopefully come out successful with an Order requiring them to pay you money, you then call up your good friends at Barclay MIS (debt collectors) and they do the rest for a fee. Also, when you get the Order you can list them on TICA (extra incentive for the Tenants to repay the money owing).

At this late stage in the game, it is unlikely the Tenants would make right so I'd personally do the above route and use Barclays or similar. If the Tenants do voluntarily cough it up that's a bonus. Did you get any relief through your landlords insurance policy, or is this what's owing after the claim?

[edit:] just noticed the date on this post - silly me, how did you get on with this Pleasure Paulie?


Hi NedKelly, same as above

 

Just for my continued learning, why do you say that Terry?

Where my question comes from is my understanding (and I may be wrong), is that an insurance payout doesn't remove the obligation of the Tenant to pay money owing - it's not a case of the insurer takes on the debt, it's purely an arrangement between the policy holder and the insurer, and an applicable 'event' happened that triggered the pay out (the tenant is not contractually dragged into any of this), however in the LL insurers PDS there's usually a requirement that if the Tenant does repay the policy holder the policy holder has an obligation to inform and/or repay the insurer etc. - and I've often quizzed TSI for example a few different times seeking clarification on this as I have actually gotten Tenants to pay back money owing, they've said in most cases once they pay out they close the book and essentially 'no one is chasing the money', so I've let my Owners know this, whether they choose to inform their insurer if they've been repaid and make that payment is totally up to them...

 

NO! I didn't make $9K profit. The payout from the insurance company only covered loss of rent while I went to court evicting them and the damage they did which included a carpet that was covered in oil where it looks like they changed the oil from a motor cycle and an air conditioner that had bent fins where they had taken the cover off and ruined it. It didn't cover the clean up which is supposed to be covered by the bond. I had to get two skips in to clear up the trash they left behind and the insurance excess was $1000. So NO I didn't make a profit.

 

Insurance doesn't cover everything. The insurance company assume the bond will cover the cleaning but in my case it didn't due to the large amount of trash and cleaning that was needed. They also don't cover unpaid water charges that the tenant had agreed to pay in the lease.

 

If the insurance company has already paid the landlord they will be the ones trying to recover this from the tenant. The landlord won't be owed anything by the tenant.

There is also the contractual relationship between the landlord and insurer where they sign over the right of the insurer to sue the tenant under the name of the landlord. It would be like assigning your right to sue.

But I am no specialist in insurance law or litigation so this might be wrong.

 

In that case you have not been reimbursed for the same thing you are suing for, so you should have a chance to sue.
but whether they have any assets to pay you with is another question.

 

Well your original post is confusing. What is your total losses caused by the tenant then? And how much was covered by insurance?

Because your original post said you were minus $5k, but plus $14k.

 

Total Loss $19K
Insurance payout $15K less $1k excess = $14K
$19K-$14K = $5K

 

Insurance doesnt seek to fully compensate losses. It only pays for defined events. The gains and the losses are both yours as a property owner. eg : After the repairs by the insurer the place may even be in a better state with fresh paint etc. And eligible for improved Div 43. I also assume you claimed a deduction for the losses and outgoings as a repair and for water ? And now you also want to recover further funds (which would be assessable). A court or tribunal cant make good all losses. The winner in any court action usually gets some and not all of their apparent loss. And incurs legals and a lot of unrewarded time and energy.

Do they have financial difficulties now ? And do they have any assets ? Little Miss Centrelink may be protected.

 

ive unfortuantely, become a bit of an expert with insurance claims,

my recommendation, exhaust the bond towards stuff thats not covered under insurance eg utilities, cleaning etc.
push your agent to include everything, even if theyve damaged a 40year old oven, the worst they can say is no,
go for the cash settlement if possible, get the agent to push towards that, as you will always be able to DIY or hire tradies to get the job done cheaper,

dont wait to move for ex tenants to make payment plans or promises, they wont more than 50% of the time,

make sure the agent puts them on TICA etc

With insurance claims, you win some, you lose some,