Join Australia's most dynamic and respected property investment community

Anyone had a property abandoned?

Discussion in 'Property Management' started by JessicaP, 20th Jan, 2016.

  1. JessicaP

    JessicaP Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    82
    Location:
    Melbourne
    One of our rentals appears to have been abandoned. Tenants stopped paying rent from the 11th of November, PM has tried to contact them multiple times via phone, text, email, letters. Notice to evict was sent on the 23rd of Dec. Still no contact. I have a friend who lives in the area who says he hasn't seen anyone there (and he walks the dogs past at all times of the day) since early November.

    PM is dealing well with it all, VCAT hearing set for tomorrow. Just wondering if anyone has any experience with this and how long it took to actually get possession? PM is talking police warrant to access the property and then someone from consumer affairs (?) to value whatever is left in the property. Feels like it might be a while :(
     
  2. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    @Xenia posted about this recently
     
    legallyblonde and Xenia like this.
  3. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,347
    Location:
    4/136 The Parade Norwood, South Australia
    Lots of experience with exactly this situation :)

    It sounds daunting but just a process in the business of property investment.
    If you have good landlords insurance through a specialist company there should be zero (or close to it) losses on this as everything is recoverable.
    If tenant has absconded they would not turn up to hearing and you should get vacant possession within a week.
    Start advertising immediately and get quotes done for insurance claim asap.
     
    Perthguy likes this.
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,575
    Location:
    Sydney or NSW or Australia
    Yes - You have to go through all of the requisite motions including getting a judgement to claim bond, evict the tenant etc.
     
    Perthguy likes this.
  5. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,595
    Location:
    Adelaide, SA
    MattADL likes this.
  6. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    Yep; had a tenant do a runner; left loads of rubbish inside, broke another Unit's guttering on the way out (had a truck to take their gear away). Owed rent of course...bond covered some of it.

    When I lived in my first PPoR; the house behind me was rented;

    Dogs started barking day and night all of a sudden; I got fed up and went around to the front door; was greeted by the LL who had just arrived before me to find house vacated and trashed, full of dog poo and urine, food scraps - 2 dogs left behind with the back door open so thewy could roam in and out freely, but had run out of food and water days before I suspect (hence their barking).

    it was disgusting; all carpets had to be replaced and dogs almost didn't survive.
     
  7. JessicaP

    JessicaP Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    82
    Location:
    Melbourne
    Thanks Xenia, we already have several people lining up for the property so won't have to advertise etc. The PM is dealing with the insurance company etc which seems to be going smoothly - we have insurance with Commbank. The fact that they have skipped out on a fixed term lease goes in our favour.
    The PM just rang and told me they used their key to get in - definitely abandoned, minimal damage but there is food up the walls and dirty nappies all over the floor. The fridge is still there full of food and has been turned off :(
    Dirt we can deal with though.....does anyone know if the insurance company will cover a cleaner...;)
     
  8. JessicaP

    JessicaP Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    82
    Location:
    Melbourne
    Oh @Bayview! That is so awful, those poor dogs :(
    This place has been left in a pretty ordinary state considering the food and our 40+ temps recently. Not looking forward to cleaning it. I'm just happy there doesn't seem to be any major damage, we are a bit pushed for time with the other reno.
     
  9. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,347
    Location:
    4/136 The Parade Norwood, South Australia
    This is all common stuff Jessica - no one cleans properties before they abandon them.

    We get ready for cleaning and insurance claims and minor repairs when tenants fall into arrears repeatedly and can't catch up. The behaviour is predictable.

    We have a tenant right now who advised that they just divorced - been in property for 18 months - all good so far but I know that he alone cannot afford the $590 per week so it's a matter of time. They start off borrowing money, which only increases their debt later. It's predictable when you have been seeing it for over 11 years.

    what is not common is - tenants trashing properties and wrecking walls etc and tenants leaving expensive furniture that needs to be stored for a fee. There is theory and then there is real life which is handled differently.

    Yes - dumping of rubbish and cleaning is claimable.
    great that you have new tenant lined up.
    All this is just a processed that can be finalised in a week.
     
    Perthguy and JessicaP like this.
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,029
    Location:
    Sydney
    I've had it happen. If you own property it is bound to happen at some stage. No big deal. couple weeks with no rent.
     
    Xenia likes this.
  11. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,347
    Location:
    4/136 The Parade Norwood, South Australia
    which is recouped through a claim anyway.

    It used to shock me at the beginning and I would be devastated each time. After 11 years though, it just gets handled quickly and everyone moves on. No big deal I agree.
     
    EN710 likes this.
  12. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    1,329
    Location:
    melbourne

    i had something similar - in the western suburbs of victoria actually. went to vcat, got the eviction order and then took possession, the tenant abandoned the place before i could get a sheriff in to evict.
    When you go to VCAT make sure to claim for the bond as well.
    Once you got the order, just make a claim with insurance they should cover the rent after X number of weeks. Any damage can be claimable subject to policy. It's just part of life. Consumer affairs in VIC is basically useful unless it is a faulty product that can cause fires or something within those lines of a faulty car etc.
     
    Last edited: 22nd Jan, 2016
    datto likes this.
  13. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,394
    Location:
    Mt Druuiitt
    Fortunately, I can count on one hand the amount of times I have abandoned a property. I need two hands to count how often I have abandoned employment lol.

    Sorry, i know this serious but I just couldn't help myself.. It's a Friday on a four day long weekend!
     
    Gingin and SK Investments like this.
  14. HD_ACE

    HD_ACE Game-Changer Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    449
    Location:
    Perth
    Yeap been there. Just follow the process and get the cleaning and repairs done asap.
    My x-tenants are still paying me $10 a week through a debt recovery agency to cover the costs they left me.
     
  15. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    I had my tenant break lease,and we went to SACAT to recover outstanding rent,water and break lease fee,around the $460 area,not a biggie,but its a principle thing with me.It also cost me a $69 fee for the privilege to ask for my own money back.
    In the middle of the hearing the tenant pulls out a "paid invoice" of $250 for mould treatment in the bedroom.This was the 1st anyone had heard of it.The member awarded this payment to her based on her truth full nature, and i am a capitalist pig, the break lease fee was also not allowed as we should of known about the mould,apparently.Make up your own mind with the invoice Mobile disconnected,no ABN, icloud email,Invoice no 001,the invoice date was 2 weeks after the tenantgave notice.This is what we are up against, a 1 sided view through a government agency which has no intention of being fair.
     
    Last edited: 17th May, 2016
    Xenia likes this.
  16. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    Dodgy Word Invoice.
     

    Attached Files:

  17. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    414
    Location:
    Brisbane
    Has anyone had the tenant abandoned their property on your freehold and if so did you
    1 onsell the property
    2 negotiate with the bank that held the mortgage
    3 merge the leasehold title with the freehold (i am uncertain if this is possible )
     
  18. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,155
    Location:
    NSW
    Huh? You mean someone put a house on your land?
     
  19. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,106
    Location:
    Melbourne, Nationwide
    I've had one. Fortuantely not quite the same.

    PM got a text message that read, "Can't afford the rent, have moved out, keep the bond for the last month's rent".

    By the looks of it the couple had split up and she'd moved on. He stayed a few months but couldn't keep up the rent on his income. Left a bit of a mess behind.

    The biggest hassle was we had to go to VCAT to claim the bond (he didn't contest). I actually wasn't too worried about cleaning because the house needed a makeover anyway.
     
  20. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    414
    Location:
    Brisbane
    Yes that is correct
    They (the leaseholder/tenant) own the house.
    I own the land but like any tenant they can walk
    This is common in ACT (all of HK ,China UK etc)