QLD Backflip on tenant approval due to criminal history

Discussion in 'Property Management' started by Darran, 30th Jul, 2021.

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  1. Darran

    Darran New Member

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    Yesterday we approved a tenant for a property we rented (by responding to the property manager's email). Overnight however, we've had some second thoughts. Without going into too much detail, we've become aware of significant criminal history in relation to both use and distribution of methamphetamine. One applicant was a lawyer by profession but barred from practicing law due to criminal activity.

    Assuming the prospective tenants have been notified that they were approved, what would be the ramifications of us backflipping at this stage? Are there any legal implications with us changing our mind?
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Have you advised your pm?
     
  3. wylie

    wylie Moderator Staff Member

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    I'm curious to know how you found this history out when the PM didn't. And yes, I'd ask the PM if they've signed up. Does verbal approval lock you in? I'd assume unless they've signed a lease, you aren't locked in.

    @thatbum might know, but perhaps Queensland law is different to WA?
     
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  4. skater

    skater Well-Known Member

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    It was only yesterday. Get on the phone straight away & let the PM know you've changed your mind.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Cyber trawling :rolleyes:

    The applicant's eyes were too close together?
     
  6. MB18

    MB18 Well-Known Member

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    If they haven't paid a bond or signed a leases I wouldnt have thought there to be any issue.

    Frustratingly every state seems to be different but from what I've observed its generally a case of tenant pays a deposit to have the listing removed, they pay a bond prior to signing a lease afterwhich the landlord can't back out, the lease itself isn't usually signed until the day the keys are collected.

    How much of that is correct or not I wouldn't know, but thats how the process has worked for the last few places I've rented.

    Admittedly neither I nor the landlord have backed out once the 'congrats the property is yours' phone call has been made so I've never had reason to look into the process further.
     
  7. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    If no lease has been (even partially) signed, and no bond lodged, it may be suggested someone in your position might simply instruct their Agent to let the applicants know the approval has been withdrawn, no reasons were provided if they ask, and move on to the next applicant.
     
    Last edited: 30th Jul, 2021
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  8. skater

    skater Well-Known Member

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    Yep, this. Until you've got a lease signed, you've got no lease.
     
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  9. datto

    datto Well-Known Member

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    Not sure if you can discriminate because of a criminal record. It's not a cash counting job at a bank.

    In Mt Druitt, a criminal record is a prerequisite when trying to rent a place.:confused:

    "Sorry sir, your application has been rejected because of your clean police record. Go out and steal some cars and come back and see me next week. Oh, you can expediate things if you plead guilty".
     
  10. thatbum

    thatbum Well-Known Member

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    Signing a lease (or any contract) isn't the only way to create a binding lease. You have to be careful that your conduct or words don't fulfil the requirements for a lease as well.

    Generally just an approval of an applicant isn't enough in itself. It gets trickier when things like money, discussion of contract terms, and partial conduct gets thrown in the mix.
     
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  11. Firefly99

    Firefly99 Well-Known Member

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    I wouldn’t care too much if a tenant had a record (so long as it was a while ago) for stealing cars. But using meth, nope, don’t want them in my house. The potential clean up bill is not something I’d be willing to risk if they haven’t kicked the habit.
     
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  12. datto

    datto Well-Known Member

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    Maybe a $25K bond for meth addicts will suffice.
     
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  13. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Have the applicants paid a deposit?

    There could be a binding contract in place, but you wont know until it goes to tribunal and an adjudicator rules either way. I've seen these situations go in both directions.

    I hate to say it, but an ex-lawyer meth-dealer sounds like a terrifying tenant- criminal and clever. Tread very carefully.
     
  14. NedKelly

    NedKelly Well-Known Member

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    I would worry if they wanted to pay a years rent in advance. That seems to be the way of tenants that turn you house into a meth lab.
     
  15. charlie01

    charlie01 Well-Known Member

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    I think you can withdraw if your PM hasn't signed the leasing contract on behave of you, or if it has been signed but it hasn't been emailed to the applicants.
     
  16. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Dear Darran
    I am wondering about not disclosing previous 'activities'.
    (I'm not a lawyer so not sure).
    Telling porkies on your Tenancy application may be something you can use to 'exit' out of your approval?
    I hope this helps