Damaged incurred by tenant costing more than the bond money ?

Hi People,

I'd like to know what shall I do if the tenant who left the property already costing me more to repair than the bond money they lodge with the property manager?

For example:
Broken toilet cistern
Timber flooring damaged due to water leaking from the aircon not reported to the managing agent
Dirty & Oily kitchen
etc...

The total cost to repair, replace and professional cleaning is more than the 4 weeks rent.

I suspect the property is overcrowded by the tenant.

Note, since this is my first investment property, I do not have the landlord insurance with me.

 

Well no offence but it is pretty stupid to be uninsured. Very stupid.

Okay onto what you can do, I think the most important question is, Do they work or are they on Centrelink?

 

Either you pay, or, you chase them to pay.

 

Well, firstly, you have to pay for it. How else will things get fixed? But I've got a few questions for you.

1) Why haven't you got LL Insurance?
2) Do you have a PM? If not, why not?
3) The lease stipulates the number of tenants. Why do you say overcrowding?

 

Barclay Mis perhaps

 

They're a debt collector that collects over and above what bond / insurance might cover, or in the absence of insurance.

As far as I'm aware, they basically have 2 models
1) As a once off - ie pay them a fee (and / or a percentage?) and they'll pay you out and then go reimburse themselves from the tenant - ie put them on a payment plan or take their belongings or whatever
2) As like an insurance - ie pay them an annual fee and they'll have your back when needed

 

Did you insure your first car?

 

Yes, I've got property manager, but I have jut noticed this lt month when I decided to inspect it myself.

The tenant is coming from "south Asian continent" region.

 

Dig out your last inspection report. When was it done? Not sure why the "race of the tenant" is relevant. You signed the lease.

 

The last inspection report was sent as the last Tenant vacated the property. It was good and well maintained.

Entering the 5 months lease term, I've decided to inspect it myself and quite surprised they have not maintain the property very well, hence I've send out the end of lease notification last week after I did the inspection myself.

 

Barclays won't take it on unless the client was with them prior to this happening.

 

I would recommend getting it fixed, getting an order of debt established through tribunal and use that to claim through a magistrates court

For next tenant
Use a specialist landlord insurance, Terri sheer or ebm or similar (stay away from sgic, alliance, cgu or any bank insurance)
Enrol with Barclays - as per Daves suggestion

 

No, theyve done once off services

 

Four weeks to repair seems like a bit of a stretch.

Sounds like your agent wasn't doing their job if they didn't notice on either regular or exit inspections.

 

If they are still currently a tenant your PM can breach them for the damage they have caused.

They may well be able to clean it up to standard when they leave which leaves the broken items which you can bill them now so that they are repaired.

If they don't pay that before they leave then your PM seeks permission from the relevant govt body to have the bond used for fixing and any excess your PM needs to keep claiming against the tenant (ie directly or via small claims court)

 

Toilet cistern is pretty cheap < $100 from hardware store. Expensive if you want a plumber to install it vs doing it yourself. Also what do you mean by broken. If its just parts inside broken / not working or flushing properly then its likely just worn out instead of damage from tenant.

 

Get LL insurance Asap. Never make the colossal mistake again of not having LLI.

Luckily the repairs are not devastatingly expensive.

 

I note that you are in NSW

Unlikely that you would win at the tribunal for either the 'broken' toilet cistern or the damage to the timber floor.

Both would come under wear and tear unless you can proof that they took to the cistern with a hammer.

 

i got one of their pamphlets in my landlord statement a while ago,

not sure how effective they are,

i would be happy to give them a percetnage but it would be less than 50%,
plus im not oaying them big fees to chase them with no result