Help - Trapped in tenanted Property

Hello Property Experts,
I finally bought my first property for investment purposes. Before paying the deposit I emailed the rental agents on 16th September, who were different to the selling agent, regarding the tenancy reports and history. They told me since I am not the owner yet, they cant share any reports but "There is no dispute with the tenant" and the tenant is on a month on month lease. Based on this I proceeded with the transaction. Two days before the settlement on 19th Oct, I got to know the tenant had paid rent only until 28th September.
Today I asked the rental to intimate the tenant of 4 week notice to vacate the property to which he has replied that the notice period is 60 days if I am asking tenant to vacate and I need to provide reasons/evidence for eviction. I understand that I can ask for eviction on the basis of non-payment of 14+ days of rent but if the tenant pays partial rent this becomes null and void. The rental agent tells me they have to work in the interest of their client (previous owner) and hence could not have shared tenant information before settlement.
I don't have any agreement with the tenant or the rental agent at this point. This is my first property and didn't expect it to be such a nasty experience and I acknowledge my naivety. I am mentally distressed to find myself in this situation, cant get over the feeling of being conned

Can the learned members please advise what should be my next steps please?
* 4 week notice should suffice, followed by VCAT?
* 60 days notice is required, followed by VCAT?
* Save myself sleepless nights and resell the property?
* Can I report rental agency for making false representation?

Thanks in advance

 

It's possible that this situation is not as bad as it first appears.
Just maybe, the tenant has paid up until the date of settlement - the last payment being made in mid-September and they paid their previous landlord ahead of time - because they're waiting to see whether or not you're going to keep them on as a tenant ....?
It's not the ideal sitiation but maybe if they're looking after the property and they pay regularly, they may just be waiting for a new lease? Maybe they were even told to do this? Though, not the smartest move on their part.
I hope this is the case. If not, it is likely that you'll still be paid in the long run.
Being a landlord isn't easy, unfortunately. Good luck.

 

Thanks Mate, yes its in Melbourne West. Looks like need to prep for a long battle :|

 

Apparently the tenant is making partial payments since July and last payment was until end of Sep. I get its not easy, but wasn't prepared for this start, I will need all the luck, Thanks.

 

Since you have been through this, can you please provide an estimate of what kind of expenses and rental losses am I looking at to get out of this mess.

 

Probably because they paid well in advance like most tenants do. If they're on the lower side of average income, they'll be relyIing on bond to hold the fort.
Everyone's been through it. You need to find out why it's happened. Ask your property manager to explain it to you.

 

Correct - you/solicitor needed to request this information through the vendor/vendor's agent.

Was vacant possession part of the deal? Why/why not?

Was the settlement figure adjusted by the outstanding rent? It would be difficult if the solicitor hadn't requested & received the ledger.

Have you appointed an agent to manage the property & signed the agreement?

Has the bond been transferred to your name?

 

This has not been done yet, I asked about this yesterday. The rental agents are really dodgy, I doubt things will move until new agent takes over. For example, they tell me the tenant never signed back the condition report (I have been a tenant myself, this sounds bizarre to me)
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Thanks for these questions, please find answers inline.

 

This ^^^^^

Google reviews of local agencies

Approach one or two and see how you are treated/received (you could even pretend to be a tenant looking for a home), pick one and ask them about a management agreement for your property (read it ! In particular the amount you authorize them to spend on repairs and any costs associated with terminating them).

At the time you sign with a new manager organize a property inspection (and you are entitled to attend with them, am assuming you didn't do a settlement inspection ?), they will organise/request the rental file from the old managers and all associated transfer to become the new managers.

Ensure you discuss with them as to if the current tenant is on a current lease or periodic (periodic is continuation of lease agreement after set period expires) it is preferable to have a lease agreement, so your new PM should present a new 6 or 12 month agreement to the tenant at inspection (for the tenants security of continued residence).

Ensure the new PM obtains the current tenants ingoing inspection report from tbe previous manager, and that they take plenty of pic's and provide a report of the property when doing the inspection

 

The tenant is supposed to, (and the PM should have originally chased it up) but the tenant doesn't have to sign and return it (from memory) as they are given a set amount of time to dispute the report/property condition, if they don't the report is presumed to be accepted (as it wasn't contested).

Buying with a tenant can work (you only ever hear about the one's that DON'T go well) and this is why many prefer to buy with vacant possession.
Best of luck with it

 

The agent is not your agent until you sign a management agreement - they don't work for free and cannot work in your interests until you sign them up - this is in your court as you have no agent, no details of the tenancy and nowhere for the rent to be going as the old agent doesn't simply carry on your business without a contract.

 

Thanks for the response. I did the settlement inspection and ensured major items from the building inspection done prior were addressed. However, I was advised by my conveyancer we cannot back-out for the reason tenant is behind on rent. The current lease is month-on-month but with covid regulations in place it seems a months notice for eviction isn't valid and I need to provide 60 days AND a valid reason. The original plan was to continue the same agency and tenants, but with the way things turned out, that is not an option.