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horror tenants

Discussion in 'Property Management' started by Logan, 2nd Jul, 2015.

  1. Logan

    Logan Well-Known Member

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    looks like I have come unstuck on my first 'practice' IP. I bought a new PPOR earlier this year and decided to rent it out on a 12 week lease while I prepared my current PPOR for auction and sold.

    The timing had to go like clockwork to make everything fit together and it all seemed smooth sailing until I visited to house today. The tenants have left and the house disgusting, they trashed it, there is grime everywhere, they didn't clean the bathrooms at all (or flush the toilet), they broke a window, left enough trash to fill a skip, the house reeks like smoke, they took all the smoke detectors out to smoke pot inside and they kept a live guinea pig in a draw in a built in wardrobe - seriously. The two young couples renting it got into some sort of dispute and the police were involved. I don't understand how it got so bad so fast.

    They also stopped paying rent a few weeks ago.

    I rented for nearly ten years before buying and would never have left a house like that.

    The PM warned me the house was bad, this was my dream home ($1m ++) that I plan on staying in for at least 7 years) so I was pretty upset. I decided on the way there to assess the damage and just get it fixed.

    I have 1 day until I need to move in, I now have a handyman, skip booked, glazier, steam cleaner and cleaning coming tomorrow.

    So am down but not out. On the way home from the house I made a few more advances on a QLD house.

    Lessons learnt:
    - no short term leases, longer leases needed and frequent inspections
    - review references checked by PM
    - no groups of couples
    - need a hard core PM
    - no tenants under the age of 25
     
    Last edited: 2nd Jul, 2015
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I hope you have landlord's insurance.
     
  3. wombat777

    wombat777 Well-Known Member Premium Member

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    Sorry to hear. I am in the process of finding my first tenant. I'm making a note of your advice below.

     
  4. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    How did your PM select these guys? Any word of caution at the time?
     
  5. Logan

    Logan Well-Known Member

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    I have insurance but was going to use their bond to pay for the damage and the missing rent. I don't think it is going to be enough and now need to work out if I should claim the rent and use all the bond for the repairs. I spent most of today ripping up piss soaked carpet and Guinea pig crap. They have destroyed so many things, it is very frustrating.

    I took them on as I was a bit desperate as they were the only applicants for the 3 month lease and I could not wait any longer as I could not make the lease any longer than 3 months.

    The agent is a personal friend and really did it as a favour as I would only be paying her for the 3 months.

    I saved about 10K rather than having the house sit empty for 3 months. Repairing the house won't put me out of pocket much but I really wanted the move to be positive. Resilience is my greatest asset and I working in overdrive to move on.

    Heads up that the tenants are moving to a rental in Marrickville NSW.
     
  6. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    You said that they didn't flush the toilet?? Yikes. Anyway, what a shocker... I'd try to claim whatever I could with the insurance. Make sure you have photos. Your agent friend could help with the claim. Good luck...
     
  7. Harro

    Harro Well-Known Member

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    Sorry to hear of your predicament. Unfortunately, this type of event happens far too often. The really frustrating part (aside from the damage done to your property) is that crap (people like this) seem to be able to relocate with ease. A cold winter on a park bench is what they deserve!
     
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  8. screwedon

    screwedon New Member

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    OMG really sorry to hear that. We are having similar problems with a tenant not paying and refusing to answer the phone.They have been served a notice but are allready 3k in arrears.We have landlords insurance though didnt choose it carefully. it's really not that good and we won'tbe able to rrecover that much. Untill we got a PM, it was smooth sailing for 4 years. Just heard we now have a squatter...hence i'm going to start a NEW thread. I hope your move goes well. Watch your back.
     
  9. Logan

    Logan Well-Known Member

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    Thanks group, I just got off the phone with AAMI, went you can get through to an australian call centre they are very good. I didn't pick the cover very well and basically can only claim malicious damage with a police report. They would then deduct 4 weeks rent and a $1000 excess before they paid a cent. The fence damage (they picked the picket fence in and smashed the gates) would need to cost over $4000 to break even.

    I am not sure I would even want to do a police report anyway as they know where I live (in the house).

    I had hoped to have it call fixed today so my young daughter did not see the damage.

    Lots of lessons learned.
     
  10. dabbler

    dabbler Well-Known Member

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    What are you scared of ? go to the police if they did this on purpose.

    In regard to your list, sorry, but you are making baseless assumptions & there is risk in letting others use any property of your own.

    Short lease has zero to do with this problem.
    I know some 25 year olds that are far more mature and respectful than some50+ year olds

    Groups of young people may be a concern, each tenancy has to be evaluated on it's own.
     
  11. JenW

    JenW Well-Known Member

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    I'd agree with Dabbler, short term leases aren't the issue - we've only ever done short term leases, and we've never faced a situation like this. Properties left dirty, yes, but malicious/negligent damage, no.
     
  12. WestOz

    WestOz Well-Known Member

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    Care to mention who the covers through screwedon?

    That interesting Logan, I have a few policies with them, read the .pdf carefully, will have to give them a call and put the pressure on for a clear answer on similar scenario's.

    Can anyone with similar experience recommend insures who haven't knocked back similar?
     
  13. dabbler

    dabbler Well-Known Member

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    Why would it be unreasonable for someone to contact police if malicious damage has been done before a claim is accepted, maybe the claim form requires it, either way, that would seem entirely reasonable, the insurer could then try to recover money possibly rather than just raising the premiums.
     
  14. Spiderman

    Spiderman Well-Known Member

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  15. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Sorry to hear.

    It's not a short term lease issue - these people are just inconsiderate and disrespectful. They'd do the same irrespective of the length of the lease.

    Hopefully it all works out.
     
  16. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Sorry to hear about this. I had an IP trashed at the end of 2013, its never fun.

    I guess this is a good lesson for others, always buy an appropriate landlord insurance package from a specialist insurer. Most big insurer policies are rubbish.
     
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  17. The Falcon

    The Falcon Well-Known Member

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    Geez sounds like some extreme grubs.

    @DaveM can you share circumstances of your 2013 incident please?
     
  18. wombat777

    wombat777 Well-Known Member Premium Member

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    .

    @DaveM, who are the specialist insurers worth considering? I've flipped and flopped between two insurers chasing a multi-policy discount on insurance for my PPOR and IP. I would consider a specialist insurer if the policy protection justifies it.
     
  19. Kinnon Bell

    Kinnon Bell Finance Broker

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    EBM and Terri Scheer are usually considered the specialist LL insurers.
     
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  20. Arashi87

    Arashi87 Well-Known Member

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    what i wonder is where those people renting now :p