I feel like someone's being scammed.

So... I've just signed a new tenant up but something is weired.
House was way over rented for the last 5 years at $440/week for a 3x1. In the current Perth market this took its toll. Tenant moved on to bigger and cheaper things and I was left dejected knowing i'll get "At Best" $350 but most likely $300.
So I threw an add up online and took the keys back and started looking at maintenance/upgrades of different sorts to maximise return. I put the add up at $400 just to see if there was any intrest at all. 2 days later someone with an accent rings and asks if it's available. Sure, come by for a look if you like. Keep in mind I've not had much chance to do anything but run a vacuum over it.

Guy looks at it... I'll take it. No negotiation. Odd, considering his country of origin (they invented the haggle!)

He says he's in tourism and "shevels" alot between sydney, Melbourne, and perth. Took me a while to realise he means "travel".

He said they want to use it as a "base" and was very happy it was so close to the airport. "Very little furniture, no cooking". Odd, but what ever floats your boat.

He gives me a few hours to go get the paperwork ready and he will meet me back at the house with his uncle. In the mean time he's emailed me all manner of docs including passport's of him and his cousin who will stay there also. Company profits and how much % share he owns. International drivers license (does not own aussie one) All up about 10 attachments plus a real estate agent mobile I can call as a reference.

I print two rental agreements and a bond lodgement form.

Signs up, but doesn't want to sign the bond lodgement form. I tell him the government holds the bond so it needs both our signatures to access. Makes sure I don't blow it at the casino. He flix $1600 cash onto the bench for bond and says if I need to access the bond it will take too long, couple of weeks. I should hold the bond rather than give it to the government. It's too protect you against bad landlords though, i explain. It's not for the landlords protection. "It's okay. I trust you".

So I accepted that at the time, but read up on the rules as it was odd to me... seams I'm eligible for up to a $20,000 fine of I don't lodge bond so now I'll have to convince him!

The next oddity is the water usage. I explain he'll pay 100% usage and I'll pay rates. "Okay, Bill will come here?"
"Yes, it'll come here"
"How will I know it is the water bill"
"I'll get your name added as the tenant, it'll come addressed to you"

Well he didn't like that either! Insisted it should come addressed to me, but he'll recognise it because it'll be the only mail for me so he'll open and pay it....o...k...

He wants to pay monthly and I say okay... $400×4. He corrects me, no there are more weeks in the year than that... okay ($400×52)/12.... oh look at that... heh that's significant.

His "uncle" who turns up with him he says is his Mr fixit. Quietly inspects everything and only talks to him in his native tongue. The tenant announces after a while, anything small we can fix for you. I tell him I'm a tradesman too so anything they want fixed just let me know. I'll be on it right away, or get someone on it right away. "Anything small we can do for you, no problem. Anything big I let you know".

He also only wants to communicate via email "very busy and can't answer phone all the time".

So anyway... he is signed up, bond paid, ready to move in early Feb. I tell him I'll paint before he moves in, fix a few minor things but he doesn't seem concerned.

Thinking about the days events...
It was odd he didn't want his name on documents going to the government (watercorp, bond admin)

It just feels slightly odd and i was wondering if there was an obvious scam I'm missing here... the house really isn't worth more than $350/week.

 

No govt lodged docs, cash bond, over market rent... within a week your house will be sublet or used as a brothel/grow op etc. Abort.

 

Did you check the reference?

 

Very sus

report it to the police just in case. Make sure it is fully insured and you are covered and remain covered.

Could it be a good location for a drug lab, a brothel?

 

Meth lab perhaps?

 

Sounds as if the house may be used for illegal activity. It would appear your tenant wants no record of his rental.

Recent Brisbane police raids on luxury rented houses full of immigrants making scam phone calls, locked in with their passports held by the organiser. Only discovered when one escaped and ran down the road and alerted people who took him to the police.

You must lodge the bond with the relevant authority, it is a legal requirement.

It would pay you to keep a close eye on the property and perform all regular inspections legally allowed.

And if the water bill is in your name, you are responsible if it is not paid on time, with possible implications on your credit file.

Frankly, I think you are wise to be very uneasy.....
Marg

 

This guy sounds awesome!

Say you want in as an investor, don't ask questions just ask what %return he offers. Give him cash then buy big brown paper bags and a wheelbarrow to collect

 

Well we rang the reference and of course it was clean.

In W.A. the rate payer is ultimately responsible for water usage anyway. If stop paying water usage then the rate prayer will be taken to the cleaners.

I've got insurence and have had it for over a decade with no claims. Updated it when I was getting 440/week.

I'll email the guy today to say it's a legal requirement here now for the bond to be lodged. I'll make sure I do it all above board because of my suspicions. I guess I'll then have to keep an eye on the property as suggested. Regular inspections and the like.

 

I did think to myself... after going through 3 sets of crap Aussie Bogan tenant's in my other property, I'm happy if this guy maintains rent and water usage. I don't care what he does in his own abode. The laws are stacked up against landlords, and only contribute to me saying "just pay what you owe, the rest I don't care". Yes, he sounds awesome to me too haha.

 

Was his "uncle" the reference?

 

Well it's deep in suburbia on a road with moderate traffic so I suppose vehicles coming/going wouldn't be noticed. They did genuinely seem happy it was so close to the air port so if anything perhaps a brothel? But it's pretty open plan. I imagine a brothel would want hallways with rooms or something.

 

I know some people are very private, like me,

but that is going a bit extreme,

all his overseas documents and references seems very suss,

as people have suggested, brothel, sublease or a refuge

 

@redchair

Was this his uncle?

 

Haha yeah. I joked about that before we rang. Told the wife references mean bugger all anyway. I've had some really bad tenants with shining references from property managers. One in particular... I'll never trust a refference now.

 

References from past property managers are fine. Private landlords are not, because they're usually not an actual landlord.

Sounds like this is going to be an interesting learning experience.

 

Do you have overhead powerlines to the house? If so, take a picture of them. When you come back next week and see the cable appears bigger (more cables), you'll know something is up. Big giveaway for hydro houses.

 

What bond? Is there any record if you receiving it?

 

Honestly, the people that actually rent out meth or grow houses are way smarter than to look obviously dodgy when you initially sign them up.

Its probably just something a bit weird and foreign, rather than blatantly illegal - that would be my bet.

 

Your scamming them for above market rent ?