In less than 3 months, the place is a pigsty again

Some of you would know that the end of last year was not a fun time - after evicting some bad tenants (always behind on the rent, not paying water, and the house had more than its share of fair wear and tear), I ended up having to spend $20,000 to get it back up to rentable (insurance covered $8,000, and I had to fund the rest).

After it was finally all finished - holes were patched, new paint, carpets, new fans and a/c, and a lot of other general work was done; it looked almost like new again - it sat on the market for weeks, and then I had to drop the rent to get tenants in. The new 'good' tenants only moved in December last year.

Having now decided that this property is causing me far too much of a financial and mental drain, I've decided to sell it. The estate agent who was ready to put the ad online today, just did a walk through - it looks so bad, she can't imagine it will sell in its current state! Turns out, they're running a daycare centre from the garage - the walls in the house are filthy, broken kitchen door, broken (brand new) towel rail...... all in only 3 months - and the place is not presented well at all.

The tenants are being hit with a remedy notice (for the daycare centre and the damage), and the bills to get the place fixed - but given that they're already almost one week behind on the rent, I think I'm headed down another slippery slope of unpaid bills and a lot of headaches. Problem is, I can't try to tell it without tenants in it - I need the rent, as my buffer was used for the reno and repair work only late last year, and I haven't had time to build up another one yet.

I'm wondering how many mirrors I broke or ladders I've walked under

 

I feel for you. We had a similar issue with our IP (one of the tenants was a property manager I'm often very tempted to name and shame).

Do you have the option of borrowing to cover the costs while you sell? It's far from ideal, but may be a better long term outcome.

Best of luck.

 

Thanks @Kat. I really don't want to even try to borrow any more - the idea of going through the process of another loan application right now is enough to have me leap off the nearest tall building.

First thing's first - I need to work out if we can get rid of the tenants.....

 

I'm so sorry to hear this @KayTea. Best of luck with your next steps with this home.
Extra thought: Once you sell you could keep the loan open to buy something else that's better/less hassle. Its up to you though.

 

Not too sure about how that would play out - I'm likely to be selling at a loss

 

Ahhh... is this property in the Ipswich area? Perhaps it might pick up in the next 18 months?

 

Will your landlord insurance pay for the work?

 

What horrible luck Is it a 6 month lease? Might be better to wait till they are out, do a quick cleanup and then consider selling/looking for a new tenant concurrently?

 

running a day care centre so a commercial enterprise and without consent?
hope they can be removed and the place cleaned up and relet or sell.
perhaps they also need to be reported to the authorities if the place is unclean and unsatisfactory for the children in their care?

 

Sounds a bit like my first IP- lotsa hassles with tennants.
With regards to the childcare angle- may be able to be used to force them out asap in particular if the place is unsafe for kids
What are capital growth prospects for house? Not sure about your specific situation but if in Ipswich the prospects there are looking OK so perhaps keep onto your PM (if you are using one) to keep pushing to get them out, check your process of selecting tennants ie get onto a good local PM with sound tennant selection processes, make sure your landlord insurance is with a good mob (I think I use CGU and QBE/Rentcover) etc.

Don't rush into a decision on this- well worth exploring all options before you sell at a loss

Good luck

 

I think it is more likely to be an unregistered family daycare type of set up - a local mum agrees to look after the some of the neighbours kids while some of the parents work. I'd be very, very surprised if it was an above-board business, with all the required boxes ticked.

 

I'm not sure that they've done enough damage yet to claim it on insurance - I just can't believe that a place can be let go so soon after being fixed up. I've lived in a place where, even years after the walls were painted, they still weren't dirty enough to warrant anybody noticing it (just usual dust build up etc)

 

im really sorry to hear this, I know exactly how you feel

minus the child care centre bit, ive never had that one before?
ive had a drug lab/shop before...

please make sure you have your landlords insurance up to date... I cannot emphasise it more

 

these sort of tenants , I can guarantee your bond will be exhausted straight away,
arrears, utilites, cleaning, and your bond is long gone!

sorry to being cynical, just being realistic

 

Sorry for your sad experience, I am also a sad landlord. How did you manage to replace carpet? Does it cover by landlord insurance?

 

If your not sure claiming insurance is worth it, it cant be that bad.

You cant use your own standards on tenants. Follow the rules, get them out and track your numbers closely to see what your options are.

 

Aaaaghhh damn tenants!!!
This is the downside to property management and it happens no matter how good they look on paper.

I hope you are chasing them through court for expenses they caused that insurance did not cover.

 

Not good. Any registered child care place will either come under the control of your local council or state department of health. Someone there should be able to pursue the infringement of an unlicensed child care place. An unsafe workplace can be reported to workplace standards (state dept). I hope you figure out a cost effective solution with your agent.

 

Already expected that

 

May not be bad enough for insurance, but can't have Open For Inspection, and potential buyers through, either. Even the real estate agent has said that it presents so poorly that it won't sell when presented as it is currently kept.