Next door owner (schizophrenic) causing large turnover of tenants

Discussion in 'Legal Issues' started by Jelsa2, 6th Mar, 2019.

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  1. Jelsa2

    Jelsa2 Well-Known Member

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    Hi, I hope someone can assist me.
    I have an investment property in Perth which is a strata titles complex. Three years ago a lady bought the unit next door and she has outbursts due to her schizophrenia which has caused 4 lots of tenants to leave my property. Last outburst on the weekend resulted in police attendance as she was threatening to kill my young female tenant who had to lock herself in the bathroom for 40 mins til police arrived. Of course she and her boyfriend want to terminate their lease. I am being put at financial risk due to this turnover of tenants and the real chance that my real estate agents may consider my property too high a risk for future tenants. I’m bleeding money which is scary as I only work part time now. Is there anything I can do legally to recoup any money from said tenant due to her harassing my tenants? She has a guardian and I’ve asked the property manager to get in contact with them so I can meet up to discuss. The tenant has been sent letters from the strata manager before for the same threatening behaviour to my other tenants. I was intending on selling toward end of year however may need to do so sooner at a big loss. My loan is fixed til Oct, would the bank take into consideration why I might need to sell earlier than intended to pay out the loan or would they still charge break fee costs? Any suggestions would be gratefully received, thank you.
     
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  2. Shogun

    Shogun Well-Known Member

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  3. willair

    willair Well-Known Member Premium Member

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    It is difficult to avoid the problem's with mental health,the only way is fast tract the sale..

    I just hope this person does not know who you are and where you live ..
     
  4. Jelsa2

    Jelsa2 Well-Known Member

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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I would consider using a selling agent that isnt as aware of the tenancy issues NOT the one that you have used as PM. Discuss the obligations for you to disclose in a sale with your solicitor before listing it.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I wouldn't be too concerned about breaking the fixed rate. At the moment, most of the fixed rates I see don't have a break cost at all. If there is a break cost, with only 7 months before expiry, the cost probably isn't going to be prohibitive.

    The best way to know for certain is to call the bank and ask.
     
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Tax Tip - Break the loan while the place is tenanted then sell. Its then deductible.
    If its a break fee at time of sale its a CGT cost and only 50% effective.
     
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  8. Jelsa2

    Jelsa2 Well-Known Member

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    Thanks Paul for that tip!
     
  9. Jelsa2

    Jelsa2 Well-Known Member

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    Hi Peter I did call the bank & all up around $450 so I’m happy with that.
     
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  10. Jelsa2

    Jelsa2 Well-Known Member

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    This includes the discharge fee ($350).
     
  11. Ted Varrick

    Ted Varrick Well-Known Member

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    How many units are in the strata complex and why is the strata committee and strata manager not sending the matter to tribunal?

    Further, maybe you should seek some legal advice as to whether the Owners Corp has some liability in not dealing with the matter in a timely manner.
     
    Last edited by a moderator: 8th Mar, 2019
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  12. Bonz

    Bonz Well-Known Member

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    Apply for a misconduct restraining order
     
  13. thatbum

    thatbum Well-Known Member

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    I don't think that would do much, and its arguable whether OP would even have grounds.
     
  14. Jelsa2

    Jelsa2 Well-Known Member

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    Hi Ted
    There are 15 units. My RE has said same thing and I’ve spoken to Strata Manager & meeting with him today. Thank you
     
  15. thatbum

    thatbum Well-Known Member

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    It would be almost impossible to pin liability for those sort of thing on the strata body in my experience. Its just a very high bar legally for that sort of thing.

    Same goes for pinning liability anywhere except for the person themselves.

    @Jelsa2 This neighbour - are they the owner of their property, or the tenant? I think you referred to them as both at difference points.

    There might be some options depending on what their tenure is. Have you contacted their guardian? They would have the power to move them on actually, so that's another potential avenue.
     
  16. Angel

    Angel Well-Known Member

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    Where are you going to move the neighbour on to? The local hospital?
     
  17. Jelsa2

    Jelsa2 Well-Known Member

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    Hi ThatBum, the person is an owner. Strata manager is contacting the guardian. This is not the first time. There have been a number of incidents over last 2 yrs. starting with demanding cigarettes in the middle of the night when a person doesn’t smoke to person was threatening my previous tenants with a knife. So the behaviour has been escalating. I’m hoping to gain more information at the meeting today.
     
  18. Sackie

    Sackie Well-Known Member

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    If you can establish and prove to your local mental health community team that the mentally ill person has on going suicidal ideation, homicidal ideation or active thoughts of self harm with a plan, then its their responsibility to investigate and if need be, hospitalise the person for treatment and keep them under a scheduled order ( basically against their will if need be) in a hospital until they are more stable to be back in the community .
     
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  19. Jelsa2

    Jelsa2 Well-Known Member

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    Hi Sackie
    Thank you for the information, I will pass onto the Strata Manager who will be in contact with the guardian.
     
  20. wylie

    wylie Moderator Staff Member

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    Unfortunately even if you can get her carer to have her hospitalised, the patient will be let out again and again. We have a relative in this situation. Owns her own home but thinks she is better, stops taking her medication, hospitalised, let out, goes home, thinks she is better, stops taking her medication, hospitalised, let out... ad infinitum.

    There is no easy answer.
     
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