QLD Nightmare situation

We purchased our first property interstate (QLD), the property came with existing tenants. This allowed us time to plan our move and as far as we are aware the tenants were told that we would be moving into the property at the end of their contract approx 5.5 months from settlement. 2 months notice was given and the date to vacate the property has now passed.

The tenants have refused to leave and we are about to become homeless as our current rental is ending as we have given the notice to leave. We have also already handed in our notice for our jobs, I myself have already left my job. My childs daycare has also been given notice.

Our PM is lodging for a tribunal. I believe they have received a lot of abuse from the tenants.

Another issue is that if the tenant remains in the property for over 6 months we will incur stamp duty fees on an investment property which was never our intention as the plan was always to make it our family home.

Some questions

• Is there any leeway on the stamp duty? We physically can't get access to the property although it is our intention for it to be our personal home.
• What are the time frames for getting a warrant of possession?
• Is there any recourse for funds lost over this situation? E.g having to cancel removalists, putting belongings into storage, having to pay for additional accommodation for my family?

This is a situation I wouldn't wish on anyone. I am completely lost and powerless on what happens now. Any advice would be much appreciated.

 

1. accountant would probably have to answer and deal with that one for you

2. 2-3 months max to evict them if your PM does what they're supposed to and there was half a decent lease in place to begin with save for having to first go and get the tribunal to bring that existence then start the eviction process.

3. no.

 

You will just have to follow the eviction process.

We're in a similar position with an interstate property, but our situation is completely different. Home was bought to be a new PPOR, but was in QLD, so couldn't move there during Covid, so put tenants in. Tenants have been given notice, and should be gone in a few days now, but they haven't been able to find somewhere else, but we are quite flexible and since we're not selling here, we're happy to give them some leeway to get themselves sorted. We've given them a few more weeks, but if they can't find somewhere by then, we'll have to evict and force them out.

The situation is very tight with the rentals in the area we purchased, and many tenants are having difficulty getting another rental when they need to move.

 

Very similar to us we were also unable to view and move into the property due to covid. If tenants remain 6 months past the settlement date the property is deemed an investment property for tax purposes even though we intended for it to be our PPOR within that time frame. We spoke to revenue today and there is not leeway on the additional stamp duty even though we are going through the eviction process with tenants and it's completely out of our control. I completely understand the rental market is hard up there, the tenants had verbal warning that we would be moving in at the end of their contract and the official 2 month notice too. It's a terrible situation for everyone involved and is going to be a very costly lesson for us.

 

Sorry to have to say this, but giving notice to vacate your rental premises, resigning from jobs and giving notice to child daycare all based on a termination date on a notice given to tenants was extremely risky and fraught with danger - and those dangers and high risks have materialized in a big big way.

As you have now worked out, there is no guarantee that just because a tenant is given notice to vacate, that the tenant will vacate by the date stated on a termination notice.

This is similar to property managers and owners signing up new tenants on leases before the existing occupant (tenant or owner) is still in occupation of the subject premises. I have referred to this in the past as being the golden rule that must never ever be broken ie: only sign a lease when you know 100% that the premises are vacant and ready for occupation.

None at all.

Unfortunately you are powerless until you gain possession of the property, whether by the tenants voluntarily vacating or forcing them to move via the eviction process. As has been stated above, you just have to follow the process now.

 

This is a horrible situation for you and limited in the actions you can take. It may be worth trying to negotiate with your tenants and offering to pay some of their moving/cleaning costs or rent difference at a new property given they will have to move sooner or later. Its painful but might be less costly for you guys in the longer term.

 

Costly lesson, but this is the main reason why you should always buy property under the vacant possession clause.

 

Hi Mel,

Can this be done after eviction papers have been lodged for a tribunal. I am more than happy to offer the tenants help with moving costs and cleaning costs but i fear this would delay current tribunal processes?

 

No
If the tenants find somewhere to move to and leave tomorrow there's litle point in go ing to tribunal to evict

 

I understand that but my property manager has lodged for a tribunal already. In the meantime whilst we wait is it wise to make monetary offers to the tenants to vacate or could this delay or cause complications for the tribunal in the mean time.

 

I think it would be a separate negotiation along the lines of "if you vacate by x we will credit you $x, otherwise we will continue to follow legislation through tribunal and you will be evicted"

 

Thanks Melissa,
This is really helpful i'll speak with my property manager today about doing this and if it's feasible.

 

What a horrible situation!

Agree with all earlier comments:
- 2-3 Months for WOP process to be carried out to fruition.
- Recommend offering cash incentive for them to get out, be careful to offer it with carefully considered terms (e.g. $4000 only if you move by this day, house returned to condition it was in at entry, 25% paid up front and remainder paid once keys are returned).
- Yes it was risky preparing to move before they left, but you are stuck in a pretty unlikely situation, so don't beat yourself up- 99% of people aren't a**holes and cooperate with the notices given.

 

Thanks Tom we knew the risks but obviously trying to time the move with them vacating was a hard situation. Unfortunately we are just in that 1% of unlucky people.

The terms I had in mind was 3k + return of their full bond as long as the property is left in its original condition on which they arrived.

I appreciate everyone's input to the current situation. I do not want to be the bad guy evicting a family, but I have to put my own family and finances first.

 

+1 for what Tom has said here too.

as an aside, I’d think of the tenants have to go through the tribunal process, they will find it extremely difficult to convince another property manager to move into another rental.
-so the cash incentive should really make them get up and move out.

This scenario happened to my grandparents about 30-years ago.
Non-paying tenants refusing to leave. Squatters basically.
Clearly a different world then - when landlords had clout - as he simply changed the locks when they went to the shops. Threw all their stuff on the lawn and awaited their return.

I wish you Good luck though. It must be very stressful

 

If only it was that easy these days. Yes the past few weeks have easily been the most stressful I've ever experienced. I can't sleep and it's certainly affecting my mental health.

I spoke with revenue today they seemed understanding of our situation and gave me advice to fill out form D2.4 and to lay out in detail the situation we are currently in. We would be contacted to discuss our circumstances. I'm hoping I can seek some sort of leniency on the matter. That money will be incredibly important for us when we move our of our rental next week.

 

I have to totally agree with @Mel Morgan
****** tenants are most of the time the ones who are the most easily motivated by money.
It seems your risks gonna be very costly, so come with an offer they cannot refuse. 1K, 2K, 5K cash and you'll see them out within 30 minutes.

They can get lots of hits for 5k...

 

Expensive lesson, but unfortunately - the path with least resistances for you guys.
It feels like you're rewarding bad behaviour, which it is - but the new rules made landlords more business people and less private people.
It's all "risk - reward" calculation now.

It makes good renters life harder when they try to apply, while allow bad bad renters much easier access to abuse the system.
You're just caught in the middle. You're not even in the rental game.

 

Show your tenants some money & you’ll be surprised how quickly some will respond to that offer.

 

I have had people tell me they were going to do this when I was not the LL, some people really think the world owes them and they can do as they like.

Just keep in touch with PM all the time, there is a process, and it should not take as long in QLD as others are saying.

I sold one recently and the tenant started playing silly buggers at the last minute, these people hold everyone up but they really do not care, a persistent agent is reqd, you gotta be on them all the time and follow the rules.

They should be ready to get an order for possession now.