Hi Guys, I have a new tenant moved to a property is QLD. and since day 1, they raised issues (some are genuine and some are not existing). e.g. they raised the ceiling is full of mould all over the house. I got scared, and sent a handyman, he said nothing there, there was very minor mould in the bathroom, and was cleaned by the cleaner (through bond clean). There is solar in the house, and it have an error on the inverter screen. been asked last week to send an electrician, and today the property manager sent me an email that if this is not repaired by tomorrow, Tenant will raise a notice to remedy breach. I understand it needs repair, however, it is not that urgent after 3 working days. Can you please tell me from your experience what you would do. I have not collected any monies from the rent so far, all goes to repairs. please note the house if a good newer house. that have no issues at all. I am thinking the tenants wants everything perfect. Please share your experience or guidance for similar situations. Thanks
There may be some sort of expectation, they are paying for things and not getting what they're paying for.
Hi Scott, and I don't dispute that. I have replaced things that are considered as nice to have (by the PM). I like the tenant to feel like home, and I would do the things I would do in my own house. It is not like I did nothing.
Hi R.B, I manage a property where the solar turned out to not be working since day 1 (obviously the tenant would only know once they received their first power bill some 3-4 months in etc). It's an old house and an ancient solar system - only 1.5kW, the Owner decided not to fix it and instead we came to a compromise with the Tenant of a rent reduction circa $5 per week which equates to $280 per year, which given the current feed in rates and lack of efficiency of the system and the fact all tenants work and away during the day so get very little benefit of the system-generated power during the day, comping them $280 is probably on the generous side and has put this issue to bed. I have also managed older properties where they constantly have recurring mould problems. In the past I have also lived in these kind of properties myself so know where they are coming from. It almost seems like there is no easy fix in that Mould Men have been called to "professionally clean" the surfaces, the property is well ventilated, and 6-12 months the mould is back. I've read it can be stuck in the surfaces (such as the drywall or fibro, etc), and the only way to get rid of it is to replace all those cladding materials which is a costly exercise. Even repainting with mould killing-additives in the paint only seems to buy more time but still a band-aid. Mould problems are a tough one for Landlords because the Landlord is always responsible to rectify it by default and/or then try and claim compensation back if it can be proved it was caused by the tenants. If the Landlord doesn't fix it the tenants can claim abated rent and rent reductions going forward, as well as compensation for having their belongings cleaned if infected and it just gets worse and worse (google search some case studies and xCAT decisions). I have also managed tenants where the problem is their expectations are unrealistic and they forget they're not in the Ritz Carlton. Tenants like this, if the Lessor has done everything reasonable and they're still complaining, they need to go as it will never stop. If your tenant issues a Notice to Remedy Breach and it's reasonable/just and you don't comply, they either create grounds to terminate the lease without penalty, and/or create grounds to go to xCAT and seek compensation by way as touched on above.
I don't get why you're worried about the notice to remedy. Basically its a formal request for you to repair the issue. If you're getting it done soon anyway, what's the problem?
I understand what you're saying @R.B. and I agree that it sounds like these tenants have a poor attitude. You aren't objecting to providing the house in good repair, but you're concerned that these tenants are going to be continually demanding small items fixed in short time frames. It is COMPLETELY ridiculous to issue a Form 11 over a minor maintenance item after three days. As far as how this is likely to continue on.... Sometimes you'll get fussy tenants who are also meticulous. In exchange for making repairs that other tenants wouldn't care about, you'll get tenants who treat the house like a Palace. ..... Other times you get trash who demand the world from you, make your PM's life difficult and treat the house with disrespect. It's too early to tell which one you have now, so you'll need to sit tight and work with the PM. My gut feeling is that these people continue to be problematic.
If you are happy to let them go, perhaps ask your PM to offer to terminate the tenancy with no penalty (provided they exercise this immediately). That will help them understand their options!
What a pain. Reduce rent and disconnect and exclude in future lease, or, ignore the mad rush, fix it, and compensate for the tiny amount it may have cost them......and prepare for a likely painful tenancy.
As @Tom Rivera said above it is probably too early and there is not enough information to determine if this will be an ongoing issue. As investors we have all been there and understand, but just be cautious expressing these sentiments to your PM unless you are sure they are adept at managing these situations as it can often make it worse. If they turn around and say "look the owner has had a lot of maintenance as you know so they are just going to consider what to do with the solar issue and let us know next week", the Form 11 from the tenant then becomes understandable. - Luke
Were any of these problems an issue for the previous tenant and what does your PM say about the house. Is it near Townsville?
If the property was advertised with solar panels, or used in the sales pitch , then they really should be in working order. If the property had been vacant for a week or two , then things like this should have been attended to in this period and everything else in good working order. Waiting for a new tenant to walk in and then reports things not working , doesn't really start things on the right foot, especially if there is a reluctance to fix the issue. A good PM should be able to get someone out to look at the system within a couple of working days.
