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Property (Self) Management Disaster

Discussion in 'Property Management' started by Melbpositivegeared, 2nd Sep, 2016.

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  1. Melbpositivegeared

    Melbpositivegeared Well-Known Member

    Joined:
    23rd Jan, 2016
    Posts:
    72
    Location:
    Melbourne
    Hey guys,
    I'm feeling stuck and not sure exactly what to do here. I've messed up.... AND have a problem tenant I don't know how to deal with.

    I lease out 2 rooms in a unit separately in a VIC property.

    I have signed my tenants up on standard leases, taken bond (But not lodged this as I found out I should have had them on rooming house leases - Have the money sitting there just need to get that done) - I know this should have been done and I'm rectifying it now.

    My mobile has had some issues and was playing up for a few weeks. I got a new number and messaged my tenants to let them know, only to find out they had been trying to contact me about some issues in the house for a week.

    One tenant was particularly upset as there had been a leak in the roof - All fixed now (Almost 2 weeks since they tried to contact me about it - Immediately after I found out).

    There was also a concern around no smoke detectors (His flatmate had burnt their dinner and taken them down, pinched the batteries and never put them back up - then moved out). This was 2 months ago. This tenant offered to buy more batteries and I said said great, take it off your rent and assumed it was sorted. Now they are saying the house is a death trap because the smoke detectors still have no batteries (I immediately sent someone around to fix this)

    There have been complaints from this tenant since he moved in. Bugs, possums, dog fur (From the flatmates dog), curtains starting to "discolour" (They are 2 years old), a small hole in the kitchen cabinet, the flatmates vacuum cleaner not working well (This one isn't on me!), the heater takes a long time to warm up - You name it. It's a 70s built house, but freshly renovated.

    The tenant was clearly upset and was also complaining about the price of rent. I told him not to worry, if he wants to break the lease I will allow it, and that all I ask is 4 weeks notice and for this not to be over the Nov-Jan Christmas break. (Their lease ends in Feb) I assured him he was welcome to stay - However if he was really unhappy I would accommodate this and provide a strong reference.

    He got really upset, told me not to put these kinds of conditions on him and that he will offer just 1 weeks notice as the house is a death trap. He said that he is looking now, however he won't give his notice until he finds something.

    He has stopped paying rent. The guy that fixed the roof said that there is junk right through the lounge room (Just lots of belongings). He is not responding to texts or phone calls.

    I've searched for my copy of his lease and I can't find it anywhere (All I can find is what I emailed him to sign). I know it's somewhere but its not helping this case.

    What are my rights? What can I do?

    I have found a place I will be passing it across to in 2 months, due to some major car dramas, no rent and a few other large ticket expenses that have all come at the same time, I'm not in a position to pass this across to them immediatelty
     
  2. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    1,046
    Location:
    Brisbane
    I too stuffed up when I was self managing our first IP.

    I found a professional PM who was prepared to listen to my situation and who agreed to bail me out. That was 16 years ago and that IP is still being managed by them today (plus they manage four others).

    That was the first and last time I self managed!!!
     
    Elives likes this.
  3. hobo

    hobo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    425
    Location:
    FNQ
    It sounds like it would be a better use of your resources (time AND money) to pass this to a professional PM right now.

    I think in the long run this will provide you the better outcome.
     
    Dean Collins and Cadbury99 like this.
  4. SeafordSunshine

    SeafordSunshine Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    376
    Location:
    Sydney
    Dear MelbPositiveGear,
    I don't think you are going to like what I have to say.
    Stop Making Excuses about your phone and car and personal stuff!
    Act like a professional!
    So, If you are still listening, get your smoke detector repaired by an electrician, before your tenant starts a fire and you have to pay their expenses.
    Suck up the cost of 'Passing it across' before your tenants take you to the cleaners:eek:
    If you want to manage yourself, do so, in a few years time, once you have learnt the intricacies of Victorian Tenancy laws.
    Here ends the lesson!
    Good Luck, and I hope this helps
     
    ramblin72, Perthguy, Pumpkin and 4 others like this.
  5. WallyB66

    WallyB66 Well-Known Member

    Joined:
    5th Dec, 2015
    Posts:
    76
    Location:
    QLD
    Hi- advantages of a PM are numerous- primarily keeping a professional buffer between you and tenants, keeping up with legislation etc. Also some tennants can b v high maintenance- if complaints are real then I fix - if they aren't then they may be happier elsewhere..
     
    Pumpkin and kierank like this.
  6. chibs

    chibs Active Member

    Joined:
    16th Jul, 2015
    Posts:
    44
    Location:
    WA
    Can you send a breach notice to evict immediately? He give you a very good reason to do so if he misses paying his rent.
     
  7. SteveOption

    SteveOption New Member

    Joined:
    8th Oct, 2016
    Posts:
    2
    Location:
    Sydney
    Sounds like this tenant simple strategy is to complain, complain and complain- leveraging small issues then that somehow justifies not paying rent. So he lives for free. Evict immediately.
     
    Tony Fleming and Luke T like this.
  8. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

    Joined:
    1st Jul, 2015
    Posts:
    230
    Location:
    Australia
    The only advice you should be following is to engage a professional property manager immediately. Be completely transparent on the detail to give them the best chance to deal with this effectively and promptly.

    It's been said 1000 times before - as a property investor there is just no point in trying to save yourself $30, $40, $50 a week (before tax!) and assume the risk of ending up in a situation like this. They're all great tenants....until they're not! And it can happen at any time, even if they've been great tenants for years - job loss, divorce, health problems, etc. are all common triggers for a good tenancy to go downhill fast. If the investor doesn't have the knowledge, expertise, experience and time to deal with it, all the money saved in PM flows quickly out the door along with a lot more.

    I wish you all the best. I know a fantastic property manager in South East Melbourne who manages for me down there and I can put you in touch if it's within their area. Send me an email for the details and let me know where your property is if you like. Good luck!

    - Andrew
     
  9. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    546
    Location:
    Sydney
    Try and get a PM to help rectify this as soon as possible. You don't want to be dealing with tribunal and trying to get a new tenant leading into December.
     
  10. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    902
    Location:
    Melbourne
    @Melbpositivegeared

    Please refer:
    Sharing in a rooming house - Consumer Affairs Victoria

    Specifically, for a rooming house situation in Vic for your case,

    - bond cannot exceed 2 weeks rent. If you have asked for or taken more, they can go to VCAT, and you may be fined.

    - tenants are required to give 2 days notice to leave (yes, that's TWO days). By asking for more, unless a written agreement exists, you may be fined.

    The Y-man
     
  11. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,716
    Location:
    Brisbane..
    Be care full with the bond lodgement there is a timeframe to have the bond set,otherwise they will fine you,also the few who self manage for a long time that i know act on any faults within the rental within 24 hours,and return any tex messages within 5 minutes
    just to keep everyone happy..
     
    Perthguy likes this.