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[RANT] It's time of the year again, late payments :(

Discussion in 'Property Management' started by EN710, 13th Jan, 2016.

  1. EN710

    EN710 Well-Known Member

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    Just a bit annoyed, I always got no rental around Xmas or after :oops:

    Have two IPs and both of the tenants are not paying rent after Christmas. Both of them have always been late and been put to court several time. Total arrears is about 20+ days now.

    NSW IP - single mother who just have new baby + boyfriend who's not on lease. Always late but usually try to catch up. The last time she's late, baby got bronchitis. I said ok, put them to court and get them to commit to payment plan. Committed 2 weeks, then come Christmas, no rent paid! PM is doing a court release to get them out. No one wants to boot a mother with a newborn out but I can't run a charity either :oops: Expecting a month or so long vacancy after this.

    QLD IP Logan area - been a problem since the beginning, but rental market is slow. They used to catch up on rent and again, after Xmas, no news :oops: Taking them to court, again. Expecting at least a month vacant after this :oops:

    Really put me off buying in low socio-economic area. Not to mention 3rd IP settlement is next week, so more out of pocket. Then in 3 months, settlement for PPOR land, then build. Argh! :confused:

    Oh well.

    Rant over. At least the PMs are handling the issues, I still have my salaried income, and actually can afford to buy another IP and a second PPOR. Can only be thankful that I'm in that position.
     
    Last edited: 13th Jan, 2016
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  2. Kinnon Bell

    Kinnon Bell Finance Broker

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    And this is a good demonstration of why a buffer is important (if you're not able to cover X vacant properties with your wage) as it can happen that every property you own can be vacant at the one time.

    Hopefully it's sorted nice and quickly for you.
     
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  3. beachgurl

    beachgurl Well-Known Member

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    I hear you :( for 3 years running I've had a sheriff visit in the new year. A few years back I had a tenant in arrears over Christmas with many excuses as to why he couldn't pay. I drove past the house on Xmas day to see the empty boxes for kids' gifts so expensive I understand why they were a month behind.
     
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  4. EN710

    EN710 Well-Known Member

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    I have buffer alright, just don't like seeing them dwindling. I pains me :( prefer my buffer to grow

    :oops:

    I don't understand their priority. When I'm renting, rental payment came out first. I eat less if I need to :oops: Since when presents and party came before a roof on top of your head?
     
    Last edited: 13th Jan, 2016
  5. mini2

    mini2 Well-Known Member

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    +1

    They seem to put toys, pitbull/bulldog, Unit/Metal Mulisha stickers purchase higher up their priorities.
     
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  6. HUGH72

    HUGH72 Well-Known Member

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    I hear you, seems to always happen this time of year and its not only in low socioeconomic areas either. I was going to start a thread 'when good tenants turn bad' but its often like this at Christmas and early January.
     
    Last edited: 13th Jan, 2016
  7. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    This is why I hate Christmas people just spend money they don't have and start the new year in shambles. Even my best tenant who is normally a month in advance slipped up.
     
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  8. neK

    neK Well-Known Member

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    Don't own any properties in low socio-economic areas.... but reading this, i really can't see how I would be able to handle the situation without annoying my wife. I like to rant and then spend time getting things done... my wife hates it when I spend time too much time on property - stuff like this would suck up my time like crazy.
     
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  9. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @EN710

    Does your landlord insurance cover rental default?
     
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  10. EN710

    EN710 Well-Known Member

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    Hence why I have property manager o_O
    Happened once with NSW property where I'm ready to punch everyone involved and I was very stressed. Learn to be more detached now, but it's still annoying and painful to my pocket.

    EBM - so yes (I think!)
     
  11. Biz

    Biz Well-Known Member

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    Really puts you off owning a lot of IP's eh? That is why my long term goal is to have only a couple of IP's paid off and the rest of the cash in my bank account.

    10-20 IP's. NO THANK YOU!
     
  12. beachgurl

    beachgurl Well-Known Member

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    Yep. I'm looking to offload my cheapies soon. Getting 4 or 5 phone calls in a day from different PMs can do your head in a bit.
     
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  13. EN710

    EN710 Well-Known Member

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    Yes. After problems with the first one (and now second one too!) I just think, buy in better place! Less headaches!
    Target IP # was about 7-8 each around $300K, but now I think I can deal with just 5 and happy with it. Until I itch for more...
     
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  14. EN710

    EN710 Well-Known Member

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    How long have you own the cheapies @beachgurl? I have this urge to sell the NSW one, owned for about 2 years :confused: If I sell now it'll be break even-ish, though I might be able to release approx. 40K if it sells well.
     
  15. mini2

    mini2 Well-Known Member

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    I'm starting to think these so-called CF+ cheapies aren't actually CF+ afterall if you put a cost against time consumed in managing them.
     
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  16. neK

    neK Well-Known Member

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    Won't help... I'll just be like you stated here... except worse.

    The dialogue would go along the lines of:

    Me: The F-ing tenant is behind again, <beep> <beep>
    Wife: Be quiet, your children are listening
    Kid: F$!@ heehee
    Wife: See what you did!
    Wife: Just sell the damn thing! All i hear is you complaining about property this property that
    Me: But its for our future planning
    <More yelling>

    Property manager might "try" and chase up, but it won't stop me from venting about the fact the tenants aren't paying.
    Then when the property manager doesn't do their job, i get worked up again. Then the above conversion is repeated, except sub out the first sentence for "The F-ing PM has no idea what they are doing, <beep> <beep>"

    I haven't guessed it, I am a control freak. I need to know where everything is at each point in time :)

    Anyway, this highlights why you should take quality over quantity (for me anyway) - (like this thread It's the portfolio $$$ that counts not the number of properties)
     
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  17. Chilliblue

    Chilliblue Well-Known Member

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    LOL @neK

    My other clearly stated at the beginning that he wanted no part of the daily management issues and has no idea of what goes on.


     
  18. EN710

    EN710 Well-Known Member

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    @neK if I complained too much, he will get worried about me. Then would start asking the questions of the like of - what went wrong, can it be prevented next time, what other actions can we take to minimise risk, what could be done better etc and I'll ended up doing the you're-not-helping-me-feeling-better face. :confused:
     
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  19. Eric Wu

    Eric Wu Mortgage Broker Business Member

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    That is why they never get ahead of themselves.
     
  20. mini2

    mini2 Well-Known Member

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    Bit of a Catch 22 - you need them not to be able to get ahead of themselves to stay in the rental pool but you also need them to be able to get ahead of themselves a little just to afford the rent.
     
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