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

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

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 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 Taking them to court, again. Expecting at least a month vacant after this

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!

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.

 

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.

 

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.

 

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

I don't understand their priority. When I'm renting, rental payment came out first. I eat less if I need to Since when presents and party came before a roof on top of your head?

 

+1

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

 

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.

 

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.

 

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.

 

Hi @EN710

Does your landlord insurance cover rental default?

 

Hence why I have property manager
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!)

 

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!

 

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.

 

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...

 

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

 

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.

 

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)

 

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.

 

@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.

 

That is why they never get ahead of themselves.

 

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.