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

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

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  1. beachgurl

    beachgurl Well-Known Member

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    Just over 8 years. The positive gearing used to assist with borrowing capacity but now that most lender assess at P&I at a loaded rate they are a bit of a hindrance.

    I think just suffering from a sheriff hangover and in a few months I'll forget all about it and hold on for a while longer
     
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  2. See Change

    See Change Well-Known Member

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    that's why you need a good PM , though sometimes can take a while to find one

    When you've got a few , an occasional late rent , vacancy isn't a problem .

    1-2 nice expensive IP's and a vacancy IS a problem .

    Cliff
     
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  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    You have a point there.
     
  4. Biz

    Biz Well-Known Member

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    Im talking about the end goal not building the portfolio. Not interested in tenant dramas now let alone when retired.
     
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  5. Chilliblue

    Chilliblue Well-Known Member

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    So true.

    And don't you hate it when people around you complain about the cost of their insurance or council rates and you are quietly calculating the number of multiple properties that you have to pay for.
     
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  6. Perthguy

    Perthguy Well-Known Member

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    My tenant in Melbourne didn't pay his rent. I followed up. He insisted it had been paid. I insisted it had not been received. It turns out the rent had been paid... to the previous landlord. lol :rolleyes:
     
  7. EN710

    EN710 Well-Known Member

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    I only have some, but I think no matter how few or how many I'd still complain :confused:

    Pet peeve is when someone said something along the line of, landlord is rich and always bully tenant and they are responsible for everyone else to be poor renting tenant.

    Say whaaaattt?? Want to see the amount of mortgage I pay???
     
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  8. Azazel

    Azazel Well-Known Member

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    Sorry to hear your experience, hope it works out.
    I think there's more of this happening in that area than you hear about.
     
  9. WestOz

    WestOz Well-Known Member

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    Sorry to hear your bad luck.

    Touch wood, I've been lucky so far, held off to see them through christmas and provided a form 20 (rent increase) on 7th Nov of $60pw (effective 12th jan).

    I actually stuffed up counting the weeks, they pay fortnightly & I thought it would fit into their 12th Jan payment, turns out last week it was due, 5th Jan 2 weeks rent goes in, including an extra $60 for the 2nd (this) week.

    I took this tenant on with purchase 1st July, had a shocking report/ledger with agency, courts etc, I've kept her on Periodic just incase.
    As a SM I've not had a single issue with her.
     
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  10. dabbler

    dabbler Well-Known Member

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    I thought this was going to be about how a lot of PM's only collect part of Decembers rent, so you end up short.

    Yeah, you have to expect some drama, and it is often annoying, but people not paying, well why would you think having a home and food is more important than whatever else they spent the money on ?

    regarding the mum, she has a mooch, not a boyfriend, it would seem.
     
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  11. mini2

    mini2 Well-Known Member

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    That and some tenants think they're being hard done by i.e. tenancy regulations favoured the landlords. I heard this diatrabe the other day and I was like you wanna listen to my recent fiasco with my lovely tenant who worked the system and took 2 months to evict them for arrears?

    If the rules really favoured the landlords, I should've been able to kick that tenant out on the drop of a hat! Then all these talks about giving tenants more rights like they do over in certain parts of Europe where home ownership is low. Get outta here!
     
  12. EN710

    EN710 Well-Known Member

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    If it's just delayed rent by PM then I wouldn't mind that much. Income delayed is not income not received.

    Place to live -- necessities
    Presents and holiday -- nice to have

    I can understand if it's medical issues, doesn't mean I'm going to cope unpaid rental it just because. Some communications would be great, not just AWOL :oops:
     
  13. See Change

    See Change Well-Known Member

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    At any stage of property investing you can have problems with tenants ........

    If you don't want problems with tenants , residential , industrial or commercial , no buy property ....

    We've had / have many properties . occasional minor issues , but nothing that hasn't been fixable with minimal trouble . Don't think we've had to go to any tribunals .

    Cliff
     
  14. Charlotte30

    Charlotte30 Well-Known Member

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    I agree with Cliff. Property is not set and forget, it requires monitoring. It is about dealing with issues and standing on them early.

    Charlotte30
     
  15. Biz

    Biz Well-Known Member

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    So when retired you would rather deal with 10x sets of tenants instead of 5x if the net return is the same? Personally, something I have learnt in business and investing - The more you remove the human element the easier it gets.
     
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  16. TMNT

    TMNT Well-Known Member

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    i hear ya! although over christmas my rents seem to be fairly ok, I have tenants in difficult areas on a permanennt catch up plan, until the next problem arises, and if the problem is big, then ill lose a month to 2 months rent before they decide they suddenly become not required to pay, leave the place, sometimes trash it, and then I pick up the pieces,

    and yes sometimes I wonder if its worth it!
     
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  17. TMNT

    TMNT Well-Known Member

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    absolutely, I have an IP that I bought and renoed at like 11% yield, (not mining) and its cashflow negative because of the vacancies and damage I have to deal with,
     
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  18. See Change

    See Change Well-Known Member

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    The issue is the return isn't the same .... That's the whole point .

    The block of four units we bought in Hobart for 220 were returning around 440 when we bought them and are now returning over 800 / week . Due to our positive experience with that block , we've just bought two other similar properties ( not in Hobart ) , one title , multiple units , so no issues with strata etc which are returning around 8 % .

    The combined purchase price of those three properties ( one in 2002 and two in last month ) is less than what we got for a 2 bed unit unit we sold in Mosman at the end of last year HOWEVER , the rental return is around 2 1/2 times greater ...

    Those sort of numbers are going to enable us to either retire earlier or retire with a higher income . That's the real life reality .


    Cliff
     
  19. Biz

    Biz Well-Known Member

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    Again, not debating that with regards to building the portfolio but when it is time to kick back most people want less headaches not more. More tenants equals more headaches. One day when it's time to pull the pin if you are happy dealing with it all go for your life.
     
  20. See Change

    See Change Well-Known Member

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    In this thread , at no point have I raised the use of buying Cheapies during the building phase .

    You missed my point . higher return gives higher income / earlier retirement . It's Not a matter of getting the same return from both options .

    We let the PM deal " with it " so it's not a headache .

    How many IP's , in particular, how many properties in cheap areas have you had ? There are area's and properties I would avoid but it sounds like me you're making broad generalisations and have minimal or no experience in what you're giving an opinion on .

    Personal observation of holding well selected properties in cheap areas for around 15 years is it's not a drama . Our nice properties have more demanding tenants because they expect everything perfect ...

    We have passed on properties in cheap areas which I know other forumites have bought and had problems with , but they were crappy properties which were only going to attract crappy tenants .

    Having seen several peoples retirement plans F...ed up by the GFC reaking havoc on their share portfolio's , I have no problems with a residential portfolio going into retirement .

    Cliff