VIC Salvation Army assisting tenants

Hi members,

I’d like to understand how this works… and what I should do..

I had applied [as landlord] to consumer affairs and vcat for termination+possession orders to end a fixed tenancy --- on the grounds of “owner’s family moving in”. Currently awaiting the hearing date from vcat.

The tenants were notified of my application.

Tenants [who are fully on centrelink benefits] rang up my property manager saying that they would challenge this on the grounds of “severe hardship” and they were confident that the tribunal would rule in their favour. Besides, they knew [from my ex-PM who was also their good friend] that landlord has many properties thus it was not “reasonable” or “proportionate” that landlord’s family would want to move into that crappy house.

These tenants apparently know the loopholes of the rulings and are playing them against us.

Few days ago, my PM unexpectedly received $1500 from the Salvation Army to pay rent arrears for this tenant.

We do not know how Salvation Army could get involved in this ?
Would this adversely affect my application to evict the tenants ?
What should I do to convince the tribunal to rule in my favour ?

Kindly offer your opinion and guidance. Thank you in advance.

 

They have proven hardship sad they have gone to a charity for financial support, hard to disprove that.

If they're no longer in arrears (if that's the real reason that you're seeking an order for possession) then the tribunal will side with the tenant.

If family don't move in, will you be held in contempt of court?

 

Yes Salvos, and anyone really, are allowed to give you money if they want to.

Probably.

Wasn't your application for termination sketchy anyway?

And are you honestly complaining about getting rent money in? Surely its time to get some perspective.

 

Long story. This tenant is bad. They are infamous -- known within the industry -- had been evicted by many other landlords. I work overseas, and I was deceived by my ex-PM [who is also their good friend] into taking them in. Due to the covid rulings, I am stuck with them.

Tenants are still in arrears. Since day 1 they had been cleverly bypassing the no-rent-breach by paying small tokens rent on every 15th day.
When my PM met them in person, they gleefully told her that they had spent all their money on shoppings. However, they said they would claim "severe hardship" at the tribunal and lament that "they had nowhere to go".
My PM had been chasing rent and issuing breaches for late rent, clutter, subletting, and had on multiple occasions contacted the consumer affairs, but no progress from there. It was only after landlord personally applied on the grounds of "family moving in" that my case was promptly referred to vcat.

I thought I was finally getting closer to evicting this tenants. Suddenly Salvation Army appeared.

My wife is moving in. I had already liaised with the various tradies to spruce up the property.

 

@thatbum , Would you be happy with a one-time $1500 rent payment jolly well knowing that this tenant is abusing the covid rulings and exploiting the sympathy of Salvation Army ?

 

Yes I would. Because you know, despite your odd spin on things, I would be getting money in my account. I've been in this situation too - $1,500 from St Vinnies in my case. Happy to have the money and let the tenant stay longer.

"Abusing covid rulings" also sounds like your weird spin on "using their legal entitlements", which is something you should have been doing this whole time - but you decided on some weird pseudo-legal approach to termination instead.

Honestly by this point I have real trouble believing your version of events at all. Between your obvious emotional investment, and the fact that you get all your information 2nd and third hand from your PM - I reckon it's probably even odds that the tenants are just a normal family trying to get by.

Ever thought your PM might just be telling you what they think you want to hear?

 

Thank you for your perspective on this.

 

Thanks Scott. My wife would move in first, followed by the rest of the family when we settle on the kids' school.

 

is this property in Melbourne? Given the higher than usual vacancy rate the tenant should be able to find another place. Their hardship could be the moving costs - when at the tribunal why don’t you offer them the money the Salvation Army paid to help with the moving costs; a win/win

 

If your family is living overseas, how is your wife going to get back - given the current COVID restrictions on international flights to Australia?

 

I have followed this in the other thread, and the two shouldn't be mixed !

I donate to the Salvo's, they are one of very few charities that guarantee most of your donation (over 90%) gets to those in need (V's "movember" at 40% odd !).
The tenant only has to show up a few times to obtain assistance (be it vouchers, food or rent. Plenty of people take advantage of those willing to help).

Paid up rent or not it is irrelevant, your reason for termination is for your family moving into THIS property, owning other property may be a consideration, but in reality I don't see any other matters/issue's counting !

 

Thanks Snoopy.
I did offer tenant the $1500 salvation army money + written off the rent arrears + free rent till vacate date. However, they said they had "nowhere to go" so they would stay put forever.

Property is in Melbourne. Market rental rate is $400-420/week for the 3-bedder house on 650sq. metres land. Out of kindness, I had foolishly agreed to $200/week at the start of the lease, and even had my parents bring over my kids' clothings & toys for the baby. They were friendly with my parents, but observed that they drove "nice car" , then asked if my family had any more nice stuffs to give them. My parents warned me that they were greedy people. At that time, I didn't think that way about them. Even though I still had huge mortgage to pay, I felt that though I was overseas, I could still help my fellow needy mates in some ways.

Plainly gullible and foolish. That's me.
It really feels ****** to be taken for a ride for the long haul.

 

What the Salvation Army has provided to them and their position and what they have said really isn’t within your scope of knowledge, still too emotionally invested.

During the early COVID days there was $2000 government money for urgent rent payments to prevent evictions

At least the tenant has gone out and sought help to pay this (they could have done nothing) if your termination is based on family moving back in then rent payments or lack of are not what the termination was for

 

Hi Joynz, we miss home. We have not been able to return to Melbourne to visit my parents for more than one year. My wife would return first, and make arrangements for the kids to join her. I would have to work overseas for a few more years. She is waiting to get herself vaccinated. Thereafter, a 14-day quarantine... or whatever necessary measures stipulated by the authorities.

 

Thanks Stoffo. In my application with vcat, I sought on the grounds of owner's family moving in. Which is genuine. Honestly, I don't even want their rent. I just want them out.

I had in my little ways helped other tenants who were genuinely in need. One pregnant tenant who had lost income due to difficult pregnancy --- I offered her three months free rent, then enlisted my friend's help to help her moving to another cheaper rental. I have another long term tenant -- a very lovable elderly lady who loves gardening --- I had offered very cheap rent, never increased rent for the past 9 years, and I intend to let her live in my property for as long as she wishes. Whenever PMs highlight to me that the tenant is undergoing some financial difficulty, I would try my best to offer some form of assistance.

However, there are really some people who are not genuinely in need, but are out to exploit other people's kindness.

 

Welcome to the Victoriastan Peoples State.
It is now a communist state. The Bill Of rights is null and void, and no one even remembers what a constitution is.
Private Property is no longer. Other than what you need, nothing else yee shall have.
You may still have ownership, but it is held in trust for the greater beneficience of the community.
Because Victoriastan is all about community.
And and no bedroom will be empty by 2030, for the kids. They are our future.

 

Thanks Jared for your perspective.

 

Thanks Piston. I am hoping for some light at the end of the tunnel.

 

Salvos have given me money to pay bills.
I was embarrassed at the time.
Now in hindsight,I am not ashamed, I am thankful!

 

My take on this whole scenario is that you are way too emotionally invested. You appear to be a genuinely nice person, who has been taken advantage of. Your biggest mistake is that you have not approached investing as a business. It's all hindsight now, but you should never have allowed this tenant to move in at half the rent in the first place, and your ex PM clearly knew you were a soft touch.

Moving forward, try to take the emotion out of this and deal with facts only. Stop being 'nice', and telling them you will let them off with not paying. They should be made to pay, especially if they were on centrelink, as they would have gotten additional payments through COVID.

The fact that the Salvation Army has stepped up to give some money is irrelevant to your VCAT hearing. That money should go towards unpaid rent.

Not knowing what other investments you have, I would have thought that irrelevant also to which property your wife is moving into. Your other properties would have a fixed term lease I presume.

These current tenants had a fixed lease, which has ended, and your wife is moving back to Australia to take residence in this property. You can put it to VCAT (if it's at all considered) that prior to these tenants moving in, you had planned for this home to be your PPOR and your whole family will eventually be moving back to Australia. Your wife moving in is the first step towards bringing the family home.

Now, I'm not sure if your current PM has the right stuff to get all this across to the VCAT member, so it may be worth your while to consult another professional in this matter.