QLD Selling my IP, the tenant doesn't want to leave, what to do?

Discussion in 'Property Management' started by Jat, 22nd Dec, 2018.

Join Australia's most dynamic and respected property investment community
  1. Jat

    Jat Active Member

    Joined:
    6th Jul, 2015
    Posts:
    32
    Location:
    Sydney
    Hi All, I'm selling a property in Logan. I got an offer, they got the finance approval and we are all ready for settlement. But the tenant doesn't want to leave.

    He stopped paying rent and is not possible to communicate with him. He keeps changing his phone number and not replying emails. The only option is for the PM to knock at the door and some times he can reach him at home.
    As you can imagine the tenant track record is very poor so it won't be easy for him to get a new house to live.

    I already offered him some money to assist him leaving, he didn't even asked how much or anything, he doesn't look to be interested in that.

    The 60 days notice to vacate the property is due soon for him to leave but I don't see that happening. I got the feeling that he will try to stay until is kick out the property (after tribunal and all that) which will definitely take some time and most likely will make the sell to fail.

    We are planning to offer him paying for the move and also tell him that we'll take care of the clutter he leaves behind (that's a lot of clutter, trust me).

    Did anyone had a similar situation, or any recommendation to solve this issue?
     
    Tom Rivera likes this.
  2. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,478
    Location:
    Qld
    Does the tenant have a current lease? If so, you can’t force him to leave. All you can do is to issue the appropriate notice for him to leave at the end of his lease.

    I am assuming he doesn’t, as you say notice to leave has been issued. Now you must wait until the notice expires then go through the tribunal to force eviction. Unfortunately for you, if the tenant is aware of processes, this may take some time.

    I hope you didn’t sign a contract for vacant possession. If so, the buyer probably will not settle while the property is occupied (I certainly wouldn’t). And will probably be able to rescind the contract. Then, just to add another kick, as the contract went unconditional, you will probably have to pay the RE commission as most agreements say the commission is due when the contract goes unconditional, not on settlement. (Hint for future: change RE contract to commission on settlement.)

    The only way to get the tenant to leave before legally necessary is to offer him money. And as he is in the box seat, it may have to be a substantial amount.

    When my friend returned to his home city unexpectedly, it cost him $10,000 to get his tenant to agree to leave early. Friend figured it was worth it, to him, to avoid the hassle of finding a short term rental and paying for two full-house moves.
    Marg
     
  3. Angel

    Angel Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    3,453
    Location:
    Paradise, Brisbane
    What has your property manager and the RE agent said? What about your solicitor?
     
    Michael Mitchell likes this.
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    12,836
    Location:
    Sydney or NSW or Australia
    Breach and seek orders to vacate

    Notices can still be served by mail, delivered to the address etc.
     
    George Poullos and Zoolander like this.
  5. Jat

    Jat Active Member

    Joined:
    6th Jul, 2015
    Posts:
    32
    Location:
    Sydney
    The notices have been served. But to unfortunately there is not a good communication channel (he keeps changing his phone number and never answers or replies) that could help us to negotiate some terms or understand what the tenant wants if there is anything.
     
  6. Jat

    Jat Active Member

    Joined:
    6th Jul, 2015
    Posts:
    32
    Location:
    Sydney
    They all agree in finding a way to help the tenant to move out. Giving him some money, paying for the move, removing whatever he lefts behind. No news from the tenant so far.
     
  7. Jat

    Jat Active Member

    Joined:
    6th Jul, 2015
    Posts:
    32
    Location:
    Sydney
    Thanks Marg4000, good point about the contract with the RE, I checked and I have to pay if settlement occurs. Offering him money is also an option for us, we are not sure if that's what he is after since there is no much reply from his end.
     
  8. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,313
    Location:
    Melbourne
    Have had this before,

    It sux big time.

    Ive never offered money but im a stubborn pos

    My suggestion is that if its not going to mean the falling over of the sale, to issue immediate breach/eviction notices and pray to god the tribunal doesnt doesnt allow an extension with a payment plan.
    The new owners may be happy to settle if eviction prcoess is well on the way

    Good luck, and i know you are feeling you are in a lose lose situation
     
    Dean Collins likes this.
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    12,836
    Location:
    Sydney or NSW or Australia
    The agent should be capable of running the eviction through the tribunal. The tenant doesn't need to respond or attend the tribunal hearing. Just keep on your agent, ensure that they can get the order from the tribunal and arrange for the sheriff to remove the tenant & possessions on the appointed day.
     
  10. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,478
    Location:
    Qld
    You must be joking!

    Once settlement occurs, the dodgy tenant becomes the new owner’s problem. I can’t imagine anyone wanting to take on that nightmare unless desperate for the property.
    Marg
     
    Ben_j, ellejay and wylie like this.
  11. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,313
    Location:
    Melbourne
    No.
    Ive settled on a property witha tenant like that.
    I wanted it vacant, but the eviction process was almost complete.
    I got it for a bargain so i was happy to proceed.

    But i do admit, i got a bit lucky as the property wasnt left in a mess that im used to

    You can only ask!
     
    Marg4000 and Michael Mitchell like this.
  12. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,652
    Location:
    Sid en e - olympic city
    If they have or are making out that they have dissapeared....see if you can take possession......there may be provisions.
     
  13. Jat

    Jat Active Member

    Joined:
    6th Jul, 2015
    Posts:
    32
    Location:
    Sydney
    Thank you all for your messages. So far the tenant said is still looking for a new place and if we can help with the clutter. We'll pay for a small container for him to through some things out. I'll let you know the outcome if that can help anyone in the future.
     
    Gockie likes this.
  14. Andrew Hancock

    Andrew Hancock Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    771
    Location:
    Australia
    This all comes down to the contract of sale vs. the tenancy agreement and the handling of both at the same time.

    If he refuses to vacate, you go to court and obtain a warrant of possession and if he refuses to leave you get the bailiff. These things happen. However, if the settlement of the property is dependent on vacant possession then as a buyer, I wouldn't settle either.

    I don't feel you've clarified your position and contract terms enough to provide any meaningful advice for the specific situation but at least it appears he's planning on leaving now.
     
    Terry_w likes this.
  15. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,318
    Location:
    South East Queensland
    Hey @Jat !
    _____________________________________________

    The issue centers around needing vacant possession ASAP when the tenant wont keep communication channels open and isn't responding to any normal incentives (i.e. throwing money at them...!).

    Unfortunately the official forced eviction (i.e. warrant of possession through tribunal) can take months. Although this process is progressing, it's not a practical solution here- too long.
     
    Last edited by a moderator: 11th Jan, 2019