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Shonky tenants left with 7 weeks outstanding rent

Discussion in 'Property Management' started by Satya, 22nd Jul, 2016.

  1. Satya

    Satya Active Member

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    Tenants renting for past 1 year left with 7 weeks outstanding rent and property damages.

    The tenant hangs up when Realestate agent calls them. They don't have their new address info but do have their driving license info. It seems their intention is not to pay the remaining rent and just run away.

    The property is being managed by licensed realestate agent and he tells me my landlord insurance can cover the outstanding rent and property damages. Property damages include scratched flooring, broken door, door handles, tiles on the floor, wall paint scratches etc.

    Never been through this type of situation as I am still new to IP world.

    Seeking guidance here from some one experienced who may have been through similar situation.
     
    Last edited: 22nd Jul, 2016
  2. sanj

    sanj Well-Known Member

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    first step is to read your insurance PGSinsurance PDS
     
  3. Perthguy

    Perthguy Well-Known Member

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    What is happening with the bond?

    For the outstanding rent and property damage, you will either need to go to the tribunal then claim insurance or claim insurance direct. It will depend on your policy. And if the tribunal is required, that should be done by your real estate person.
     
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  4. Satya

    Satya Active Member

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  5. Satya

    Satya Active Member

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    Perthguy@ The bond is still with real estate and only covers 4 weeks rent. The property damage repair bill will be significant and bond won't be adequate to cover damages.

    Realestate agent is trying to deal with the TerriScheer insurance direct haven't gone to tribunal yet. Just read few property claim reviews for TerriScheer insurance online and the review is not looking great. Seems many people being turned down for their claims.
     
  6. Perthguy

    Perthguy Well-Known Member

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    You will have to go to the tribunal and seek to retain the bond to cover damages and make a claim for outstanding rent. It's not automatic and you may not get everything you claim for. Good luck with the claim. I haven't had to make a claim so I don't know the process.
     
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  7. Satya

    Satya Active Member

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    Thanks for your advice. Will update my story here once I go through all these hectic processes.
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    No. The bond is with the Rental Bond Board - the agent would be in breach of the Residential Tenancy Act if they were holding it.
     
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  9. Satya

    Satya Active Member

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    Thanks Scott, that could be right. Need to check with Agent if and how we can claim the bond.
     
  10. JacM

    JacM VIC Buyer's Agent Business Member

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    Make sure the agent gets onto claiming the bond quickly as there is a timelimit.

    Then call your insurer.
     
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  11. MRTLR1000

    MRTLR1000 Active Member

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    can i help in anyway?..im an assessor that does malicious claims for Terry Sheer....can tell u exactly what u will get and need to do...
     
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  12. Satya

    Satya Active Member

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    Thanks @MRTLR1000 appreciate your help. The tenant has left following things in broken state:
    1. 1 shattered tile in Balcony
    2. Dirty paints and peels/scratches on walls
    3. Broken door needing whole door replacement.
    4. Broken door knobs in two doors
    5. Broken Kitchen drawer handles
    6. Damage in flooring and wall skirtings
    7. Most importantly 7.5 weeks rent

    I hope you can tell me what could be claimed and how much for each item. The agent has acquired a quote from his handy man and their quotes looks pretty reasonable. I have told them to go for urgent repairs as the new tenant is moving in on Monday, so the place is in livable condition.

    The real estate agent also told me that he is in process of submitting all claim documents to the TerryScheer insurance. Hopefully the claims will be approved.

    Appreciate your help.
     
  13. Xenia

    Xenia Adelaide Property Manager Business Member

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    Hi Satya
    I know it's a difficult thing but it's a routine procedure for a good real estate agency.

    There is nothing you said that is out of the ordinary for defaulting /absconding tenants.
     
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  14. MRTLR1000

    MRTLR1000 Active Member

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    1. 1 shattered tile in Balcony -
    2. Dirty paints and peels/scratches on walls
    3. Broken door needing whole door replacement.
    4. Broken door knobs in two doors
    5. Broken Kitchen drawer handles
    6. Damage in flooring and wall skirting
    7. Most importantly 7.5 weeks rent

    looks as if shld be all ok. they will only replace the one tile. U need to check if it is from movement to the floor and water damage and then if it just appears to be stood on.dirty paints? peeling paint will be wear and tear , damage to flooring, if its scratches from moving furniture nope..and if they do, it will be sanded and only to the one room. which you cant do, so you would have to get all other rooms done at yr expenses. rent, well that all depends. u need copy of lease and tenancy application, entry and periodic inspections as well as last inspection report. ledger of rent, and any copies of notice letters, and copy of tribunal bond receipt. then go and clean up as they dont cover that, that all gets taken out of bond, whats left plus yr excess then comes off yr rent claim...
    hard to tell without pics , but thats fine....seems most will be ok...
     
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  15. willair

    willair Well-Known Member Premium Member

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    Depending on what landlord insurance you have cover with,most cover for 16 weeks with a lease in place,or 2 week if it's week by week rental short term,just ring up the insurance company and get a claim number and let someone else worry about the problem..imho..
     
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  16. Satya

    Satya Active Member

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    Thanks @MRTLR1000 appreciate it.
     
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  17. Satya

    Satya Active Member

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    O
    OK My property agent lodged claim few weeks ago for me and just told me today that Terri Scheer is not going approve our claim as the tenant had two weeks rent default before I got the Insurance cover on Jan 2016. They also said they are not going to cover the property damages. Whats the best way to recover for my damages?

    My PM told me that they will lodge Tribunal claims now, will it make any difference? Looks like we will have to bear all losses. Very stressful situation.

    How can we make sure that tenant is in black list for rentals? Is there any government body where we can lodge complaints against the shonky tenants and recover our money? If we keep letting go these bastards, they will continue ripping off innocent people.

    Any suggestions?
     
  18. JDM

    JDM Well-Known Member

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    Your agent should list the tenant on TICA and this will greatly reduce their chances of finding rental properties in the future.

    It might be worth looking into your insurance policy to see if not disclosing two weeks of arrears is grounds to refuse a property damages claim (probably is grounds for the arrears portion of the claim though). Any disputes for insurance you should be looking into the financial ombudsman. A claim is quite costly for the insurer so they will often settle smaller claims to avoid going to FOS.
     
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  19. Satya

    Satya Active Member

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    Thanks JDM. Appreciate your suggestions. Can my PMs still chase ol the tenants to recover our money in any way?
     
  20. JDM

    JDM Well-Known Member

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    Your PM should definitely still chase the tenant's and commence proceedings with the tribunal in your State. The cost to commence proceedings is minimal and the process is quite pain free.
     
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