Tenants behind on rent and damage

Discussion in 'Property Management' started by 13774, 4th Feb, 2018.

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  1. skyfury

    skyfury Well-Known Member

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    This the reality of society.
     
  2. 13774

    13774 Active Member

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    Wow! Excellent discussion people, so I'll give you all an update since my last one.
    Went to VCAT for compensation, got 80% of it which is great, but I have less than 5% chance of actually getting those funds from the tenant(s). It was really for the tribunal to close the case.

    EBM has been great and have come to the party paying out all the damages costs with the quotes provided, as well as the loss of rent and vacancy period, which has lessened the out of pocket experience once processed.

    I'm finally at the stage now of hiring trades and getting the property back up to a presentable and functional state ready for new tenants. Whether I stay with the current agents or not I'm still on the fence about.

    I'll address a few of the commentators also.

    @brettc
    Brett's exactly right, insurance is there as a firewall/last resort, to makeup for the gaps in the civil system. Unfortunately I think the civil tribunal system has a lot of room for improvement and the laws need to be reviewed to protect landlords more. Hang from EBM has been more than fair in my case.

    @Colin Rice
    Your situation sounds similar to mine Colin, hopeless with less damage to the premises??
    Smooth sailing is a privilege and not a right it seems.

    @Mccuzzle
    Don't let fear hold you back, no matter what it is. Do your homework and lower your risks, if you do your homework well, there's lots of tells on what to look for in a successful vs unsuccessful PM/tenant relationship.

    @skyfury
    As Brett mentioned earlier, the system is meant to protect landlords from financial displacement, insurance is there to fill in the large gaps of the system.

    @Lil Skater
    Communication is always key and credit to my PM he did try his best however the tenant didn't respond to any of his attempts. Want to manage one of my properties? ha ha
     
  3. skyfury

    skyfury Well-Known Member

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    thanks a lot for your update, mate!
    you have a good outcome eventually.
    I wish I could have same good outcome as you. My tenant say they will leave next monday and return key, and they have not payed rent for nearly one month, they damaged carpet and one door and I don't believe they will repair them before they give back key.
    I wish I could get lost rent covered, damage repair by insurance and vacant period covered, I have same EBM cover and I will keep whole team posted as well.
     
  4. skyfury

    skyfury Well-Known Member

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  5. 13774

    13774 Active Member

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    You'll get most of it back, and something is always better than nothing in these circumstances, believe it or not, not everyone has insurance.

    When you sit through a tribunal court hearing you'll understand what I mean, the member decides on what they think compensation is most acceptable, from the evidence which is put in front of them, it's not guaranteed

    EBM chase the full balance which they award you from the tenant, same with VCAT, however insurance pay out regardless of their debt collection, where VCAT simply request that the tenant pay the balance directly.

    I would avoid the court system if I can, if you're tenants keep their word and leave on their own accord, that's the best scenario..
     

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