True Story - Even Good Tenants Can Go Bad

On average how many times would this happen to you in a year?

 

It has nothing to do with this.

We have multiple IPs. We deal with multiple REAs. Some REAs have multiple PMs. Each of our PMs manage multiple properties (I assume 200+) and deal with multiple landlords. Some of our REAs manage multiple IPs for us. Some are different PMs in the same REA.

When we have any issue with an IP, for example a break lease, I don't want to have to think about which IP is it, which REA is it, which PM is it, which tenant is it, ...

I don't want a case by case assessment; I want the same process to be followed in every case. As I said earlier, keep it simple.

 

... and you are allowed to make any decision that is right for you without explaining or justifying to anyone

 

You are absolutely right.

But I don't mind explaining and justifying my decisions, processes, etc to PC members, especially newbies.

It is easy if you only have one IP but, when one grows a portfolio of multiple IPs, one has to look at ways to minimise your workload. Otherwise, it will become a fulltime job in retirement. I don't need that . You need standard agreed processes, etc, etc. NOT case by case decisions.

I just wish PC/Somersoft was around 30 years ago when I was starting out. I made a lot of mistakes along the way, I learnt from those mistakes, I hope that others on PC can learn from mine,...

 

I agree, Busy people have systems. I have absolute systems for everything from running a very busy rapidly expanding office to running a household and raising 3 children.

All washing is done on saturday mornings, with the help of a couple of cleaners and I have systems to get things done as efficiently as possible (usually have 4-5 open inspections booked on saturday afternoons so no time to waste).
My system for getting through the massive volume of clothes is washing machine, dryer, fold, closet. There is no time to analyze what is being washed or what colour it is or separating clothes or anything like that.

Every now and then my well meaning mother tries to help, but her procedures are slow as she stops to analyse specific things, "this one is too thick, it should not go in the dryer" "this one should be handwashed".... all those things are double handling or triple handling and not time efficient. My mum, although well meaning, has never worked so has no idea how to put procedures in place and work at a fast speed to get things done quickly.

 

I would one further and say that SUCCESSFUL people NEED systems.

Whether it be in their business/working life, whether it be in their home life (e.g. like the washing you mentioned), etc.

I even have it in my relationships. For example, every Saturday night, my wife and I have a date night. We don't even have to ask each other if we are having one, it is a given. Now, some might say that this takes all the romance out of a relationship. Not true, we do unexpected and loving things all the time (another component of our system) but Saturday date nights are locked in.

Like I keep saying:- keeps life simple!!! Especially for us old folks.

 

Systems, focus, don't sweat the small stuff = success.

 

I agree with you regarding 'keep it simple' - just my version is different. Personally I'd rather not go to tribunal over something small that can be resolved quickly with no fuss.

From my perspective, my pm is going to ring me or email me and tell me what is happening with the tenant/ property anyway. It doesn't require any extra thought processing to deal with it on a case by case basis.

 

If you re-read my OP/this whole thread, you will notice that the tenant applied to the tribunal, NOT me nor my PM. My PM has even suggested to the tenant that she assign the bond over to us and withdraw her tribunal application but she won't/doesn't want to. The tenant is the one making the fuss. What would you suggest I do; not attend. No way. The tenant leaves me no choice:- I have confirmed to our PM to represent me at the tribunal.

Sounds like you have a system. My system is:- 1) Get the break lease costs from the tenant; 2) If we can't, get the break lease costs from the bond; 3) If we can't, claim on our insurance. This is our process for every case. No thought required.

 

So for that amount of money do you still claim on your insurance? Is that not below any excess you would have to pay?

Cheers,
Inertia.

 

For my policy, the Excess are:
Excess
Loss of Rent Nil
Malicious Damage $400 Per Claim
Accidental Damage $400 Per Event
Theft by the Tenant $400 Per Claim
Legal Expenses Nil

There wasn't any Malicious Damage, Accidental Damage nor Theft by the Tenant. Hence, no excess. So might as well claim.

 

For historical (and hysterical) reasons, I thought I would provide an update to this thread (plus I promised I would so in an earlier post).

You may remember that we were due to go to QCAT on 29th March. Well, about a week before Easter, the tenant contacted our PM and offered to pay for the following out of the Bond refund ($1,780):

Cleaning $308

Gardening/Rubbish Removal $100

Carpet cleaning and Pest $265

Sub-Total: $673

Water Usage $173

Rent (10 days vacant) $636

Total: $1,482

Via our PM we suggested to the tenant that she pays the relet fee ($490) as it was $146 less than the rent she was proposing (better for her) and we could claim it on our insurance (better for us). We would still need to go QCAT for a ruling as this was required by our insurance company (a risk for us as one cannot be certain how an adjudicator might rule).

To our surprise, the tenant didn’t seem that keen to go to QCAT (even though she submitted the application).

We gave up. We accepted her proposal. The only out-of-pocket expense for us was the relet fee. We can’t claim this on our insurance but, given that the tenant had paid her rent as lump sums twice in advance for a total of 18 months, we had earned more than this amount in interest.

We will never know or understand:

1. Why she filed a QCAT application?
2. If someone was in true hardship, why didn’t she save herself $673 by doing the cleaning, etc herself?
3. If someone was in true hardship, why didn’t she agree to the smaller cost of the relet fee and save herself another $146?
4. When the QCAT hearing was approaching, why she came up with a proposal to resolve the situation and gave the impression of being hesitant in attending QCAT?

It is things like this that make us individuals and the world such an interesting place to live.

By the way, the new tenants have been there for nearly a month and things seem to be going fine.

 

Keiran at the end of the day her motives don't matter, it's about what you want.
I would have given her a final invoice of break lease charges, rent, water combined and not the option to choose lease break costs over rent etc. pay the entire invoice, this is what is owing!

I would have pushed through to the hearing to claim the rest, it was set in place anyway and she would have paid for it so risk free for you. You would have gotten your lease break charges there.

Was bond awarded to you?

 

That is what I wanted to do (as I was not convinced that the tenant was suffering 'true' hardship) but the Bond was $192 short.

Our PM was concerned that if we got a 'softie' adjudicator at the hearing, and the tenant convinced them of their hardship, told them how she made a proposal and we refused to accept it, that we were 'meanie' landlords, etc, etc, we might have come out worse off. I was in Melbourne for the day of the hearing, so I couldn't be there to see how it was going to run.

Our PM has had a similar experience at QCAT and the landlord came out worse off. In the end, I was persuaded by her arguments, agreed to the tenant's proposal and she withdrew her QCAT application.

May be we need you as our PM .

The tenant signed over $1,482 from her Bond.

 

This isn't that bad.

I have a good clean tenant who signed up 5 months ago to a new lease on one of my properties.
All was well & good for 3 months till 6 weeks ago when she decided to stop paying rent.

She has been awarded a $500,000 compensation claim so she definitely has money but she has some personal issues.
REA has issued a notice to vacate so we shall see how that comes along. The notice for vacate is on 8th April..

 

I find that there is no loyalty in being a good tenant,

i n my experience, great tenants turn to crap based on the simplest of circumstnaces

not excluding
relationship breakdown
health issues
job loss
even refusal of unreasoanble maintenance requests

 

I'm sorry that this has happened to you. However, I agree with the majority of other posters in that this isn't a good tenant gone bad situation.

She broke a lease because her circumstances changed. You will get a new tenant in with minimal damages/time out of the market.

Seems like a pretty normal situation to me.

 

Depends on your definition of bad. I posted my definition in an earlier post but I will repeat it below:

Bad Tenant - one who don't pay their rent, breaks lease, skips through and refuses to meet their legal obligations, ...​

Yep, IMHO, she went bad.

As I posted above and I will repeat:

By the way, the new tenants have been there for nearly a month and things seem to be going fine.​

New tenants moved in within 10 days of the previous tenant doing a bolter and the previous tenant paid the rent during this vacancy period. So, no damage.

Depends on what you define as normal and what you expect from your tenants. We bought this particular IP nearly 25 years ago and it is the first time for us that this has occurred. I wouldn't say that this was normal.

May be we select a better class of tenant and have higher expectation of our tenants than some landlords. To us, we treat IP as a business. We provide a good level of accommodation to our clients/tenants and we expect them to pay market value rent on time for that service. It is that simple.

 

Sounds like she is still a good tenant, just having a bad period, I was waiting to read that she went back and smashed it all up, or a drug house was being run there.....yeah, so no drama.

 

That is your opinion and I respect that.

But I have a different opinion - so we will have to just disagree.

You might expect that from your tenants but that thought NEVER entered my head and I would NEVER expect that from mine. Good luck with yours.

I never said there was any drama. So I totally agree with you.