QLD Want to give back holding deposit

Hi Everyone! Have a slight problem, have a IP & am self managing, but with a local PM finding me tenant for fee. We thought we'd found a great new tenant but have since realized he's lying to us on application. We ( or PM really) sent a letter saying he could rent unit & please pay a holding deposit. Tenant did that, then I delved deeper & fully checked him out. Found some info online that shows he's been twice taken to court in the last 3 yrs.
Now I realise he's lying to me on application. He's filled in that there will be 2 adults residing at property. Truth is he has 2 small children, who must be moving in too. As its on the 13th floor I'm uneasy about that & wouldn't have picked him as a tenant (plus the unit is quite small).
I'm about to send him an email saying you must be not telling the truth about who will be living there...as obviously yr children will be there too. His wife is obviously their mother. We haven't filled out a lease yet...was going to do that this week. Can I just tell him I won't be offering him the lease after all & the PM just give back the holding deposit, because he's obviously lied on application. Plus I don't like the fact that he's been involved in 2 court cases ( 1 is for owing money)

 

If he's been taken to court twice relating to tenancy issues, I would be doing absolutely everything in my power to get rid of them as potential tenants. Your PM should be advising you on your options.

 

He been taken to court, once for not paying a Tradie who did work for him ($11,000), another time by the council for letting his house (that he owns) be used for parties on AirBnB. Didn't find this out until I googled his name

 

What I need to know is -CAN we just give back the deposit & he can't complain that we need to go thru with the lease..just because we accepted the holding deposit?? He doesn't have any comeback against us because we accepted him as a tenant ( until,I googled his name). The agent checked he wasn't on Tica, but failed to just google him. So are we ok to just say...here's yr money back?

 

Neither of these are tenancy issues - what have the tenancy references & ledger shown?

Kids aren't on a lease as they don't earn the big bucks.

 

This is a grey area. The RTRA Act allows for implied tenancies- you have offered them terms and they have paid consideration, so there is a contract in place. We have the opposite problem with tenants who pull out of tenancies after paying their money.

You can retract your offer to rent the property. If they know what they're doing and are litigous types, they can take you to tribunal/court seeking compensation (e.g. you cost them extra rent, moving/storage, etc etc by making them go find another house) and you may be liable for that.

What do the references say?

 

They have never rented before..They own about 5 properties according to RPData.. The application form he filled in asked no. of Adults living there (he said 2)..& left it blank in children's no. And he told agent it was just him & his wife, they'd be using it as a weekender. But online stories about him show him & his 2 little children (the multi million dollar house he owns is in the newspaper here on Gold Coast as its notorious for noisy parties & council took him to court- he lost)
He has no rental references, as always a owner. His other references are all family members ( he's a property developer). So nothing I can check as a reference really. But he stiffed a tradie..for work done at property.

 

THANKS Tom, As he told agent he will only be using it as a weekender..(for him & wife only) he can't really try it on that I have cost him money as it could only be that I will have made him look for another apartment to rent (as a weekender). Its a luxury apartment so only having 2 adults use it as weekender is what swayed me to offer it to him. After talking on phone he was being evasive when I asked him about his children & is he going to use it as a weekender only. So my worry is he is already lying to me, at start of tenancy. Plus I'm not comfortable with young kid & toddler being in my place on 13th floor. In case of accident. So as he has obviously lied to me I feel totally within my rights to retract offer of tenancy? Am I right about this ?
Also can see online he's a discharged bankrupt. As lots of developers are! Warning bells all over this guy, wish my agent checked him out better.

 

Undischarged bankrupt ? Thats your out. He cant contract. One of the consequences of bankruptcy is you cant sign a lease....cant apply either. He also cant get services connected. He will be a nightmare.

Bankruptcy

(Dont tell him you know). Just tell him you cant progress his application further and you will arrange his holding deposit to be refunded.

He cant sue you if he is a undischarged bankrupt either.

 

Thanks Paul..but he's a discharged bankrupt! Looks like he got discharged last year in 2020 ...but surely I can get out of it as he lied about who would be living there...& that's what I based my approval on?

 

If it were me, and the prospective Tenant had not signed a lease and a bond had not been lodged, I would return any money and wish them all the best.

 

Seek legal advice on what action he could consider. Nobody can order performance if its let. What loss could he incur if he is refused a lease ? The fact that you consider the property may be unsuitable for little kids and he wasnt honest in disclosure and cant reasonably abandon his kids has to be a factor of concern let alone all his issues

No way should you be implying you are terminating anything. You cant offer him a lease should be the line you stick to

 

That's my thoughts but don't want to cause myself any problems ..should be if you don't have a lease, you don't have a leg to stand on

 

Thanks Paul.. I've now typed him a draft email saying those words that you suggest! That I can't proceed further with lease.
I've looked at RTA & Qcat to see what I can see.. only that if "a tenant cancels & it's for a reasonable reason there is no penalty"
So surely same applies other way unless I caused him costs .. which I can't have as we don't even have a definite moving date for him now- He texted me Sat morning at 7am- saying he wanted to come by & "pay you the money & get the keys this morning." I said "Noo, we need to go over lease & sign it, next week as you requested & move in date is 28th as requested by you.
Then I added in point form my reasons.. mainly that it was offered to him before I found out he has little children & is not being honest in his application

 

Playing devil’s advocate, are you sure his children are moving in? If it’s a luxury apartment they are paying for as a weekender, have you considered that they may have someone look after their kids when they go there?

 

Thought about it before but who would do that! Leave their kids all weekend with a babysitter. He is apparently often away during the week for work..so surely he wants to see his little kids on weekends

 

Yes that is a good point, however when I think of a weekender, I don’t assume spending every weekend there. It could be like a once a month parents getaway. Not the smartest thing to do with ones money, but maybe they have plenty to spare.

 

From what source ?

I would concur it doesnt smell or look right. If they dump the kids then is it a party destination ? Bad people, bad parents, bad tenants

 

A bankrupt person can contract and can sign a lease. They can even borrow money if someone will lend them.

 

You have no evidence or indication that he has lied. but it sounds like you haven't contracted with him yet. Just return his deposit and say sorry we won't rent to you - don't give a reason why.