- 1WinnerParticipant@1winnerJoin Date: 2004Post Count: 477
My daughter has a few investment properties in Sydney and a few in Cairns.
One day she received a call from Cairns saying that the tenant is on the run from the police and that all his possessions are still in the house.
Whilst she was scratching her head figuring out what to do, she received another phone call, this time saying that the tenant managed to avoid capture and is paying his rent ahead of time pleading not to touch his stuff and to let all as it is until he can clear his name. 4 Months so far and all is OK rent wise.
Second story not so nice.
Tenant is a bad payer, stops paying for a month at the time and then comes to pay all in one. My daughter tells the agent that it is not acceptable and to set up a direct deduction or to get rid of him. Tenant accepts direct deduction and all is well for a few month. All of a sudden he comes up with a story that “someone” took his money and that he is missing 2000 dollars and cannot pay. Agent does not tell my daughter of this situation until one and a half month later.
She does not notice the lack of payments because all her properties go into the one account, (conceded no excuse). When she is told she instructs the agent to give notice to pay or go. Tenant works his way through not answering, evading inspections, not going to court, all the way to the arrival of the sheriff who with a locksmith changes all the locks….with all the tenant’s stuff inside. Now my daughter must pay for removal and storage for a month plus advertise every day in the Sydney Morning Herald for a week before she can take all to the tip or St Vincent. If the tenant shows up, he can have his stuff back providing he pays for the cost of removal and storage, ($1,800)Total rent loss 2,000 and counting. Insurance claim pending.
May God prosper you always.[biggrin]
Marccalvin_thirty4Participant@calvin_thirty4Join Date: 2004Post Count: 556
I’d say it is a bit of both, at least in the second case.
Most every-one deserves a second chance (case 1, above), but the second story has had more than a second chance. What about engaging a debt collection agency?! Big nuckle-dragging goons that encourage people to pay up?! I’d probably flick the agent too, after meeting with the principle of the Agency. See what their soution is before going else where (ubless you know of a top rate Agent in that area). Almost better the devil you know thatn the one you don’t……
What are your thoughts on that?
CheersDazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150
This may seem harsh but I’d say both, and go one further and add bad investment to the mix !!
Stories like this simply strengthen our resolve to stay away from RIP’s, where you are constantly having to endure and economically be forced to wade into the very messy quagmire of other people’s private lives. We consider OPPL’s (bad thing) to be at the other end of the spectrum of OPM (good thing).
This is simply one of the risks coming to fruition of investing in RIP’s and in an area out of your immediate control. As your daughter has found out, there is only person who is interested in her financial affairs – her, and fortunately gor her you as well…onya, you’re a good Dad.
PM’s in situations like this are next to useless – all too hard and not enough money to be bothered with. At the end of the day all they can do is write letters and make phone calls. When dealing with recalcitrant tenants who don’t respond they are next to useless.
As for the absolute ridiculous res. tenancy laws…forget it…as your daughter is finding out, it’s a complete farce and heavily stacked against the proprietor.
As our group has discovered, the best and only time and cost free solution to dealing with headaches like this…and the root cause of the headache in the first place…is not to buy these type of investments…
“Go hard or go home”