Aunty has not paid rent for a year

eneloop on 14/10/2016 - 09:06
Last edited 17/10/2016 - 19:32

Guys, I need your advice.

My aunty(mums sister) owes me one years worth of rent.

She is a single mother she has a son(my cousin) unemployed( not receiving any government payments) 24 years old.

I have a unit in Sydney 2 bedroom and am currently renting it out to my aunty for $325/week when the market value is between $450-510

She has been living in the unit with her son for about 8 years now and I have never increased the rent.

She has been in and out of different jobs in that period of time and my cousin has also been in and out of work.

The last rent was paid 13 October 2015. I initially didn't say anything for about 6 months hoping she was putting the money aside for me. When I asked her about the rent she said "you didn't say anything and I said stuff him and put have been putting the money towards my personal loan".

I really feel sorry for them. My nrs even said to me to wipe off all her debt and let them start from scratch.

Another thing is, these people don't appreciate this.

My cousin just got back from an overseas holiday where he told me he spent 9K

What should I do?

I want to put the rent up, but they can't even pay the $325 I want to kick them out but it's my aunty and they won't be able to afford anywhere else.

Update:

So I have been thinking today while I was at work and am going to take the following steps to try and sort this out.

I don't want to damage the relationship I have with my cousin, I'm not to concerned about my aunty. My cousins father left them when he was 9 and this effected him a lot. My aunty remarried but that didn't last too long. I have been somewhat of a father figure to my cousin but he does have some anger issues and can be very stubborn at times. I am currently trying to find him a job.

I am going to sit them both down and explain the situation, I'm not sure if my cousin even knows I'm not getting rent as I never mentioned this to him. I'll ask for rent to be deposited into my account when it is due. I will raise the rent to $450 January 1 2016. I will still persue the money they owe me which is $23,000

Update 2 (15/10/2016)

I just spoke to my aunty and cousin they thought that I was letting them stay for free because I didn't ask for rent.

Financial

Comments

  • kerfuffle on 14/10/2016 - 09:10
    +171

    If they can afford to blow $9K on a holiday but not pay you rent for over a year, I think that's grounds for kicking them out …

    • Kangal on 14/10/2016 - 16:12
      +11

      I think its a unanimous response from everyone here:

      Evict.
      You won't get your money back.
      You cannot trust them in moving forwards.
      You're responsible for this outcome.

      Just agree this was a $70,000 dollar lesson.
      Move on.

      (450-325= 125)
      (125x52x7= >45k)
      (450-0= 450)
      (450x52x1= >23k)
      (>45k + >23k= >68k).

      • antzz on 14/10/2016 - 17:45
        +12

        WTF?

        • 2Cheap2Pay on 14/10/2016 - 18:27
          +13

          I think the $125x52x7 is meant to be the foregone rent OP missed out on by renting to their relatives for 7 years.

        • Kangal on 14/10/2016 - 18:35
          +13

          He said the property is worth $450, right?

          So $450-325 = $125 every week in lost rental
          (because the OP was generous)

          In one year there are 52 weeks (365 days divided by Seven).
          So 52 weeks x $125 = $6,500 every year in lost rental.

          And she's been renting for 7 years.
          That's 7 years x $6,500 = $45,500.

          Then there is the 1 full year she didn't pay any rent.
          That's $450 rent x 52 weeks x 1 year = $23,400 in lost rent that year

          So what's the total??
          $45,500 + $23,400 = $68,900
          (but it's possible/likely to be even higher, especially if its ~$510 as per the OP)
          (So it could be as high as $94,000)

          …it's hilarious you should say "Math is not your strong suit"

        • Scrooge McDuck on 14/10/2016 - 19:01
          +14

          @Kangal:

          And she's been renting for 7 years.
          That's 7 years x $6,500 = $45,500.

          Except that the lower bound for the market value today was probably less 8 years ago. So the discount isn't constant over the years.

          If we assume that the market value has increased linearly from $325 8 years ago to $450 a year ago, the total discrepancy is half of what you calculated (trapezoidal rule).

        • Kangal on 14/10/2016 - 21:43
          +41

          @Scrooge McDuck:
          That's sound thinking… but you're making an assumption here.
          I just went off the figures that were given.

          However, if we were to use a more realistic approach to this we'd need more information, or at least justifiable assumptions.
          So I went to realestate.com and checked out which suburb in Sydney today would best fit the price bracket of OP.
          The closest one I found was Lidcombe, ~$480, priced today/2016.
          http://www.realestate.com.au/invest/2-bed-unit-in-sydney,+ns…

          So I just have to go back 7+1 years, back to 2008 and on-wards, to see how the prices have changed.
          And this is the data I extrapolated:

          2008: $310
          2009: $400
          2010: $430
          2011: $400
          2012: $430
          2013: $430
          2014: $450
          2015: $450
          2016: $480

          So if we normalise the data, we can conclude with the justifiable assumptions that:
          - the rental is worth $480/week in 2016
          - the rental increases $10/week each successive year (to go with trend, whilst following legal aspects)
          - the rental started in 2008 for $400
          - a more accurate rental loss can be determined rather than a generic Trapezoidal Rule estimate

          So now we can start number crunching :D
          Rental loss in 2008: $3,900….
          …$4420….$4940…$5460…$5980…$6500….$7020….$7540……($24,960)

          Now let's adjust it for inflation :D
          Rental loss in 2008: $4940….
          …$5436….$5899…$6330…$6730…$7103….$7447….$7766……($24,960)

          Now let's add all those figures up:
          …$51,651 + $24,960 = AU$ 76,611

          So the OP has lost more than $70,000 in rent over the 8 years.
          My initial analysis was an estimate, but it seems to have been accurate.
          Or at least accurate to the circumstances/details given by the OP.

          *Obvious assumptions made throughout, but the format should be followed for a better estimate for OP.

        • DarwinBoy on 14/10/2016 - 22:41
          +24

          @Kangal:
          Mate. You have definitely proved your point. Not sure I would go to the effort but like the commitment.

        • Kangal on 14/10/2016 - 23:12
          +11

          @DarwinBoy:
          I aim to please : )

        • zolinger on 15/10/2016 - 05:36
          -4

          @Kangal: Not sure why we're assuming its 7 years here, OP said its been a few months (since 2015)

        • Moose-au on 15/10/2016 - 09:40
          +1

          @syousef: Try this: Stop and think before you speak.

        • [Deactivated] on 15/10/2016 - 11:33

          @Scrooge McDuck:
          And the whole 'I didn't raise rent or tell you anything but now I'm just gonna back charge you because you owe me for 7 years I was kind to you' thing is not only not legal but an incredibly gross attitude

        • Gotchas on 15/10/2016 - 12:26
          +2

          @Kangal:
          Don't forget compounded interest and negative gearing benefits

        • shamid202 on 15/10/2016 - 13:37

          @Kangal:
          the rent increases by 5-15% each year. $125 is for the last year not 6years ago. probably their rent increase only $30-40 on the second year.

        • syousef on 15/10/2016 - 16:20
          -7

          @Peanut money:

          Keep going guys. Pretty soon he'll have lost $1M…

          smh

        • Pornboy69er on 15/10/2016 - 17:31
          +1

          Common sense isn't your strong suit.

        • Deviner on 17/10/2016 - 17:30

          @syousef: Are you backward or something?

          "The only money lost here" is the amount he discounted them by for the entire duration - because they're his relatives and he didn't look for the whole amount - and then there is the amount that they didn't pay for the last 8 or whatever years.

          He's explained it pretty clearly …

      • Donaldhump on 14/10/2016 - 22:57

        what did you smoke?

        • Kangal on 15/10/2016 - 00:03
          +2

          You think that $70,000 figure is as High as my THC levels?

          See my above post for the calculation of the figure.
          The attitude of the Aunt, despite her prosperity, is my justification to side with everyone in this thread calling to evict her.
          There is not many/any options available to deal with people such as thus.

        • syousef on 16/10/2016 - 11:01
          -3

          @Kangal:

          When you give away money to charity do you count that as a loss too?

          He agreed to reduce the rent for his family. There was no loss whatsoever there.

          The money they agreed to pay but did not was the only loss.

        • Kangal on 16/10/2016 - 17:49
          +5

          @syousef:
          Sorry to hurt your sensibilities but that Aunt and Cousin, they aren't "family".
          If that is what family is, then I wish everyone would be a foster child.
          They took him for a ride, and don't care about him in the slightest (based on what I've read).

          Your strawman arguments don't hold any weight, and everyone else can see through it.

          What I was saying, and what everyone else can here can comprehend is this:
          Had eneloop actually rented out his property out to outsiders, he would be $70k richer.
          I never said he should ask them for $70k back
          …in fact, I actually commented that he probably won't see any money back, because: family.

          He is under no obligation (that I know of) to rent out his property to her at all, or in a discount rate.
          That is why he should cut his losses, and move on. And use this as a life lesson.

        • syousef on 16/10/2016 - 18:07
          -7

          @Kangal:

          There is no straw man here and a popular opinion doesn't make it a correct one so cut out the smug "everyone can see" nonsense. (Donald Trump is popular FFS).

          You don't get to revisit something as a mistake years later because it turns out someone is using you. Ask any man who's had a messy divorce (thankfully not my story). When you give away money to family or friends by cutting them a deal, it isn't conditional on the friendship not souring. If you count the cost of every beer you shouted a buddy if they turn out to be a dirt bag I can only say grow up. The OP had taken on the cost of cutting the deal with family and went into that with eyes wide open. It cannot be considered a loss. The year where they didn't live up to their part of the bargain is different because the OP didn't agree to that (although by his silence for a year he sort of has there too).

          He made many mistakes other than renting to family, and all you considered was the amount he could have rented for without any consideration of what else could have gone wrong or what other expenses doing this properly incurs: income tax, landlord insurance, which may or may not have covered the cost of it going empty. Tenants who trash the place or insist on expensive repairs that aren't necessary to try to wear you down. You're just looking at the gross takings as pure profit. That's not realistic.

          Regardless. What I've said later on in this thread and which was more popular stands. OP isn't looking for advice. He's looking for validation of what a nice guy he is. And he's likely dodging income tax.

        • Kangal on 16/10/2016 - 18:36
          +3

          @syousef:
          You are LITERALLY taking what I said and twisting it.

          I said nothing about being smug, Donald Trump, or pure profit.
          I posted that this was a $70k lesson to the OP.
          People started posting/asking about where that figure came from.
          I did the maths.
          That is all.

          I never said he should charge them $70k, or anything.
          Those are assumptions you falsified.
          The OP is going through with this issue, and what he can take from this as a life lesson will be his profit.
          That is the beauty of the human brain… we have the capacity to think back and say "man I wish I did this differently". Then to implement some personality changes and lifestyle modifications to better improve ourselves and the world around us.
          So as multiple people have said, including me, he should look to the future and cut his losses.

          You may be to afford to throw away $16k, or $27k, or even $70k on your Aunt… but not everyone can afford to do so, or would want to be as generous as that. This is something you aren't understanding.

        • Kangal on 16/10/2016 - 20:47
          +3

          @syousef:
          Omg, Yousef, just let it go man.

          I never said that you are the type of person to be stingy with money and family, or vice versa.
          No, there is no pot and kettle.

          Yes, that is the lesson.
          I am saying he should cut his losses BUT (!!!) he should KNOW what those losses are.
          This affair not only affects him financially, but personally too.
          The reason why I say this is, when you sit down and think about it… you actually realise almost every mistake weren't a sudden accident. There are clues and considerations, and checks that could be made before making the mistake.

          The OP was going to rent out his property outsiders, but allowed his aunty and cousin to stay because they needed help and a place to stay. He lent his property at a reduced price. They took advantage of his generosity for those years. They later stopped paying rent without a reason, and cashed it in for a leisure retreat.

          I am not whining… you are.
          I'm reading all of your posts and its just one complaint after another.
          As I said, and you can scroll up to verify; All I Did Was The Math.
          The decision, the lesson, and the price…all of that on the OP.
          Calling it a $70k lesson might be petty… but do you know what's worse? A $70k mistake.

          If the OP could go back 8years in time, he wouldn't have let to them.
          And its not just about the money, it is about the personal pressure, and about their attitude.
          I'm sure there were plenty of small signs of why this would've been a bad choice.
          He would've probably been better off leasing his own property to other people, but agreeing to help his aunt move into another property. He could've paid for the movers, the bond, and pay off 3 months rent.
          Then he could just wash his hands off this dilemma, and give his lazy cousin and aunty the opportunity to uphold their own responsibility.

          Beggars can't be choosers.
          But apparently his aunty doesn't know that.

          *again, this is all based on what we are told. There may be inaccuracies in this story. And the actions should always be thoughtful and proportional to the situation at hand.

        • tomsco on 16/10/2016 - 21:37
          +2

          @syousef: he already advised the income is being reported.

        • syousef on 17/10/2016 - 05:11
          -6

          @Kangal:

          So you're asking me to let it go, but advising the OP to be bitter about being unable to go back in time 8 years and not let. Yeah that makes sense.

          Speaking of which, please look up the word "literally" in a dictionary.

          While you're at it I have no idea if "I am not whining… you are. I'm reading all of your posts and its just one complaint after another." means you're going and selectively reading unrelated posts to re-enforce your pre-conceived notions. But if so that stalking behaviour is kinda disturbing. And yes it has to be selective if you've ignored every joke I've made on this board in the last few days. Yeah let it go indeed.

          I'm gobsmacked.

        • Kangal on 17/10/2016 - 08:41

          @syousef:
          I'm not that dumb that I need to read a dictionary, but nice try.

          I am not telling the OP to be bitter, that there is you attempting to twist my words.
          I am telling the OP to cut his losses, but to know what those losses are.
          Being generous to his aunty was wrong, its not charity, its deception what she is doing.
          Everyone seems to get this, so why can't you.

          Because I read all of your posts, I am a stalker?
          Whatever.
          Your stance/comments are all up there for everyone to read. No need to be selective.

          Just…Let it go, Kangal…syousef is not worth replying to.

        • syousef on 17/10/2016 - 08:49
          -1

          @Kangal:

          Do you often talk to yourself and mistype people's names?

          Yes that your definition of "let it go" includes reading other unrelated messages and telling people they're all negative while ignoring a multitude of jokes does make you a stalker of sorts.

          I'm telling you your accounting of those losses are fiction. I don't get it because I understand what a sunk cost is, and what charity is. You are expecting something in return - that people never abuse the money you gaveotherwise you call it a "waste". That's not charity.

        • Scrooge McDuck on 17/10/2016 - 10:12
          +4

          @syousef:
          @Kangal:

          Can we all just hug it out now?

          *group hug*

          ^_^ ^_^

        • syousef on 17/10/2016 - 11:03
          -3

          @Scrooge McDuck:

          shrug It's just an argument. I have no problem with leaving things at that.

        • Nametab on 17/10/2016 - 12:40

          @Scrooge McDuck:

          Am I the only one who thought of this?

        • syousef on 17/10/2016 - 14:04
          -5

          @syousef:

          Even that gets downvoted? Fantastic example of why anonymous downvoting is awful.

        • Kangal on 17/10/2016 - 15:52
          +1

          @Nametab:
          I haven't seen that in ages, Hahaha.
          I was thinking of posting something witty like that, but realised that it just isn't worth replying to him.
          That other guy is so overkill defensive, it makes me think he could be the aunt lol

          @Scrooge McDuck:
          Ah, thanks man… I needed this : )

    • Scrooge McDuck on 14/10/2016 - 18:55
      +15

      I wouldn't kick them out… yet. But OP definitely needs to be firmer with them.

      Family or not these people are exploiting you OP.

      I would inform your Auntie that she owes you $16,900 in unpaid rent and that the current pre-judgement rate of interest is 5.75 %.

      Explain that you have given her a huge discount to market value over the years and are willing to continue that to some degree so long as she commits to a payment plan to repay the debt in full.

      From her POV, it will be cheaper to stay in your unit than to find another and pay the market rate.

      At this point you give her two options:

      1. Stay in your discounted unit and start to repay the debt.

      2. Get out and face a case in the local court for the full amount outstanding plus interest and costs.

      (The third option of her leaving AND voluntarily repaying the debt probably isn't feasible.)

      If she chooses option 2 send her a letter of demand for the full amount outstanding and prepare to take the case to court. If she can't afford to pay, the court will be able to seize her assets and income.

      • Kangal on 14/10/2016 - 22:05
        +6

        Just going off the "vibe" from this family member… I think they would be more inclined to take option 2.

        She wouldn't want to pay the full $17k owing (which should really have been between $23k-$27k if OP is correct about rates).
        She would rather trash the property and move out without giving the keys (we've seen these before).
        And since the OP has been so lazy with his financials, the aunty will bank on that he will be too lazy to take her to court.

        Which, I'm not so sure the OP will be willing to go through with it.

        Another point to think about is that the court may find her guilty and order her to pay… but you might get payments back in a horrible set rate such as $70 a week. At which point, it would take roughly 1,700 days to recoup the losses. Or about 4 years and 8 months. Nevermind the legal fees.

        The aunty will probably keep the $17k profit.
        And also benefit from the $50k profit accrued by her for not paying standard rates through the years (ie/ ripping off her own family).
        She will move out to a crappier property, in a worse location, and it'll costs more.
        Then she will go around telling all her friends and family what a terrible nephew she has, how he has benefitted from her, and how he threw her on the streets "like a dog".

        That's the "vibe" I am getting. But I sure as sheep wish that I am wrong.
        My wishes go out to you eneloop. We hope you will hold your charge through this stress. And please keep us in the loop, we like to know what kind of actions/resolve comes from this peculiar situation.

  • tomsco on 14/10/2016 - 09:15
    +40

    When I asked her about the rent she said "you didn't say anything and I said stuff him

    You cut them some slack and this is how they treat you.

    I don't know what your family is like, but charity like this would stop at my immediate family (parents, siblings, kids). If they were humble about it, I'd consider maybe reducing it, but your aunt's attitude (stuff him) and you cousin dropping 9k… I'd evict.

    they won't be able to afford anywhere else.

    They could if she got a job.

    • BigTed on 14/10/2016 - 15:34
      +11

      Bingo.
      OP made the mistake by renting to ungrateful turds who were never going to pay and just take advantage.
      BUT - when they come back with a response like this, you kick them out asap.
      This situation will never improve until you do = you will never get your rent, and they will never act responsibly or appreciate your generosity.

  • cypher67 on 14/10/2016 - 09:15
    +50

    You're being taken for a ride, tell her to pay up or get out. Dont let the fact they are family stop you. If they cared about family they wouldnt leave you $16k+ out of pocket. if the Cousin can spend $9k on a holiday then the cousin can help out his mum pay rent.

  • DarkOz on 14/10/2016 - 09:18
    +22

    Your relatives have taken your generosity for granted to the extend that they are taunting you when you dare to question them.

    Feeling sorry for them and helping them out is one thing. Continue to be taken for a ride by them is another. Confront them and expect it to end up nasty or let it go at your own financial loss with no end in sight.

  • Hellfire on 14/10/2016 - 09:22
    +20

    Wipe the debt and kick them out.

  • ESEMCE on 14/10/2016 - 09:24
    +52

    I'm assuming the son is 24 years old (the one bragging about dropping $9k on a holiday?) and not the aunty who is 24 years old?

    A woman is not a "single mother" if the "child" is 24 years old!!! Even if the 24 year old is living with her and is unemployed.
    She's just a single woman who is mother to a 24 year old…

    She's clearly using you for free rent and isn't even thankful for it.
    Hell you could evict her, get market rates for rent and give her the difference to ease the guilt and you'd still be WAAY better off than the current situation!
    She could continue to suck at your teat financially, so she couldn't afford to hate you for the eviction!

  • iamw0man on 14/10/2016 - 09:30
    +29

    Honestly, they don't sound like the type to leave quietly. I would wipe the debt simply because you never see that money again but plan to get rid of them. Maybe you could move them out to a hotel under the guise of renovations. Then once they're there, let them know the debt is wiped clean and you'll be covering their next week or two at the hotel and their stuff will be in storage until then when you'll move it to their new address. May sound like overkill but if they're the type to do what you've described, I wouldn't put it past them to lock themselves in the house or even ruin it on their way out. Paying their moving costs will be a lot less stressful than paying to repair your property.

  • Islander on 14/10/2016 - 09:38
    +17

    "No good deed goes unpunished"
    Your generosity has cost you and sadly like the others have mentioned you more than likely never to see that money. Do you have a written agreement?
    family matters involving money are easier said than done. Wish you good luck. I'd still approach them about the rent in arrears. If you don't put a value on it it is taken for granted. Does the place needs renovation? That could be your way to politely so them to vacate and then rent it out.
    All the best

  • Olokun on 14/10/2016 - 09:40
    +5

    You definitely should not feel sorry for them. They know exactly what they are doing to you.

    If you want to tread carefully over this family matter, perhaps you can come up with being unable to maintain the financial upkeep of the property/mortgage and because of the accumulated shortfall will need to increase (as well as collect) the rent immediately. If they do not agree to this then they are free to move out.

  • bemybubble on 14/10/2016 - 09:49
    +8

    Not to try and put the fear into you and I know you're a fair way off this, but;

    Same thing happened to a client of mine, straw that broke the camels back was he went hard in on them due to the fact they were bordering on being allowed to claim the property through adverse possession. Scary stuff.

    You might as well be writing them a cheque for the money, it's effectively the same thing as living rent free…

    • Bren20 on 14/10/2016 - 19:50
      +5

      Not a lawyer, but I know a little bit about adverse possession, albeit in Victoria. If they've been paying you rent up until a year ago you have nothing to worry about, as up until a year ago you have clearly been exerting possession of the house. If you are to continue under the current situation where they get a free ride, make sure you are directly paying any rates/land tax, as that is a consideration in adverse possession claims. If it continues for a considerable time (say 6 years), seek legal advice as they're probably going to steal your house.

      • Kangal on 14/10/2016 - 22:10
        +2

        Yikes, that is scary…. I hadn't even thought of that.
        Hell… I feel like this might happen to some/alot of people simply for the fact that no-one thinks about things such as this.

        Faith in humanity is rocky again : \

  • slow on 14/10/2016 - 09:51
    +5

    I have had a similar situation. I would sit them down and tell them that you are doing your best to hep but the reality is that at the moment it is costing you $450 a month to have them there (The rent you should be getting) and it is not sustainable for you anymore to have them. You may have to consider selling which will leave them in a far worse situation. So they need to make a decision

    I think the chances of getting backpay are slim, so you have probably lost that.

  • JimB on 14/10/2016 - 10:09
    +14

    You're a good person, but they are taking advantage of you maybe because they see you as wealthy with a bottomless pit of money.

    When I asked her about the rent she said "you didn't say anything and I said stuff him and put have been putting the money towards my personal loan".

    I don't fully understand what you/she said.

    I would tell them that you have decided to sell. Tell them you need to to repaint it so they need to move out. Saves any sob stories etc.

    Unfortunately these people have taken advantage of you, I wouldn't even bother asking for the rent to be back paid.. just move on and get new tenants in.

    • onetwothreefour on 14/10/2016 - 12:38
      +5

      He asked her why she hadn't been paying rent for the past 6 months and she said it was because he hadn't said anything when she initially stopped paying so she just used the money to pay off a personal loan that she has.

    • iamw0man on 14/10/2016 - 15:41
      +1

      "You didn't say anything [at the time when I first stopped paying rent], so I said 'stuff him!', and have been putting the money towards my personal loan."

      • JimB on 14/10/2016 - 15:50
        +1

        I got confused with the 'stuff him', it should have been 'stuff you'.

        However I doubt the aunty would have said 'stuff [the OP]' directly to the OP when he asked about the rent.

        • iamw0man on 14/10/2016 - 15:52
          +3

          Well, she doesn't exactly sound like the most polite person. I think the idea was that she was recounting her inner monologue in past tense.

  • Oofy Doofy on 14/10/2016 - 10:16

    Unfortunate situation. Definitely best that they make arrangements to leave, but like a poster above said, it's probably best to tell some white lies to save the nonsense in order to get them out of the property.

  • Pharos5 on 14/10/2016 - 10:35
    +10

    If her son is 24, she's not a single mother.

    This will only get worse. My advice in 99/100 situations is to give them the benefit of the doubt, love thy neighbor, etc. This case I'm advocating kicking them out.

    If its makes you feel any better, it's a good lesson for the son to get his life together.

    • Kangal on 14/10/2016 - 22:19

      What age is the cut-off for the child, to qualify the mother as a "single mother"?
      (And the child is healthy, doesn't have a mental or physical disability)

      Not a rhetorical question, asking for differing opinions here.

      • JediJan on 14/10/2016 - 22:40
        +2

        I believe it is 18, or at least up until the child finishes secondary college, or leaves to start work, whichever occurs first. (Child support is only payable up to the age of 18 too, unless a claim is made and ratified by the Child Support Agency about extenuating circumstances). Then the child could start claiming for Student Allowance or Newstart. Only one of them could claim Rent Assistance though.

        My understanding only.

        Also the term to use is sole-parent.

  • tomclancy on 14/10/2016 - 10:47
    +17

    Another option: let your aunty know that you cannot afford to maintain the mortgage repayments without any rent, so you are forced to put the unit up for sale. Get a sales agent to visit the property.

    Hmmm… I wonder if you could find an agent willing to fake a sale? Then going forward you put an agent in to rent the property out - the property owner's name never needs to be mentioned if you go through an agent.

    • JediJan on 14/10/2016 - 17:00

      On my lease it has the property owners name and address; this was prepared by a (prominent) real estate agent. The property owner and I have never requested other leases be drawn up (which costs the owners more $s) so basically I am on a month to month agreement now … for eight years.

  • bargainslut on 14/10/2016 - 11:04
    +1

    The best thing is to work out exactly you need. Then approach them in a friendly yet assertive manner.

    If they respond well then great.If not it could cause internal family feuds which are no fun. I wish you all the best in this tricky situation.

  • bdl on 14/10/2016 - 11:11
    +3

    You have an awesome username.

    • Kangal on 14/10/2016 - 22:24
      +2

      With all that battery savings, that's how he can afford to allow such rental losses.

  • Ughhh on 14/10/2016 - 11:15
    +13

    Money and friends/family don't mix. If you do mix it and give money, prepare to see it as a gift or end/ruin the relationship.

      • Ughhh on 14/10/2016 - 12:45
        +11

        Did you bother to read the rest of the sentence? I didn't say you can't lend at all, I said if you do, prepare to see it as a gift.

        • outlander on 14/10/2016 - 12:56
          -8

          Ughhh..not really lending then, is it? :)

          Plus I don't really believe in gifts, you know, they aint legal

        • Ughhh on 14/10/2016 - 16:23
          +6

          @outlander:

          You're the one who mentioned "lending", i just said money and family don't mix. As I said, prepare to see it as a gift, or ruin relationships by pestering them if they don't return it.

          do you think the people who owe money said "can you give me $2k" or "can I borrow $2k"?

        • callum9999 on 14/10/2016 - 16:36

          @Ughhh: No, they made perfect sense… If you can't expect to get money back from a loan then it isn't a loan.

        • JediJan on 14/10/2016 - 17:07
          +2

          @Ughhh: Outlander just sounds like someone who has not had this experience. Your comment made complete sense.

        • Ughhh on 14/10/2016 - 20:10
          +2

          @callum9999:

          If you can't expect to get money back from a loan then it isn't a loan.

          So basically, if your friend asked to borrow $2k from you and hasn't returned a cent for over 6 months (and it doesn't look like he's going to), then it was never a loan to begin with?

          You realise op is and has been expecting money back. People need to be aware and think in advance of what could happen and what you can do if things go wrong, so you can avoid awkward moments like op.

        • callum9999 on 14/10/2016 - 22:40
          -4

          @Ughhh: Ermmm, you're the person here saying you can't have loans between friends and family, not me…

        • Ughhh on 14/10/2016 - 22:43
          +4

          @callum9999:

          Money and friends/family don't mix. If you do mix it and give money, prepare to see it as a gift or end/ruin the relationship.

          I didn't say you can't lend at all, I said if you do, prepare to see it as a gift.

          Those are quotes from myself. Please share where I said you can't have loans ?? Also please read the entire sentence, rather than just stopping mid sentence.

        • callum9999 on 15/10/2016 - 14:55
          -2

          @Ughhh: I give up. I've always had crazy notion that if you give someone money without expecting it back then it's not a loan.

          I really need to stop reading Internet forums, I rarely come away with a high impression of my fellow citizens!

        • Skinnerr on 15/10/2016 - 17:05

          @Ughhh: >Money and friends/family don't mix

          There. Speak for yourself. We had a family friend lease us his house while building his new one for well under market rate and we've had his back when he needed help. Maybe you just got suck arse friends/family? Dont gotta tar everyone with your shitty brush.

        • Ughhh on 16/10/2016 - 12:52

          @thedude23:

          Parents and I lent my cousin about $10k to get him out of debt. We expect it back and we have agreements on how and when to pay monthly. However, if he does turn his back and not pay, we're not gonna report him to the ATO, take him to court or do things to make his life terrible (like others have suggested here)- things you would have no problem doing to a stranger. We're prepared to not get upset like the op- that is what I'm talking about.

          I didn't say everyone is going to be shitty, but shitty family/friends is harder to deal with than strangers, understood?

        • Ughhh on 16/10/2016 - 12:57

          @callum9999:

          Is the entire thread about renting to his aunty with expected payments, or is it about giving his aunty free accommodation ? Perhaps you're confused with the birthday thread?

  • robbyjones on 14/10/2016 - 11:54
    +3

    This saddens me, it is not just about the money, this is family. Like others have sad, write the debt off but more than this prepare yourself before telling them it's time to move. Make sure you have good insurance, if your Aunty is selfish and disrespectful enough to not pay rent for a year and think nothing of it she sounds like the type that could be vindictive when asked to leave and may damage your property. Perhaps fib a little and say you are in financial difficulty yourself and need to sell the property and you want to freshen it up prior to selling and they need to move. Give them a date to move out by, in writing, this may sound like overkill but just becuse they are family does not mean they don't have tenancy rights.

  • ItsMeAgro on 14/10/2016 - 12:00
    +70

    Seems clear they are screwing you, but if you really to want to be nice about it anyway, how about this:

    "I'm so sorry, Aunty, but I can't afford to rent that place out anymore, I have to sell it."

    Then once they are out:

    "You won't believe this, turns out someone was willing to pay $500 a week for that place! So I was able to keep it after all! Boy was I doing you a big favour all those years, ha ha ha!"

    • MagicWhip on 14/10/2016 - 14:54

      Yes I agree with that.

      • twoface41face on 14/10/2016 - 15:45
        +5

        why not just say that you can't afford the place while receiving no rental income and then ask them to start paying or leave?

        • MagicWhip on 14/10/2016 - 16:17
          +1

          From the story it is clear that it is a sensitive situation due to the fact that they are family.

          If they were not family it would be different

        • callum9999 on 14/10/2016 - 16:40
          +2

          @MagicWhip: In what way? I don't think anyone is thick enough to believe that story! You might as well be honest from the start, not being able to afford losing $24,000 a year is hardly unbelievable.

        • MagicWhip on 14/10/2016 - 16:41

          @callum9999:
          In what way is it difficult to evict family members?

        • callum9999 on 14/10/2016 - 17:42

          @MagicWhip: Sorry that reply was meant to be to the original post by mgowen! No one is going to believe they have a rental house yet have no idea what normal rental rates are. If someone attempted to insult my intelligence by thinking I'd fall for that, I'd be much more annoyed than if I was told the truth.

    • JediJan on 14/10/2016 - 17:13

      That's a total Aggro way of doing it. Well done!

    • Skinnerr on 15/10/2016 - 17:08

      That's one way. My suggestion if OP really wants to keep his relationship intact would be to drastically drop the rate as a 'last chance' deal to something very generous like $250 p/w with the proviso of working back up to an acceptable rate eventually and then write up a real lease that she has to abide to. They are taking OP for a real ride and its not fair so he has to protect himself in the future.

  • tomsco on 14/10/2016 - 12:01
    +6

    Just another thought… If you're concerned about them not being able to afford to rent elsewhere… think of it this way… They've had the opportunity to save up a 12 month buffer. That should easily cover them.

    • zealmax on 14/10/2016 - 17:21
      +10

      They saved up for 12 months and went on a $9000 holiday.

  • MilkDrinker on 14/10/2016 - 12:19
    +2

    The 12 months old rent is gone, no getting it back, you can ask them to start paying rent saying you gave them a year "free" but if they cant afford it get rent assistance (up to $110 extra a fortnight? possibly each?) if they havent already been claiming that and NOT paying rent.

    Being generous to family is fine but after a year it would seem ridiculous if they weren't your own kid and even then most parents claim rent.

    Did they even give a bond? Mixing business and family can be messy.

    • JediJan on 14/10/2016 - 23:07

      Parent and child cannot both claim rent assistance for the same property; so it is only one of them receiving this. If child lives somewhere else only then could he claim rent assistance. I have heard of families parting ways if the child pursues further education, in part because of their financial circumstances.

  • Randxyz123 on 14/10/2016 - 12:29
    +6

    Send them a letter of demand.

    Give them a month to get out or pay up. AT LEAST 6 months worth of what they owe.

    If they ask tell them that you need the money and have decided to rent it out properly.

    How the f*** can they drop 9K on a holiday and not pay you for rent. They are taking advantage of you. It really pisses me off when this stuff happens. You try and do something nice and people screw you over.

    It is fine to rent to friends or family but do it through a agency. Have them manage everything. Yes it costs more but this stuff won't happen. Also this is partly on you for letting it go for a year.

    Have you got a rental agreement or contract or anything? I freaking hope you do!!!

    First thing Monday call a few agencies and start the process of renting it out properly and hopefully recover some of your money.

    I really feel sorry for them.

    Why? Your cousin spent 9K on a overseas trip, he can afford to pay.

    • Powershopz on 14/10/2016 - 15:55
      +5

      "It is fine to rent to friends or family but do it through a agency. Have them manage everything. Yes it costs more but this stuff won't happen. Also this is partly on you for letting it go for a year."

      This is how we've managed deals before in the past. You'll lose 4-7% of that income due to the property management taking a cut but it's worth it to not have to deal with the bullshit of chasing up rent.

      • JediJan on 15/10/2016 - 13:28

        And I believe you can claim, as a valid rebate, real estate agents fees, against any rental income. I may be wrong on this though; best to check. If not, well, it should be.

        • boredrandom on 15/10/2016 - 20:15

          You're right about this.
          You can claim any management fees, repairs (but not improvements), interest on the mortgage, borrowing fees etc. as deductions when you're reporting your rental income.

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