Evicted Tenant Won't Leave

LDreadPirateRoberts on 03/11/2021 - 21:38
Last edited 03/11/2021 - 23:18 by 1 other user

My "friend" has an investment property that they have rented out to a tenant.

The tenant owes $9k+ in unpaid rent and has been to VCAT once already (VCAT ruled that they couldn't be evicted due to the COVID moratorium). Since then, they still have not paid enough rent and now the property manager has sent them an eviction notice. The tenant is abusive and unruly toward the agent and hasn't left the property (eviction date was late week as per notice). Another VCAT hearing has been organized for whatever the next step is but it got me wondering.

If the tenant isn't going to leave (very likely), how do you get rid of them? Pretty sure cops won't do anything.

Poll Options

  • 320
    The police will nab him and throw tenant to the curb
  • 33
    Tenant lives in the property indefinitely, rent and worry free
  • 136
    Landlords suck and are leaches on society. Good on the little guy for sticking it to the system!
Home & Garden

Comments

    • ModdySwag on 04/11/2021 - 13:57
      -1

      Look up. Answered.

    • funnysht on 04/11/2021 - 18:21
      +3

      Ozbargainer

  • john_conner on 04/11/2021 - 14:32
    -1

    I just want to say to buy landlord insurance to mitigate this risk. And choose tenants carefully

    • funnysht on 04/11/2021 - 18:22

      Patented eviction notice…sounds tempting

      • Hangryuman on 05/11/2021 - 13:30

        sounds tempting - how would you like to pay ?

        how does it work - oh, uh, it's still … unh, 'in development' - 'your call is important to us - please hold …'

    • DreadPirateRoberts on 04/11/2021 - 22:49
      +1

      How much blockchain and synergy does the tool provide? Will only use it if it comes with a shitcoin to lose more of my money on

    • [Deactivated] on 04/11/2021 - 23:41
      +2

      Name checks out.

      Also, new account, first post, based in New York.

      I don't think they realise this is an Australian website. It might work there (or not, especially as it seems like a scam), but it won't work here.

      • Nalar on 05/11/2021 - 11:26

        Whoosh!

  • jmi on 04/11/2021 - 17:27
    +1

    Looks like TICA, Equifax and TRA are going to be the tenants' new friend for the next 3 years.

    When will people learn that actions have consequences?

    • funnysht on 04/11/2021 - 18:23

      Quite sure his profession doesn't rely on those usual services to get credit…

      • jmi on 05/11/2021 - 09:13
        +1

        These services are not for credit. They maintain a tenancy blacklist that is shared among all REAs. If you are listed in any of those 3 agencies above, you are pretty much stuffed in finding another place for rent.

    • leiiv on 05/11/2021 - 02:09

      Well, they do. In fact, these kind of tenants know the system very well and work the "consequences" to their advantages.
      This is systemic issue. Bad systems has consequences as well.

  • smashman42 on 04/11/2021 - 18:57

    Is selling the place and buying a replacement viable seeing as the VCAT option looks like it would potentially take years?

    Sure it is bound to take a loss with them likely trashing the joint, but how big of a loss is the 6mths+ of extra time for them to ruin shit while not paying their rent going to cost, plus the stress of it?

    • funnysht on 05/11/2021 - 09:10

      Dont think think the renters would play nice or even open the door when ppl come to inspect the place?

      • ripesashimi on 05/11/2021 - 14:04

        I mean until evicted, they have leasehold interest right? REA has to notify them beforehand and cannot be too frequent either.

  • baldur on 04/11/2021 - 20:53
    +1

    You pay lots of fees, taxes and charges when you buy a property, yet government doesn't support you even if you are rightful. Seems like it is time do your own justice.

  • Thatsgold on 04/11/2021 - 21:52
    +3

    I will never understand how there is a law that protects this scum.
    Owner should be able to punch the shit of this scum and kick him out.

  • mecusherb on 04/11/2021 - 21:55
    -4

    EAD Land Baron!

    • DreadPirateRoberts on 04/11/2021 - 22:52
      +2

      Will be doing a lot of that at the M1 underpass to pay the repair bills when the place is trashed

  • fullmetal on 04/11/2021 - 23:16
    +1

    Bikies no longer the solution for ozbargain community's problems? Time have changed.

  • drfuzzy on 04/11/2021 - 23:52
    +8

    Hard to believe 30% of poll responders think that landlords suck and are leaches on society.
    I wonder what sort of utopian society they believe in.

    • MrFunSocks on 05/11/2021 - 15:20

      Yep it's pathetic. I'm now a landlord myself after recently renting out my first home that I owned and lived in for 13 years. Does that make me a leach on society? Should I be forced to sell the house for a low price, taking a loss, just because I bought a new house?

      What is it with a large percentage of ozbargain and thinking that they deserve a free house to live in? I guess it probably comes with the territory of being a website made for people to get things on the cheap.

  • Venustrap87 on 05/11/2021 - 07:49
    +4

    I would skull dragged him out of the property my self.

  • Dack Smith on 05/11/2021 - 11:06
    +2

    The “law” is skewed towards tenants, as befitting Australia’s past convict and squatter history.

    The government loves to support and encourage scum behaviour lol

  • madbunny on 05/11/2021 - 13:11
    +12

    Wow OP, this is a really shitty situation.
    I also own an IP and can empathise with your struggles. Our tenants contacted us last year to request a rent reduction as their work hours were reduced due to lockdowns.

    Thankfully I am in a privileged position so I was more than happy to grant them a reduction for two months to help them out, however, I found it a bit rich that I was given NO government support, NO reduction in council or land rates. NADA. I thought we are all in this together. No? I also found it pretty amusing that the state government and the relevant tenancy body were strongly urging tenants to only request a reduction and not accept a deferral. I don't remember hearing the government asking banks to issue their customers a reduction on their interest rates, it was just defer and let the interest build up. I'm pretty sure the banks received a good amount of support and

    While this didn't apply to me as I don't have a mortgage on the property, I'm sure there were many landlords who really struggled during this time and may have depended on the rental income. There is always risk in any investment, and you never know, house prices could go down and I would lose out, but that's a risk I was willing to accept. But when the government implements something as radical as a lockdown and memorandum on evictions, which impacts me, then refuses to provide any equitable support across the board, then it's something that's simply too hard to factor in.

    It's not on me to provide social housing. The government can and should do that, along with stabilising the real estate market for both renters and prospective home owners. I simply don't understand the extreme views that some have shared in this post. I've also previously rented and I can understand the struggles with rent increases, periodic inspections, having to move when the property sells, not being able to make a place your home, and really it stinks. I'd be more than happy to embrace a more stable approach to housing, similar to what happens in Germany, where long term multi-year leases are the standard.

    All the best OP.

    • smashman42 on 05/11/2021 - 17:15
      +3

      It is because so many people are literally locked out of being able to buy their own homes now, they're understandably salty which makes them irrationally (and sometimes totally rationally) lash out.

      And on the flip-side, quite often those lucky enough to have not just got in for their own home but for investments too, don't seem capable of comprehending just how hard it is for those coming after them to actually get into the market now and think they just need to HTFU and they'll magically be able to afford something that isn't over 100km from their workplace.

      So basically both sides largely have a whole lot of the "the other side is an arsehole" preconceptions that primes stuff for arguments, and the various levels of govt have basically done everything they can to make the situation worse for those not old enough or lucky enough to have got in at the right time, which makes the whole thing worse. That mismanagement of not helping landlords is tiny compared to how little they help first home buyers, every program they have to supposedly help only really pumps the market more.

      Also the fed govt's propaganda arm (aka NewsLTD - or is the govt their kickback arm?) spewing bullshit "I bought my first home at 18 and now have 12 investment properties" stories with a small "bank of quadzillionaire mum and dad made it happen" note hidden somewhere most people skimming don't notice, so those that are in have their preconceptions about it being easy backed up while those locked out are infuriated further.

      note: I'm just a homeowner with a mortgage, so I'm kinda in between both groups seeing the mud flung both ways.

      • rektrading on 05/11/2021 - 17:22

        Don't get salty, get even.

        Buy assets that outperform real property. Casually bring it up during Christmas, parties and weddings when comparing portfolios.

        • netjock on 06/11/2021 - 22:02

          Casually bring it up during Christmas, parties and weddings when comparing portfolios.

          Think that is called irritatingly trying to compared your appendage when not asked. No such thing as casually, you might think casually but it is pretty bloody obviously unless you're talking to those with delayed mental development.

      • netjock on 06/11/2021 - 22:00

        It is because so many people are literally locked out of being able to buy their own homes now

        Generally I find that people are just unreasonable. Think of it this way:

        Someone wants to buy in a $1m suburb but only makes $100k income. It isn't everyone pushing it out of reach because you could still buy a $500k property in a different suburb. You just don't want to live there because you have unreal expectations where $100k will get you. Probably still more unreasonable is that person spends all their money renting in the $1m suburb and not happy they can't save for a deposit.

        Find that happening everywhere right now. People having their heart set on stuff they can't afford and complain about it when they don't get it.

        • smashman42 on 07/11/2021 - 04:49

          There is a degree of that, and but that has always been the case. I'm not convinced it is any worse now than in previous generations, I think rose coloured glasses and one's own good luck blinds them to the fact that a) they were lucky, and b) they were always surrounded by idiots that were terrible with money, but the overall economic circumstances used to be much more forgiving of their stupidity. I mean, single income mortgages for blue collar workers in not high paying industries used to be the norm - and back then "blue collar" didn't mean self employed tradies or FIFO workers like it does now, but people working for simple wages in a factory or something, you know all those jobs that don't exist as we no longer make anything in this retarded dig shit up and don't you dare value add to it shithole of a country.

          There is also the issue with the $500k suburbs often being over an hour commute each way, which destroys quality of life. Then of course the jobs nearby the actual $500k suburb only support a $250k mortgage, with the same pattern continuing until you're literally in the sticks.

          If people do that buy in a cheaper place with a huge commute with the plan of it being just a starter house, pump the shit out of the mortgage for ~5yrs to get some equity, then upgrade closer to work when they're in theory ready to have kids that might work out, if they're lucky. It should work, but reality often gets in the way and screws shit up.

          They might be stuck living in their "starter house" forever. They might have divorced due to the shit work/life balance (or just unluckly selecting a shitty partner), thereby trashing their finances. Not had enough career progression/stagnated wages (we have had a decade of that) that don't cover the more expensive better located house, especially with dropping back to 1.5ish incomes to have kids they may even struggle to service what they have and still be stuck with the insane commute, with the kid rearing partner having to work in the cheapo suburb making it more like 1.2 incomes.

          Of course there's selfish idiots that want stuff out their reach, but I'm not convinced that's the root issue here, it's structural problems with our housing and employment systems

          • netjock on 07/11/2021 - 20:41

            @smashman42:

            If people do that buy in a cheaper place with a huge commute with the plan of it being just a starter house

            Either that or find a magic money tree? Or ask your employer to move closer to where you can live in the process affecting probably 20 other people.

            It isn't like I want to live in London since I can't do the commute that I should be entitled to London being closer to me.

  • sir-screwball on 05/11/2021 - 13:22

    That tenant is going to destroy that property before they leave.

  • Hangryuman on 05/11/2021 - 13:28
    +1

    in Sydney we got a Sheriff to physically evict an overcrowded illegal backpackers unit

    the a/hole who was profiting from this and other units (OK before COVID) did not inform any of the 8 mostly-European backpackers in the 3 brm unit who had been partying hard every night after midnight keeping about 100 close high-density neighbours awake and disturbed

    so when the Sheriff's crew arrived at 830am and found them asleep in bed, they were given 20 minutes to get all their stuff outside, whereafter they sat with their bags stunned for a while until major a/hole came by with his minibus - ah, I'll take you to my next property - I think the ATO has probably caught up with him since, could be jail time for that deliberate fraud tax evasion.

    so yeah - get the order from tribunal, then proceed to Sheriff's physical eviction. Change the locks at the same time.

    • netjock on 06/11/2021 - 22:04

      8 mostly-European backpackers in the 3 brm unit who had been partying hard every night after midnight keeping about 100 close high-density neighbours awake and disturbed

      I am surprised why people visit other people's countries like rabid dogs that have been taken off the leash. Have seen Aussies do the same overseas. Have you heard about the story where Aussie expats in Europe tell people they are from NZ when asked due to poor reputation of Aussie tourists.

  • techlead on 05/11/2021 - 14:45
    -1

    This is why I don't understand why people bother with investment properties. The returns are dismal and you get issues like this. I can probably buy that property outright with the profits of just one of the cryptocurrencies I hold and I'd still have money left over.

    I don't get why there's such a delusion with property investment.

    • MrFunSocks on 05/11/2021 - 15:22

      Not all landlords bought their houses as investment properties. A large portion of them, probably the majority, are previous owner/occupiers renting out their houses when they buy a new house.

      I recently did the same, and had to make the decision of selling to get a cash injection now, or renting it out long term and hopefully be able to retire early in turn thanks to the rent coming in.

      • techlead on 05/11/2021 - 20:06

        If I'm going to move, I will just sell the house and buy a new one. Any excess funds will go into cryptocurrency. Its the best asset to have.

        In 8 years, I can retire from my cryptocurrency investments, no messing about with mortgages.

        • MrFunSocks on 06/11/2021 - 13:12
          +2

          Alternatively in 8 years you can be left with nothing but a gigantic loss.

          • rektrading on 06/11/2021 - 14:04
            -1

            @MrFunSocks: The trend is going up to the right. It has been for the last 12Y and will continue for the next 12Y.

            People that think that the trend will break and go down to nothing have NFI.

            • MrFunSocks on 08/11/2021 - 18:26

              @rektrading: You also have "NFI" though, you're just guessing as much as everyone else is.

              Crypto at the moment is pretty much just gambling. Most of them have no purpose, no uses, and will never amount to anything. Betting your life saving on crypto is an absolutely insane thing to do.

              I have a mining rig btw pulling in decent amounts of ethereum, and also have a dozen other coins. At one stage after being 100% up I went to about 30% down in the space of a few weeks, and it's taken months to get it back to the 100% up. Gambling on things like that with big money is crazy.

          • netjock on 06/11/2021 - 22:06

            @MrFunSocks:

            Alternatively in 8 years you can be left with nothing but a gigantic loss.

            Exactly. Bet you the employees in the employee share schemes of Enron, WorldCom and Lehmans thought that before they went bust.

        • netjock on 06/11/2021 - 22:06

          In 8 years, I can retire from my cryptocurrency investments, no messing about with mortgages.

          "can" but not. What are you waiting for? Too greedy to quit.

          • techlead on 09/11/2021 - 09:52

            @netjock: Nope, I enjoy my job, I don't have something which will keep me busy full time if I do retire. Until I find something, I will keep working in a job I like and enjoy. If I stop enjoying that job, I will find another, its pretty easy for me.

    • CrushJelly on 06/11/2021 - 20:28

      Your concept of "profit" is reliant on the comparison of the value of your crypto coin to a fiat currency (E.g. AUD).

      The entire premise of "profit" is that it isn't profit until it is realised. That is, it's not profit until you convert into fiat and realise the capital gains.

      Otherwise, you purchased xx amount of Bitcoin and still hold the same xx amount of Bitcoin. There is no profit in that.

      • rektrading on 06/11/2021 - 22:06

        No.

        There is no need to sell the asset. techlead can wait for the asset to appreciate to $100,000, $250,000 or $500,000 and take out a loan in fiat money. They can then spend it on everyday expenses or buy a house and pay in full.

        But you're right that one Bitcoin will always be one Bitcoin. It's the fiat money that will be worthless compared to sats in the long term.

        https://usdsat.com/
        See how fiat money keeps going down to the right.

        • netjock on 06/11/2021 - 22:09
          +1

          and take out a loan in fiat money. They can then spend it on everyday expenses or buy a house and pay in full.

          First rule about finance is. Don't borrow money for every day spending. Why is it not okay to run a balance on credit cards but okay to do it on crypto?

          You're borrowing against an asset that can go up or down. If it goes to zero like Squid Game Coin then you are left with the loan (same with margin loans).

          Please don't tell people to take out loans for personal expenses asset backed or not.

          • rektrading on 06/11/2021 - 22:13

            @netjock: Investing 101. Never sell best-performing assets for assets that go down in value. Borrow against, get fiat money, spend it, pay it back with income and keep the best-performing assets.

            If it goes to zero like Squid Game Coin then you are left with the loan (same with margin loans).

            Sorry, I don't buy junk.

            • netjock on 06/11/2021 - 22:16
              +2

              @rektrading:

              Investing 101

              Not on this planet.

              Never take on non tax deductible debts.

              Borrow against, get fiat money, spend it, pay it back with income and keep the best-performing assets.

              If you got income why do you need to borrow? Talking about smacking yourself in the face with your own facts.

              Sorry, I don't buy junk.

              Maybe you need to include that in your "financial" advice

              • CrushJelly on 06/11/2021 - 22:34

                @netjock: Lol.

                But fiat currency is guaranteed to be "worthless" in the future, I've been led to believe.

                They must be speaking the truth!

              • rektrading on 06/11/2021 - 22:36

                @netjock: @techlead wants to buy a $2m house and pay in full with fiat money.

                Do they a) sell 46 BTC, pay a crapload of taxes, see BTC 2x in price shortly after selling and cry themselves to sleep.

                Or b) put 50 BTC up for lending, borrow $2.1m at 1% APR interest, service the loan with income, see the house 2x in value and BTC 4x in price after 7Y, sell the house tax-free, repay the loan with the profits from the house and get the 50 BTC back that is now worth $240,000 each.

                I already which option @techlead would choose.

                • CrushJelly on 06/11/2021 - 22:39

                  @rektrading: And what happens when BTC tanks in value, like it did only earlier this year?

                  You're assuming there is only one way BTC value will go - up. But there is another way, and that is down.

                  • rektrading on 06/11/2021 - 22:40

                    @CrushJelly: I BTFD ETH at -50%.

                    • CrushJelly on 06/11/2021 - 22:43

                      @rektrading: Again, you're assuming the value is going to keep going up and up.

                      Nice.

                      • rektrading on 06/11/2021 - 22:54

                        @CrushJelly: I don't assume that the price can't go down in the short term. I look a the trend and it shows that the long term is up to the right. That means that I continue to DCA and BTFD.

                        OZB raid deals all the time. It's a bloodbath when they see a 5%, 10%, 30% or 50% discount.

                        The only thing they don't buy is assets like stonks and digital assets when it's on a 50% discount.

                        • CrushJelly on 06/11/2021 - 23:22

                          @rektrading:

                          digital assets when it's on a 50% discount.

                          This is a lol comment.

                • netjock on 06/11/2021 - 22:53

                  @rektrading:

                  borrow $2.1m at 1% APR interest, service the loan with income

                  If you can't afford it at 2% interest rates like we have now then you can't afford it at 1%

                  You also fail to point out if crypto goes down you get a margin call and your house is on the line.

                  If you borrowed from a bank and housing market goes down 50% long as you can service the loan you are okay.

                  • rektrading on 06/11/2021 - 23:07

                    @netjock: Your post doesn't make any sense.

                    If you can't afford it at 2% interest rates like we have now then you can't afford it at 1%

                    @techlead wants to buy a house, keep the BTC and pay the lowest amount of interest. There is only one way to do this.

                    A 1% APR is only $21,000 1Y. I'm sure @techlead can handle that.

                    You also fail to point out if crypto goes down you get a margin call and your house is on the line.

                    There are no margin call. The loan is overcollateralized and the house is paid in full.

        • CrushJelly on 06/11/2021 - 22:51

          It's the fiat money that will be worthless compared to sats in the long term.

          https://usdsat.com/
          See how fiat money keeps going down to the right

          Also, this comment is hilarious.

          That graph is literally just the price of a Satoshi. As BTC appreciates, USD depreciates. That's basic economics.

          Your assumption is based on the hypothesis that BTC will continue gaining. Unless you have a crystal ball, there's no predicting the future.

          IF the value of BTC is guaranteed to appreciate, you wouldn't even have a single dollar of fiat currency. But you do.

          • rektrading on 06/11/2021 - 23:24

            @CrushJelly: You're right. It's hilarious seeing how much the USD had gone down in value over 10Y and how it continues to go down every year.

            IF the value of BTC is guaranteed to appreciate, you wouldn't even have a single dollar of fiat currency. But you do.

            Every fiat money that I don't spend on bills, food or coffee is being converted to digital assets. Savings in digital assets beats keeping them in fiat money.

  • sydneywest on 05/11/2021 - 15:09

    I had heard of this issue from a “friend” as well
    Where the tenant refuses to pay rent and refuse to move (despite being served a notice to leave)

    What’s astonishing is, the landlord is still needed to make sure the property is fit for purpose to be lived in while it is being squatted on (including any power and water urgent repairs), which feels quite weird for this “friend”

  • newbiesh on 05/11/2021 - 16:51

    i got a feelin OP wants to buy a house and sick of investors and putting this up to scare ppl off from investing into properties.

    • techlead on 05/11/2021 - 21:33

      haha, nice theory, but a thread on Ozb is not going to break people's delusion and obsession with property.

      I don't care about property prices going up because I hold an asset which goes up even faster than property, I can beat any investor to a house I want to buy.

  • [Deactivated] on 05/11/2021 - 19:36

    How will future landlords know not to rent to them?

    • techlead on 05/11/2021 - 21:33
      +1

      There's usually a register where they can blacklist people like that. Not sure how effective that is.

  • Thenarrator on 06/11/2021 - 00:32

    if the property owner doesnt pay strata fees, strata will set up debt collectors onto property owner. If tenant owes 10k in rent, then is eviction the best the property owner can do? cant they go a step further and go to debt collectors? 10k isnt a small amount. Imagine trying to haggle an extra 10k payrise or bonus at your work or the extra skill you have to develop to get that. your tenant just got it for free simply by being an a**hole.

  • GourmetFoodie on 06/11/2021 - 07:36
    +3

    Being a landlord is shit. Never want to deal with that crap.

  • DryScissors on 06/11/2021 - 07:55
    +4

    So glad I sold my IP and don’t have to deal with muppet renters. What a bloody pain in the ass they are.

  • payless69 on 06/11/2021 - 12:32

    9k buys a lot of meth and gives good time to use it. Cleanup is probably 200k plus!

  • MintBerryCrunch on 06/11/2021 - 14:41
    +1

    I personally dont believe in negative gearing - you are betting that property values will rise faster than the tax rebates of interest repayments you save from negative gearing.

    At the end of the day, negative gearing involves NEGATIVE CASH FLOW, which is the ultimate outcome of an investment. Sure, you may sell the property when you retire… but was it worth it tying up so much liquidity for decades??

    There is every possibility Melbourne could be the next California - once people start getting FOMO, you can be sure we are at the end of a cycle.

  • wtfnodeal on 06/11/2021 - 14:51

    Unfortunately if the tenants move out they are likely to become homeless and it becomes our government’s problem which it doesn’t like it and therefore is trying to help the tenants to live in your property for free as long as possible.

    • berry580 on 07/11/2021 - 00:04

      Just deport them to Afghanistan

  • Mikonos on 06/11/2021 - 16:24

    B

  • Trying2SaveABuck on 06/11/2021 - 21:43

    Cut ur losses and let the police kick them out via getting a warrant - hopefully ur 'friend' have LL insurance make the financial loss less painful

  • pompompom on 06/11/2021 - 22:37

    Cut your losses and sell the place.

  • berry580 on 07/11/2021 - 00:03
    +1

    "Landlords suck and are leaches on society. Good on the little guy for sticking it to the system!"

    Lol, quarter of votes was for the above.
    Why are are such people even allowed to browse ozbargain??!

    • Daabido on 07/11/2021 - 06:21

      It is a broad church, as well as a wretched hive of scum and villainy.

  • baldur on 07/11/2021 - 21:47

    it is hard to fathom the hatred over the landlords. they probably worked their ass off for a long time to own those properties yet they are the only leeches in this unfair capitalist system. just comical.

  • ozboygsl on 12/11/2021 - 07:34

    You losy me { and anyone who has ever studied history} at " only the govt".

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