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‘How a nightmare tenant left me broke’

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Your Investment Property | 02 Aug 2012, 12:00 AM Agree 0
Queenslander Tonya McGinley explains how a tenant of hers punched and defecated his way to ruining her finances
  • B | 02 Aug 2012, 01:10 PM Agree 0
    You have to check all landlord insurance. I had my tennants do something similar and there were some things that I wasn't covered for yet I thought I was. Such as loss of rental income and intentional damage. I was told there was a loophole in the insurance policy I took out. Yet when i initiall took it it out, I was told I had the best cover -NOT a total fabrication. NOT HAPPY. I would love to know of a good landlord cover to take out. After all it is a tax write off so paying the insurance to have piece of mind, was something I was always willing to do. Which what I thought I had done.
  • Darren | 02 Aug 2012, 02:28 PM Agree 0
    this is why we should make all tenants sign over their first born children - they are scum and not to be trusted!
  • Anonymous | 02 Aug 2012, 09:16 PM Agree 0
    That's why investing in property is a terrible idea. Fully franked shares are a much better proposition. When's the last time Woolies rang you to say 'the water heater is broken'? With share you have none of these hassles but still get better yield than on property. Plus no stamp duty of thousands of dollars to the government. If capital growth is the only reason you invest in property then I hope you have a back up plan.
  • The Good Egg | 02 Aug 2012, 09:25 PM Agree 0
    Very harsh Darren and unjustified. The best tenant we have ever had was a single aboriginal woman with 3 kids.
    Tonya's first mistake was letting them in without a bond. If you cannot afford the bond it proves you are close to the bread line. Not having the correct insurance is a biggy too. And hindsight is a wonderful thing. Have to say that we were suckered in once and it cost us too. Holes in the walls seem to be popular!
    All by the book and very professional now and we do not get involved with our tenants.
  • Ted | 02 Aug 2012, 11:20 PM Agree 0
    I don't understand why he would have removed the tap fittings?
  • Jules | 02 Aug 2012, 11:21 PM Agree 0
    Um, yeah, I don't understand why you didn't just get landlord insurance
  • Geoff | 03 Aug 2012, 08:08 AM Agree 0
    Owning a Real Estate Business with a rent roll i always advise owners the amount they pay an agent to handle there property is a safer way than doing it yourself, at least we have the tools to check out applicants very extensively, in saying this you also need to do your own checks on the agency to make sure they are going to look after your investment.
    As for insurance try TICA they seem to have a good policy
  • JM | 03 Aug 2012, 10:48 AM Agree 0
    In the last year, several applications have been made to VCAT for our 2 investment properties. The first application was for a tenant who absconded after a month. Our other tenant was in arrears by over 2.5 months and before the hearing paid a majority of the arrears and was ordered to pay the remaining arrears and one month in advance. Then the tenant got into arrears again earlier this year and left the property. So back to VCAT to claim arrears and $900 worth of cleaning and repairs. Our other tenant left the property in a mess and damaged so currently we are in the process of getting the house habitable. Another VCAT claim and more expense. This doesn't include another VCAT claim that was rejected because the managing agent made an error in the application. This same agent said that a final inspection had been carried out on the property and that everything was fine, hence the $900 cleaning bill. The agents have recommended that we claim on our insurance policy. Why? Isn't it their job to ensure that regular inspections are carried out and to pursue the arrears? Why should we pay increased premiums for their neglect? We are now in the process of changing agents. A new company who is looking to extend their rental database. They will waive their fees for the first 6 month, after that their rates are still 1% cheaper than what we are currently paying. I have been liasing with their rental manager who is appalled at the service we have been receiving. She has had to go to her sick mother and now I am dealing with the director of the company. It has been refreshing to have prompt and direct answers to my questions. I don't want to be spending more time managing the properties than I do on my work during the day so I hope this will be a step in the right direction.
  • Pascoe | 03 Aug 2012, 06:36 PM Agree 0
    Alarm Bells should of started ringing when they said they couldn't pay the bond.
  • Olga | 11 Sep 2012, 02:30 PM Agree 0
    I had a tenants do this and because I don't have current addresses, am unable to claim the bond for unpaid rent, let alone charde them for damages. I must admit like this story I fell for the my poor homeles children story. Children, they were monsters.Darren, honest my last tenants i don't want the first born child, they are already hardened criminals. LESSONS WERE HARD LEARNT, NEVER, NEVER, EVER, EVER, GO AGAINST YOUR REAL ESTATE AGENTS RECOMMENDATIONS NOT TO TAKE ON A TENANT. 4 WEEKS LATER WE NEARLY HAVE THE PLACE REPAIRED AND PRESENTABLE.
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