Tenants smoking inside?

[David_W]

My Tenancy Agreement stated no smoking indoors - did my bi-monthly inspection (a bit earlier due to late payments) and smelt a strong pungent marujuana stench from my freshly painted from my new dodgy tenants (or their friends) .

Took them to mediation over this and some minor amount of arrears and despite much pleading they got told to stop smoking inside.

Another inspection one month later and I saw one of them smoking this time just a normal disgusting cigarette INSIDE ==> took them to mediation again, and another wet bus ticket mediated order to try to smoke outside?

I would have them removed after due notice but the surplus cashflow is over $130 per week, despite 80% gearing in Auckland.

Has anyone got any advice or similar experiences?

Cheers
David Whitburn

[GreatPig]

Could you perhaps tell them you'll have to raise the rent by $20pw to cover the eventual costs of cleaning and repairs (from likely cigarette burns)?

Is there any chance you'd actually be able to do that?

If so, then either they'd stop smoking, move out, or you'd at least be getting more rent.

GP

[David_W]

They are 3 months through a 1 year fixed tenancy agreement. The rental assessment from two property managers at the time I bought it was $270-$290, with current rental at $270 per week.

With $15,000 and a big makeover I got a rental assessment from $335 - $360 per week, and now have it rented for $400 per week! I have also cut off their back yard for their dog to construct a minor dwelling for more cashflow (and put up a 1.8m high fence to protect my tenants privacy).

So I can't raise the rent currently anyway! On a standard periodic tenancy under the Residential Tenancies Act 1986 ("RTA") this would be less of a problem. The RTA allows me to put up the rent after 180 days, and I would do this by $20 to $25 to have them stop smoking, or increase their bond, or they would leave.

Any other ideas?

Cheers
David

[GreatPig]

David,

Wow, sounds like you have a good rent deal going there.

Is anyone actually complaining about their smoking indoors or are you just concerned about damage to your makeover?

And how easy do you think it would be to relet it at that same rent if the current tenants moved out?

GP

[David_W]

Hi Great Pig

The neighbours have complained to me re their marujuana use and why they have their curtains pulled during the day. I did visits every two week for a little while and they just left them pulled for no particular reason - there was no P lab as my neighbour was concerned about. :P

Also their smoking has left marks on the makeover and the stench has got into the wallpaper and ceiling! I want the bond to cover rent arrears (for when the tenants do the typical non payment of the last three weeks {or whatever the bond is}).

It would be really difficult to relet the property at $400 per week again - $350-$360 is market rent and is realistic.

Kind regards
DAVID

[170plus]

Sounds like a great property and rental deal while it lasts. Is the $1380-odd (give or take fees and tax) you are getting above market rent worth the grief and will it cover the refurbishment costs (which includes the property not being available for rent)? If not, chuck 'em out.

What re you going to do at the end of the fixed tenancy if they want to stay?

On the other side of the coin, if the damage is done leave them in and fix it later.

OSP

[David_W]

The tax profile of the property is good with a chattels appraisal being done on purchase and the refurbishmentsbeing capitalised and depreciated. Therefore the tax is of benefit to my holding entity and the damage the tenants are likely to do will be covered by their bond and if necessary taking the tenants through the disputes procedures.

I will probably not renew their tenancy.

Cheers for the comments.
DAVID