you've got to have a sense of humour OR a big baseball bat!

[Nobleone]

Hi All,

Just thought I might share this gem with you for no other reason than sharing and maybe getting it off my chest.

3-brm place in Hawera, PM1 puts tenant in early December, tells me it's a nice old lady who loves gardening.

Turns out that nice old lady is not actually moving in but is guarantor signing for her neice and neice's boyfriend to move in.

PM1 shortly discovers that occupants are having everyone they know and their dog living with them, PM1 enforces contract condition re allowable occupants. Then the rent payments start to get missed or only half paid. PM1 does not inform me of any of this.

Eventually PM1 serves them notice to vacate. At this point PM1 tells me the whole story, I fire PM1 and engage PM2 explaining the problem tenants and disclosing full details.

PM2 says she would never have rented to these people in the first place as their 'name' is not good around town.

Anyway PM2 says look I'll keep a tight reign on them and if they don't keep up their end of the deal they're out. I says OK do what ya gotta do.

Shortly after PM2 tells me that she's had enough and has served 10-day notice. Fine I says let's get rid and try and put all this behind us.

PM2 last week goes to check property to see what needs doing before new tenants can be shown around... She discovers that property now has squatters!!!

But not just any squatters, our squatters turn out to be the aforementioned niece's boyfriend (niece has done a runner on him and us) and a few of his other lowlife mates.

PM2 calls me imediately to let me know the good news! Seems the local boys in blue can't do anything without a court order to remove squatters even though they smashed a window to gain access (break & entering) and said squatters are there without permission (trespassing)

Application for court order has begun processing, should be ready to execute March 31.

Now where did I leave my big baseball bat?

On the upside... PM2 now tells me that rent can be increased by $15pw... Oh the joys of property investing.

Cheers, Nobleone.

P.S. Guess who'll be getting landlords insurance as soon as this mess is sorted out... Yes, I'm still smiling.

[AustinWong]

Maybe we need to set up the Propertytalk Vigilanties group or something and do a kneecapping round.

Muaa haaa haaa!!





But seriously...what a bloody terrible situation to be in.

What was the name of PM 1 if you don't mind sharing. might be good to avoid this person if I buy in Hawera. Feel free to send me a PM if you don't feel comfortable posting it for general viewing.

Cheery

[Nobleone]

Hi AW,

I have no problems sharing PM1's name in public.

It was Jenny Judd from Taranaki Farmers First National RE in Hawera... I used her to start because the property was bought through them.

Cheers, Nobleone.

[Muddle]

Your post rang some bells Nobleone.

My sister has a rental in Hawera, AND it was in the hands of Jenny Judd. She had a very similar experience with a lady tenant whose initials are SA. Once finally evicted the damage bill came to $3,700 alone, excluding back rent owed.

When my sister recieved the damage quotes she stormed into Jenny Judds office, placed the quotes on her desk one at a time, and said " I ain't paying for this, I pay you to look after my property ". The language was a bit more colourfull as you can imagine. After several minutes of glarring and silence Jenny relented and agreed to pay the damage bill which she has done. Hoping to recaim the money owed via the tenancy tribunal. How she went I could not tell you.

There are only two PM in Hawera so your choice is very limited. Plus with gas and oil found recently and Hawera being the closest city, you are in a good position to get capital gains from your property. Good luck but I would not write Jenny off just yet.


I am tempted to get my sister to collect my depts after hearing that story. The only time I have heard of a PM paying the damage bill. Perhaps it was a once off. Has anyone had a similar experience ???


Can not understand why there is no database available to landlords. The vast majority of these problems would dissapear.

Barry

[Glenn]

All of the facts are not there to make a total judgement but I recon PM2 was not exactly onto it either.
She should have been able to figure out the difference between a squatter and an invited quest.
How come she only issued a 10 day and not a 90 day termination notice along with an application to the tribunal re the 10 day notice.
If I read the story correctly she would have been entitled to seek a Possession order.
Possession order applications are regarded as urgent and so she should have been able to get a tribunal hearing real quick.

I found a squatter in a vacant house recently. The police took him away and as part of his diversion punishment he had to write a letter of apology to me.

[LondonKiwi]

Guys

As an aside can those people who have investment properties in these type of locations (e.g rural towns) confirm what the typical vacancy rates / bad tenant chances are on average?

I have my investments in high capital growth areas and until recently have never considered the more rural areas for investing in. However after reading Steve McKnight's book and various forums from people who have invested outside of the main cities it has opened my eyes a little. The main concern I have are the vacancy rates and the potential for bad tenants which aren't usually discussed in books or on any financial spreadsheets given on the property deal websites. Reading these type of forums does give me a good insight but I don't know how widespread these issues are.

Any thoughts on this appreciated.

Cheers


LK

[wada]

Hi,

Nobleone... The PM's in Hawera have been living there for ages and know who the crap tenants are. I wouldn't trust them to chose tenants, however actually managing them would be fine (as you would have chosen the good ones).

I left Hawera 12 months ago and due to my job I know who would be a good tenant or not. So if you want send me their names via private message and I'll give my opinion on them. That goes with other forumites who have IP's in Hawera. There are still alot of good tenants in Hawera wanting good accomodation so there shouldn't be any excuses for the PM's to find them.

A side note we sold one IP that we have had for 3 years and made a 80% profit.

Wada

[revdev]

Hi LK,

I have IP's in the Wairarapa (probably fairly high on your rural scale!), so I'll try to help..
Contrary to what you may think (or fear) vacancy rates in our area are quite managable. Average tenancy for my IP's has been around 18 months or so. On the two occaisions I have been looking for tenants, both properties were empty for 2 weeks. I budget for this level of vacancy per annum, so I'm comfortable with it.
Remember these areas also have teachers, police, nurses etc..Good professional people who have made good tenants.
Although I manage my properties, I do use the services of a PM to screen and find suitable tenants. She is very good and knows her market well. Obviously not all are created equal as Nobleone has been sharing with us!!

I guess a varible too, is the general standard and presentation of your IP's, irrespective of where they may be located.
If you know your market and purchase accordingly, then present it back to the rental market as well as you are able...you are going to come out on top more often than not.

Hope that helps!

Cheers,
G

[Gypsygirl]

Hi London Kiwi,

I agree, it depends on where you have your properties. We have 3 in Ashburton (an hour south of Christchurch). There is a huge industrial base here, not to mention a large amount of dairy farms and a large worker shortage. I think the unemployment rate in the area is about 1% (but don't quote me on that) Needless to say, also a huge shortage of rentals too. The rent is lower than in the cities, but so are the house prices. Capital gains are in the median range. It depends on what your focus is, you would get better capital gains in the cities, but you may find you can find an affordable house with a good yield in the smaller ones.
Hope this helps.