- Tenants stopped paying their rent
- A tribunal ruled the property belonged to the renters
- READ MORE: Aussie renters slam landlord for 'absurd' request
By Pranav Harish For Daily Mail Australia
Published: | Updated:
A landlord who was being treated for cancer was left more than $6,500 out of pocket after heartless tenants stopped paying the rent.
The landlord, a father aged in his 50s, was receiving treatment for brain cancer, when he decided to sell an investment property he owned in Clyde, in Melbourne's southeast in June 2023.
The four-bedroom home had been rented out to a family since 2020 and the tenants were charged $430 a week in rent, which they frequently did not pay on time.
The landlord put the property up for sale in a bid to support his family due to the ongoing massive costs of his treatment.
The tenants were given 60 days to find a new place to live after they were handed a notice to vacate the home.
But they refused to leave and in September last year they stopped paying the rent altogether sparking a lengthy battle in the Victorian Civil and Administrative Appeals Tribunal (VCAT).
A landlord in Melbourne was left more than $6,500 out of pocket after tenants who lived in an investment property he owned stopped paying rent (pictured stock image)
VCAT ruled that the tenants did not need to move even though they had stopped paying rent and the property had been listed for sale.
The tenants argued it was 'their home' and their children attended school nearby so it would inconvenience them.
The landlord therefore was not allowed to repossess the property and was forced to sell it with the rental agreement in place and the tenants still living in the dwelling.
The property was eventually sold forcing the tenants to move out prior to settlement with the new owners, but they still haven't paid the hefty $6,500 in rental arrears.
Ray White property manager Hannah Taylor, said her client went through an exhausting regulatory process to have his matter dealt with.
'We had numerous VCAT hearings trying to get the arrears, but unfortunately the member just continued to side with the renters,' Ms Taylor told Yahoo News.
'The landlord was going through treatment. We even had to supply medical documents to the courts to be able to prove that, whereas the renter didn't supply a single document and was let off.'
The landlord ended up being locked in a eight-month long battle with the tribunal before a warrant of possession was finally granted.
When the police executed the warrant at the property, the tenants had already left the home and the rental was settled the next day.
Ms Taylor said she was forced her to take time off after the property had been settled.
Ray White property manager Hannah Taylor (pictured)said her client went through an exhausting regulatory process to have his matter dealt with
'Even as a property manager, taking on that stress for them was massive. I had to take mental health days just to cope with it all because we were not getting the outcome that we needed,' she said.
The unaccounted expenses forced the landlord to finance the mortgage repayments himself.
His insurance was not able to cover the cost of the repayments due to a loophole.
He also had to pay the cost of having his matter dealt with by the tribunal, including almost $400 in application fees and $500 for the tribunal hearings.
Ms Taylor urged for financial assistance to be given for landlords and those who own properties, who are struggling to make their repayments.
She said landlords don't have the same access to funds to cover their financial obligations like renters do.
Ms Taylor also said tribunals need to consider the situation of a landlord in a rental agreement and said they should have the right, to evict a tenant who does not pay their rent.
Rental providers in Victoria, can give tenants a 14 day notice to vacate the property if their rent is overdue by two weeks.
Daily Mail Australia has contacted the VCAT for comment.
What landlords can do if tenants don't pay their rent?
Send breach notices to the tenants: These notices inform renters that they haven't paid their rent.
Terminate the lease and request that the property be vacated: The property owner can take this action if the tenant does not pay their rent after being issued with a breach notice.
Get a court order: Property owners can submit an application to a tenancy authority to request a court or tribunal hearing if the tenant does not vacate the property.
A warrant of possession and if necessary an eviction order may be granted to direct the tenant to leave the home.
Retain the bond: Property owners can request the local tenancy authority to refund them with the bond money to recover some of the cost of the lost rent.
Make an insurance claim: This must be done as soon as the tenant vacates the property as the insurance claim cannot be processed until then.
Property owners are urged to have copies of inspection reports and breach notices with them to supports their claims.
Source: yourmortgage.com.au
