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Home / Bay of Plenty Times / Property

Disastrous tenancies sour landlords

By Julia Proverbs
Bay of Plenty Times·
2 Aug, 2013 11:00 PM3 mins to read

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With retirement in mind, they bought two rental properties.

But 15 years after purchasing the first one, and having not yet retired, they are selling it. The second property will likely follow suit. The reason - bad tenants.

The Tauranga couple, who did not want to be named because they are trying to extract money from former tenants, are $19,000 out of pocket, after three disastrous tenancies.

There was the tenant who paid sporadically, falling behind in rent to the tune of $7000.

The Tenancy Tribunal ruled that she pay the money but to date they have not seen a cent.

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Then there was the house that appeared to have been used to make methamphetamine, costing the owners $5000 in testing and decontamination. While the house appeared in good condition, its secret was revealed when a friend, who is a policeman, lived there.

"He suspected some of the tingling feeling on their mouths and fingers was due to chemicals in the house."

Testing identified ingredients used to make methamphetamine.

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The tenant argued at Tenancy Tribunal that the house was like that when she moved in and, because it could not be proved otherwise, she was not required to reimburse the owners for the costs incurred.

Thirdly, the earnest, but financially struggling tenants who could not afford the rent and moved out, owing $7000.

"They were genuinely destitute. We are expecting to see some money. We know their circumstances."

That house has gone on the market and the owners have no intention of renting it again.

They have kept their other rental because the current tenants were recommended by family but once they move on they plan to sell that property, too.

The couple said they did all the right things and one of the tenants was even vetted and selected by a property manager.

They are unsure about what they could have done differently.

"Call us stupid. We are a bit too trusting ... It's taught us a lesson."

While the couple are mortgage-free, she, 60, was made redundant last year. Her husband, 63, is still working, but the rental incomes were part of their retirement plan.

"We're not struggling but that's because we've been quite careful with our finances throughout the years. It's more, for me, the disappointment ... it's a comment on society."

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Teena Bailey and her husband, of Te Puna, have had a similarly bad experience. They are owed $2000 after a Tenancy Tribunal hearing, but don't know where their former tenant is and fear they will never see the money.

They took on the tenant, through a property management company, but when he stopped paying rent they sought help from the tribunal to have him evicted.

They also found cannabis plants growing on the property, for which he was convicted, and the house was left with rubbish that needed to be removed and repairs to be done.

"He had the gift of the gab. I guess all tenants can do that. They tell you what you want to hear," Ms Bailey said.

The house was their family home for 23 years and they rented it out when they moved to the country.

"We didn't want to sell the house because it was in a great position and we didn't know if we would like being in the country," she said. "I don't know why people want to be landlords. It's geared against landlords.

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"In some ways I hope I never see him again but in other ways I'd really like to know where he is so I can get some money out of him."

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