Has A Property Of Yours Ever Been Abandoned?
One set of circumstances that property managers and self-managed property investors may encounter is the property that has been abandoned by a tenant.
Dealing with a property that has had the tenants leave without notice can be very difficult, but it must be noted here that in dealing with this situation property managers must take the right steps legally so that there is not problems at a later date.
How to tell if a tenant has abandoned a property
- the tenant cannot be contacted by phone – the phone or phones have been disconnected
- the property looks to be in a state of disrepair – lawns and gardens are not keep tidy
- the rent is in arrears
Abandoned property
Check with the laws in the state where the problem arises, but for instance in Queensland this is the procedure:
- the normal 24 hour notice needs to be given to enter the property
- once the property has been inspected by the property manager and reasonable doubt exists as to whether the property has been abandoned a Form 15 Abandonment Termination Notice must be issued or an application can be made to the Queensland Civil and Administrative Tribunal (QCAT) for the premises to be declared abandoned
- if the Form 15 is issued then 7 days must elapse for the tenant to dispute the notice
Abandoned Chattels
If a tenant has abandoned the property and has left chattels at the property care needs to be taken to see that the correct steps are taken in dealing with the property.
- if there are personal documents they must be returned to the tenant within 7 days
- if the tenant cannot be contacted then the personal documents must be handed over to the Public Trustee with 7 days
- goods up to the value of $1500 that are unsafe to keep or store or would not cover the cost of moving and storage can be disposed of
- contacting a second-hand dealer for an inventory and valuation would be the best way to deal with this situation
- goods that do not meet with this criteria should be stored by the property manager for at least one month and then using the proper procedure the goods can be auctioned
- proceeds of the sale can be used to cover any costs of sale and storage, but any excess funds recovered must be paid to the Public Trustee within 10 days of the auction date
In all cases it is imperative that good detailed paperwork be kept. The tenant will have certain rights and they must also go through the right channels to lodge any objection.
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