Mikaela’s tenants are $8,000 behind on rent. But a ‘baffling’ ruling means they cannot be deported
A homeowner has been forced to work extra shifts to pay two mortgages after a court ruled her tenants could not be evicted despite being $8,000 behind on rent.
Mikaela Cowan, 31, rented her two-bedroom townhouse in May 2023 to a family of four who began falling behind on rent payments eight months later.
The nurse, who bought the Mill Park investment property in Melbourne’s far north-east before the pandemic, is now facing financial difficulties as a result.
“For me it was an incredibly stressful situation,” Ms Cowan told the Daily Mail.
“They are currently in arrears of about $8,000 and meanwhile I’m a single, 31-year-old nurse on one income paying two mortgages, which just keep going up with every interest rate increase we’ve had.
‘I have had to postpone financially related plans and work extra shifts to pay both my mortgages.’
Ms Cowan, who currently rents a one-bedroom apartment, has put tenants on four payment plans but says they continually fail to pay.
She also gave the family 60 days’ notice last October.
A homeowner has vowed to ‘never rent in Victoria again’ after struggling to evict her tenant despite being thousands of dollars behind in rent
However, she said the Victorian Civil and Administrative Tribunal (VCAT) supported the tenants based on their family circumstances and timing.
“His wife was pregnant so couldn’t work and he was struggling on one income,” Ms Cowan said.
‘It was also decided it was too close to Christmas so they could stay in the property.
“During this time, not once did the tenants contact me or my property manager regarding financial issues.”
She said the tribunal found the tenants were trying to follow the payment plan.
“One example is the payment plan said they owed $4,600 within a week,” Ms Cowan said.
“They paid $1,300 and VCAT said ‘they were trying’ so they were allowed to stay.”
Ms Cowan said the eviction notices she filed appeared to have no effect and the rules were unfair for tenants compared to landlords.
The nurse bought the Mill Park investment property in Melbourne’s far north-east before Covid after a break-up
“There are consequences for me if I don’t pay my mortgage, and I feel the same doesn’t apply to renters,” Ms Cowan said.
‘It’s one thing for them to do the wrong thing, but to then have a system that allows them to do that is completely ridiculous and unfair.
‘Tenants now have all the rights and it seems to be getting worse year after year.’
Ms Cowan believes the whole system needs to be overhauled and said if common sense had prevailed, tenants would have left by now.
“The decisions they are making are completely baffling and nonsensical,” she said.
She has also given notice to the tenants to leave, because she wants to move back into the building due to financial problems.
If that works, it won’t happen until mid-June.