This Melbourne rental home was left in poor condition by tenants who were more than $20,000 in rent arrears. The owners are among many in Victoria reporting bad behavior from tenants.
A cancer survivor and her retired husband are calling for Victoria’s rental laws to be updated as they grapple with a tenant who hasn’t paid rent for months but refuses to leave their backyard.
The couple, aged 67 and 84, have been left devastated by a Victorian Civil and Administrative Tribunal ruling, which they fear leaves them stuck with a tenant owed thousands of dollars in back rent for the granny flat at the back of their home.
Extraordinarily, despite fighting the eviction, the tenant has filed a petition for an intervention order against the couple, which will be decided next month – which has the potential to force them out of their own home.
RELATED: Thousands of Victorian landlords flee prime suburbs over rent reforms
450,000 Victorian landlords face fines and default on rent reform
Australian renters face $10,000 rent increase as landlords said they had to raise price
Kez and Sammy have been renting out the backyard of their home in Melbourne’s north for more than a decade.
Kez, who requires ongoing medical care and surgery due to a series of aggressive, recurring skin cancers, said their tenant owes more than $7,100 in unpaid rent dating back to October 2025.
She and her husband, who suffers from serious heart problems, rely on the granny flat’s $450 weekly rent to make ends meet.
Kez has taken on extra jobs and borrowed thousands from friends to make up the shortfall, as well as water, electricity and internet bills – which they pay for rent.
When the tenant stopped paying rent, they issued an eviction notice, as required under Victoria’s laws, and applied to VCAT for an eviction notice when this was ignored.
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
The Victorian Civil and Administrative Tribunal, also known as VCAT, is located in King St, Melbourne.
According to an initial court ruling, the tenant could stay until February 3 before an eviction notice could be issued.
The tenant requested a review of the decision, and in a second hearing, VCAT vice-president Kylea Campana gave them more than two years to pay the rent arrears, starting later this month.
Ms Campana’s decision also left landlords unsure if or when they would be able to evict the tenant and reclaim their backyard.
Her order states that they can reapply for an eviction notice if the tenant does not adhere to the payment plan.
“Every new development feels like another blow, and the cumulative weight of it all makes it harder and harder to hold myself together,” Kez said.
“We live only a few meters away from the tenant, so there is no escaping the tension or fear.”
![Rental property in Melbourne left in poor condition by tenants who were more than $20,000 in rent arrears - for Herald Sun Real Estate](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 768 1024"%3E%3C/svg%3E)
Tenants who were behind on rent were not cleaning up their homes in Melbourne. Image: supplied.
They started with one GoFundMe are appealing because they cannot afford a lawyer, and their tenant has also since served Kez with an intervention order “based on events that never happened”.
The intervention order could potentially force them out of their own homes if it is passed in full when it comes to court.
Kez now wants her and her husband’s experiences to spark a wider conversation about reform and accessibility in Victoria’s rental system, especially for small-scale landlords.
However, since the VCAT hearings, their tenant has paid rent for the first time since September.
The Herald Sun has chosen to use the alias ‘Kez and Sammy’ for the application for an intervention order.
Ben Kingsley, chairman of the Property Investors Council of Australia, says the number of disputes between tenants and landlords in Victoria is escalating.
Ben Kingsley, chairman of the Property Investors Council of Australia, said while poorly behaved tenants were a minority, Victoria was seeing a growing number using “every trick in the book” in their attempts to stay in rental properties when landlords wanted them to leave.
“And the government has backed them with further rental reforms that make it very difficult for owners to have control over their properties,” Kingsley said.
He added that the government spent millions of dollars setting up Rental Dispute Resolution Victoria in June 2025 to streamline the resolution of rental disputes and reduce pressure on VCAT.
“But the reality is that the unintended consequence of all these reforms is that we are seeing an increased number of disputes,” Kingsley said.
Tenants who owed their landlords a five-figure sum left this mess behind in a Melbourne rental property. Image: supplied.
A Victorian Government spokesperson said the state’s rental laws protected the interests of both Victorian tenants and rental providers.
“Consumer Affairs Victoria provides free information and resources for renters and rental providers,” the spokesperson said.
Toby Balazs, director of the Real Estate Institute of Victoria, said the more than 150 rental reforms the state government has introduced in recent years have created “some inequality”, with the rights of rental providers not being protected in the same way as the rights of tenants.
Mr Balazs said the REIV supported laws to protect tenants and maintain rental housing levels, but mounting difficulties in managing rents meant less incentive to deliver such housing – exacerbating the state’s housing crisis.
Ray White Victoria & Tasmania business development executive Lauren Macpherson says referring tenants who cannot pay their rent to support services is often a useful step.
Although only a small minority of tenants do the wrong thing, this is little consolation for landlords whose tenants don’t pay rent for a long time or even destroy a house.
Here are some tips for real estate investors and property managers dealing with tenants who are unwilling or unable to pay their rent.
Former president of the Real Estate Institute of Victoria and dedicated property management professional Leah Calnan has come across cases of tenants with rent arrears ranging from $14,000 to $26,000.
Ms Calnan said in all cases there were delays in landlords removing tenants due to their requirements for a series of prescribed actions through VCAT.
Sometimes tenants owe their landlords tens of thousands of dollars in back rent.
In some cases, landlords sold their homes to get out of the scenario, potentially reducing the supply of rental properties for tenants paying their bills.
In one case, Ms Calnan said a landlord in Melbourne’s south-east had a tenant owed about $26,000 – and then repeatedly entered the property and tried to move back in after being legitimately evicted.
Ultimately, stopping it cost several thousand dollars more.
“The owners have installed front and rear CCTV to support their claims,” she said.
She said a skilled property manager can help minimize the timeline for removing problematic tenants, ensuring the right processes are done at the right time.
Tips for landlords to manage rent arrears
+ Ensure appropriate landlord insurance:
Landlord insurance with rental loss coverage can provide valuable protection if a tenant falls behind due to unforeseen circumstances. It helps secure your income while the problem is resolved;
+ Act early and communicate quickly:
Address missed payments as they occur. Early, respectful communication often leads to faster resolutions and helps prevent payment arrears from escalating;
Damaged walls in a Melbourne rental house.
+ Work with your property manager:
An experienced property manager understands the legislation and appropriate notice periods and can guide you in managing payment arrears while ensuring all actions remain compliant;
+ Ask for support and referrals for help:
Rental providers should confirm that their property manager has informed the tenant of organizations that may be able to assist with rent arrears or financial difficulties. This can include community services, financial counseling, or emergency counselors, which can sometimes help tenants stabilize payments and reduce ongoing arrears.
Tips for property managers chasing rent arrears
+ Follow a strict daily monitoring process of payment arrears;
+ Issue required notices within legal deadlines;
+ Provide regular communication updates to tenants and rental providers;
+ Seek direction at key decision points (including eviction notices and VCAT applications);
+ Refer tenants to support services to reduce the risk of long-term payment arrears.
Leah Calnan, director of Metro Property Management and former REIV president Leah Calnan, says landlords can spend thousands of dollars out of their own pockets in their efforts to legally evict non-paying tenants. Image: supplied.
How do you support a tenant in financial problems?
+ Follow a clear, structured payment arrears process. Daily arrears management processes include reminders, follow-up communications and formal notifications in accordance with legislation;
+ Encourage open discussion about hardship. Invite tenants to contact us immediately if they are experiencing financial stress so that you can discuss their options;
+ Consider structured repayment plans where appropriate. Where legislation permits and circumstances support it, structured repayment arrangements may be facilitated to help tenants stabilize their position while maintaining their lease.
Source: Ray White Victoria & Tasmania business development manager Lauren Macpherson and Ray White Benalla
Sign up for the Herald Sun weekly property update. Click here to receive the latest news from the Victorian property market straight to your inbox.
MORE: One in three Australian investors may quit, tenants under pressure | PIPA
Victorian government under fire after sale of ex-Altona North police business for more than $4 million
Toni Zagame mentions a $10 million Sorrento complex with beach boxes in the backyard
#escape #Couple #desperate #evict #tenant #Vic #laws #realestate.com.au