PM Gems: Five-year long battle for incredible Benalla PM team

What started as a straightforward tenancy five years ago quickly turned into one of the most complex and drawn-out disputes ever seen by VCAT.

For the incredibly patient and hardworking property management team at Ray White Benalla, this case has been an ongoing legal and emotional battle that began long before they even took over the case.

In early 2020, a tenant moved into the property and initially loved it. However, just a year later, things took a downward turn. Around the same time, the landlord received devastating news, he had been diagnosed with cancer.

He and his family needed to relocate their severely disabled daughter into the rental property so she could receive proper care while he underwent treatment. Because of this, the tenant signed a six-month lease, and from that point forward, managing the tenancy became increasingly difficult.

This all unfolded during the height of the COVID-19 pandemic in Victoria, adding another layer of complexity to an already difficult situation. The tenant refused to vacate the premises, despite the landlord’s urgent need to move his daughter in. What followed was a relentless legal struggle spanning four years, involving more than 20 VCAT hearings, two Supreme Court appeals, and countless disputes over rent arrears, property access, and maintenance issues. The tenant had stopped paying rent for over a year, forcing the landlord to take legal action to recover losses.

Despite repeated attempts to resolve the situation professionally, the tenant's behaviour became increasingly antagonistic. She would refuse property access for necessary repairs, even while demanding those very repairs be completed. This required VCAT intervention just to gain entry to the home. Her hostility extended beyond legal disputes; she sent threatening emails, shared the personal addresses of Ray White Benalla staff on social media, and made false and damaging accusations against the landlord.

The landlord and property managers faced ongoing direct harassment. On New Year’s Eve, the tenant blocked her toilet with excessive toilet paper and demanded an emergency repair within 24 hours. A plumber was arranged but the damage was so severe that the toilet had to be broken to fix the issue; another cost unfairly shouldered by the landlord. The tenant even confronted and intimidated family members of the property managers in public.

VCAT recognised this as one of the most extreme disputes between a landlord and tenant they had ever seen. Ultimately, the appeals court ruled in favour of the landlord, awarding him $80,000 to $100,000 in costs. However, the tenant has yet to pay a cent, and the landlord now faces the difficult choice of pursuing further legal action, which would be costly and time-consuming. Meanwhile, the tenant has escalated her case further, filing a compensation claim that is now under review by the president of VCAT and launching an appeal against Ray White Benalla in the Federal Court.

Living in a small town has made this ordeal even more personal. The property managers and the landlord have endured relentless public scrutiny, harassment, and abuse. Despite everything, the Ray White Benalla team has remained professional, committed to doing their job with integrity.

As for the landlord, he is a remarkable individual who has already faced unimaginable hardships. They lost one daughter in a tragic car accident, has another who is severely disabled, and has battled cancer, all while dealing with this legal nightmare. The Ray White Benalla team believe he deserves closure, justice, and peace after years of distress.

For now, everyone involved is awaiting the decision from the president of VCAT, hoping for a resolution that will finally bring this exhausting chapter to a close.

You can read more about the Ray White Benalla team’s story here.

Ray White Benalla’s advice to other property managers:

• Spend a great deal of time vetting your tenants and making sure you have all the information you need before placing a tenant. Consider doing a Google search as part of the vetting process which could help reveal any dark history.
• Follow your processes and procedures; they are in place for a reason. Ensure all your ducks are in a row - this will limit liability if things go wrong.
• Seek advice from corporate head office and other external PM experts.
• Seek out all the best practices and information. Unfortunately, the help and advice for PMs is not as readily available as it is for tenants.
• Trust the process and know that you are doing all you can; with this case, the team got there eventually and it was costly and draining; however we can be proud with how we dealt with this, in the face of adversity. There are times we could have given up, but we kept pushing for justice for our landlord.
• Make sure your landlords follow every regulation and every rule.
• Don't be too proud to seek advice and ask for help, Whether you need it work wise or for your own mental health. We have been very fortunate to have each other through this stressful time.