This Melbourne rental home was left in dire straits by tenants who were $20,000-plus behind on their rent. Landlords are among many across Victoria reporting bad behavior from tenants.
A cancer patient and her pensioner husband are calling for an overhaul of Victoria’s tenancy laws as they tussle with a tenant who has not paid rent for months, but refuses to move out of their yard.
The couple, aged 67 and 84, were left devastated by the Victorian Civil and Administrative Tribunal’s decision which they fear has left them stuck with a tenant who owes thousands of dollars in rent for their granny flat at the back of their house.
In particular, despite fighting the eviction, the tenant has filed for an intervention against the pair, which will be issued next month – forcing them to leave their home.
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Kez and Sammy have rented out the backyard of their home in Melbourne’s inner North for over ten years.
Kez, who needs ongoing medical attention and surgery for a series of persistent skin cancers, said their landlord owes them more than $7100 in unpaid rent as of October 2025.
She and her husband, who suffers from serious heart problems, rely on her grandmother’s weekly rent of $450 to survive.
Kez has found more jobs and borrowed thousands from friends to pay off this debt, as well as water, electricity and internet bills – which they pay for in rent.
When a tenant stops paying rent, they issue a notice to vacate as required under Victorian law and apply to VCAT for an eviction order when this is ignored.
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The Victorian Civil and Administrative Tribunal, also known as VCAT, is based in King St, Melbourne.
The court’s original decision said the tenant could stay until February 3, before an eviction notice was issued.
The tenant asked for the decision to be reviewed, and at a second hearing VCAT vice-president Kylea Campana gave them more than two years to pay the rent, starting later this month.
Ms. Campana’s decision also left the landlords not knowing when they would evict her or if they would be able to evict the tenant and get their yard back.
His order states that they can apply for another eviction order if the tenant fails to follow the payment schedule.
“Each new development feels like another blow, and the weight of it all makes it harder and harder to hold back,” Kez said.
“We live only meters from the tenant, so there is no escaping tension or fear.”
![A Melbourne rental home has been left in dire straits by tenants who were $20,000-plus behind on their rent - herald sun real estate reports.](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 768 1024"%3E%3C/svg%3E)
Tenants who fell behind on their rent did not clean up after themselves in this Melbourne home. Photo: Provided.
They’ve started a GoFundMe appeal since they can’t afford a lawyer, and their landlord has given Kez an injunction “based on events that never happened”.
An intervention order can force them to leave their homes, if it is fully accepted when it comes to the courts.
Now Kez wants her and her husband’s experience to spark a wider conversation about reform and affordability in Victoria’s rental system, particularly for small landlords.
However, since the VCAT hearing, their landlord has paid the rent for the first time since September.
The Herald Sun has chosen to use the name Kez and Sammy, due to an entry order request.
Property Investors Council of Australia chairman Ben Kingsley says the number of disputes between tenants and landlords is increasing in Victoria.
The chairman of the Property Investors Council of Australia, Ben Kingsley said that although abusive tenants are in the minority, Victoria is seeing a growing number using “every trick in the book” in their efforts to stay in rental properties when landlords want them out.
“And the government has been subsidizing them with other rental changes that make it more difficult for owners to control their property,” said Mr Kingsley.
He added that in June 2025, the government spent millions of dollars establishing Rental Dispute Resolution Victoria to resolve rental disputes and take pressure off VCAT.
“But the truth is, with all these changes the unintended consequence is that we’re seeing a lot of conflict,” said Mr Kingsley.
Tenants who owe their landlord a five-figure sum have left Melbourne’s rental sector in chaos. Photo: Provided.
A Victorian government spokeswoman said the state’s recruitment laws protected the interests of both Victorian employers and recruitment providers.
“Consumer News Victoria provides free information and resources to employers and recruitment providers,” a spokesperson said.
Real Estate Institute of Victoria chief executive Toby Balazs said the state government’s more than 150 rental changes in recent years had created a “certain imbalance” where the rights of landlords were not protected in the same way as tenants’ rights.
Mr Balazs said the REIV supports laws to protect tenants and hold rental properties to a reasonable level, but compounding the difficulties of managing rental properties means less incentive to provide such housing – thereby exacerbating the state’s housing crisis.
Ray White Victoria and Tasmania business development officer Lauren Macpherson says referring tenants who can’t pay rent to support services is often a helpful step.
While only a minority of tenants are doing something wrong, this is little consolation to landlords whose tenants are not paying rent for months or even a month.
Here are some tips for property investors and property managers dealing with tenants who can’t or won’t pay their rent.
Former president of the Real Estate Institute of Victoria and dedicated property management expert Leah Calnan has come across cases of tenants being defrauded of anywhere from $14,000 to $26,000 in rent arrears.
Ms Calnan said that in all cases there was a delay in landlords being able to evict tenants due to the requirements that they take a series of steps through VCAT.
Sometimes tenants end up owing landlords tens of thousands of dollars in back rent.
In some cases, landlords were selling to get out of the situation, potentially reducing the supply of rental housing to tenants who were paying their bills.
In one incident, Ms Calnan said a landlord in Melbourne’s south-east came up with a tenant who owed $26,000 – then repeatedly broke into the property in an attempt to continue living there after they were legally evicted.
Finally stopping them took several thousand dollars more.
“The owners have turned on the CCTV from the front and back to back up their claims,” he said.
He said a good property manager can help reduce the time it takes to evict problem tenants, ensuring the right procedures are done at the right time.
Tips for landlords managing rent arrears
+ Make sure you have the right homeowner’s insurance:
Landlord insurance that includes loss of rent coverage can provide valuable protection if a tenant falls behind due to unforeseen circumstances. It helps protect your income while the matter is resolved;
+ Act early and communicate quickly:
Address missed payments as soon as they occur. Early, respectful communication often leads to faster decisions and helps prevent debt from growing;
Damaged walls in a Melbourne rental home.
+ Work with your local manager:
An experienced property manager understands the law and notice deadlines and can guide you in the management of outstanding debts while ensuring that all actions remain compliant;
+ Ask about support and referrals:
Providers of rental properties should ensure that their property manager advises the tenant of organizations that may be able to help with rent arrears or financial difficulties. This may include community services, financial counseling, or emergency assistance providers, who can sometimes help tenants stabilize payments and reduce ongoing debt.
Tips for property managers chasing rent arrears
+ Follow a strict procedure for monitoring daily debts;
+ Issue the necessary notices within the periods set by law;
+ Provide regular communication updates to employers and recruitment providers;
+ Seek guidance in key decision areas (including exit notices and VCAT applications);
+ Refer tenants to support services to reduce the risk of long-term backlog.
Metro Property Management director and former REIV president Leah Calnan says landlords can end up spending thousands of dollars out of pocket in their efforts to legally evict non-paying tenants. Photo: Provided.
How to support a tenant in financial difficulties
+ Follow a clear, structured credit process. Daily credit management processes include reminders, follow-up communications and legal notices in accordance with the law;
+ Encourage open discussion about difficulties. Invite employers to contact you immediately if they are facing financial pressure to discuss options;
+ Consider structured payment plans where appropriate. Where the law allows and circumstances support it, structured payment arrangements may be facilitated to help tenants stabilize their circumstances while maintaining their accommodation.
Source: Ray White Victoria and Tasmania business development officer Lauren Macpherson and Ray White Benalla
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