Mikaela's tenants are $8,000 behind on rent. But a 'mind-boggling' ruling means they can't be evicted

Published: 04:54, 5 May 2026 | Updated: 04:56, 5 May 2026 A homeowner has been forced to work extra shifts to afford two mortgages after a tribunal ruled her tenants could not be evicted despite being $8,000 behind on rent. Mikaela Cowan, 31, rented out her two-bedroom townhouse in May, 2023, to a family-of-four who began falling behind in rent payments eight months in. The nurse, who bought the Mill Park investment property in Melbourne's outer northeast before the pandemic, is now struggling financially as a result.  'For me, it's been an incredibly stressful situation,' Ms Cowan told the Daily Mail.  'They're currently around $8,000 in arrears and meanwhile, I'm a single, 31-year-old nurse on one income and paying two mortgages which just keeps increasing with every rate rise we have been having. 'I've had to put off plans that involve anything financially and work extra shifts to cover both my mortgages.' Ms Cowan, who currently rents a one-bedroom apartment, put the tenants on four payment plans but said they continually failed to pay.  She also issued the family with a 60-day notice to vacate last October.  A home owner has promised to 'never rent in Victoria again' after struggling to evict her tenant despite them being thousands of dollars behind in rent However, she said the Victorian Civil and Administrative Tribunal (VCAT) backed the renters 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 have the tenants contacted me or my property manager citing financial difficulty.' She said the tribunal found the tenants were attempting to follow the payment plan.  'One example is that the payment plan stated they owed $4,600 in one week,' Ms Cowan said.  'They paid $1,300 and VCAT said that "was them trying" so they were allowed to stay.'  Ms Cowan said the eviction notices she served appeared to have no effect and that the rules for tenants compared to landlords were unfair.   The nurse bought the Mill Park investment property in Melbourne's outer northeast before Covid after a breakup 'There are consequences for me if I don't pay my mortgages and I feel like the same does not apply to renters,' Ms Cowan said.  'It's one thing for them to be doing the wrong thing, but to then have a system in place 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 upon year.'  Ms Cowan believes the whole system needs to be overhauled and said that, if common sense prevailed, the tenants would have vacated already. 'The decisions they make are completely mind-boggling and nonsensical,' she said. She has also given the tenants another notice to vacate, saying she wants to move back into the property due to financial hardship. If successful, that won't eventuate until mid June. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.