Late paying tenant

W

WebBoard

Guest
From: Brett Watson


I'm in the process of getting a new tenant for a property in Rowville (Vic). The agent has found a couple with 3 small children who have a great record with their last Landlord, ie they have a good credit history, they kept their last place spotless, they always paid their rent. My problem is that their last agent said they where always late with their payment.
Should I accept their application knowing that I will get my rent but it will most likely be late or keep searching for other tenants?
 
Last edited by a moderator:
Reply: 1
From: Joanna K


Brett,

be careful. I know that alot of property managers will give glowing references for tenants they want to get rid of, just so they find somewhere else to live.

Ask the tenants to supply you with a print out of their tenancy ledger. they can obtain this from their current agent. if they refuse, well, you know little white lies have been told.

If they give it to you, you will be able to examine for yourself how they paid their rent.

If you still take on the tenants, make sure your lease says "the payment of rent under this agreement is an essential and fundamental term of this agreement". Also make sure that it clearly clearly states that the tenant must pay ON OR BEFORE the due date. if the tenants fail to do this, you can go to the tribunal and get a "specific performance" order.


Kind regards
THE RENTAL SPECIALISTS

Joanna Karavasilis
Principal

www.rentalspecialists.com.au
rentals@rentalspecialists.com.au
 
Last edited by a moderator:
Reply: 1.1
From: Dale Gatherum-Goss


Hi Joanna!

That's great advice and something that we can all learn from. Thank you

Dale
 
Last edited by a moderator:
Reply: 1.1.1
From: Asy .


Joanna!!
Fantastic advice, as usual, THANKS!!

Brett:

Another tip, you may want to ask for the details of their previous landlord/managing agent, i.e. the one BEFORE where they are living now. Follow this up, you are likely to get the full picture there, as they have no vested interest in removing them from a property.

The other thing you may like to do is suggest they pay their rent directly to the agent via direct debit. The late payment may be as simple as they are not organised to get into the office on time, but are great tenants in every other respect.

Good luck, let us know what happens!!

asy

"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
Last edited by a moderator:
Reply: 1.1.1.1
From: Joanna K


Guys,

I thought I'd attach something that hopefully some of you may find useful.

The first is the "Additional Terms" that I place in my residential tenancy agreements. Please note that these are used in NSW leases.

The second is the application form that I have tenants fill out.

Hope you find them useful.


Kind regards
THE RENTAL SPECIALISTS

JOANNA KARAVASILIS
Principal

rentals@rentalspecialists.com.au
www.rentalspecialists.com.au
 
Last edited by a moderator:
Reply: 1.1.1.1.1
From: Owen .


Fantastic stuff Joanna. Thank-you.

It's always good to see other peoples forms and wording and merging with my own documents...especially when they come from a business. My template documents for leases are still evolving so it will be good to compare them with yours. I'm sure they will be a great help.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1
From: Mark Laszczuk


Is there someone who has them, and is willing to put up stuff similar to the additional terms, but related to Victoria? And all the other states for that matter?

Mark
'no hat, some cattle'
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1
From: Alan Hill


Yes....thank you very much Joanna.

That is very helpful.



:)
 
Last edited by a moderator:
Reply: 1.1.1.1.1.2
From: Joanna K


Hi Owen,

I can give you a template for the front page of the lease. It's a form that you just tab through and fill in the fields. Then just attach it to the booklet section of the lease.

Actually, I'll attach it now.

It's a protected document, so just hit the unlock button on the top right hand side to add default fields. Don't forget to protect it again once you've added in all your default fields.

Let me know if you have any problems with it.


Kind regards
THE RENTAL SPECIALISTS

JOANNA KARAVASILIS
Principal

rentals@rentalspecialists.com.au
www.rentalspecialists.com.au
 
Last edited by a moderator:
Reply: 1.1.1.1.1.2.1
From: Owen .


Thanks again Joanna. I hate having to fill the details out by hand. It looks so messy especially when I make a mistake and have to cross it out. This will be so much easier.

Owen

PS - I'll by you a drink to say thank-you on Saturday at the pub crawl.


"Gambling promises the poor what property performs for the rich – something for nothing"
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.2.2
From: Miakat .


How do I change the parts which say cross out if not needed? For instance, my house id fully furnished and need the lease to say so.

Cheers

Miakat
 
Last edited by a moderator:
Reply: 1.1.1.1.1.2.2.1
From: Joanna K


Hi Miakat,

Just unprotect the document first, then highlight the section that has already been crossed out and go to Format, Font, and you will find a tick through the box that says "stricktrough". Just untick that box so the text is not crossed out anymore.

Then just protect the document again and save it.

Hope this helps


Kind regards
THE RENTAL SPECIALISTS

JOANNA KARAVASILIS
Principal

rentals@rentalspecialists.com.au
www.rentalspecialists.com.au
 
Last edited by a moderator:
Reply: 2
From: GoAnna !


Hi Brett

I presume that you will have already made a decision by the time you read this but just on the slight offchance that you haven't I will proceed. I am curious why your Property manager is putting forward an application from prospective tenants who "were always late with their payment". Rent payment is afterall the major reason you have a tenanted property! Otherwise you may as well get in a house minder. And what will the delayed payments cost you in terms worry and interest payments. Would it be cheaper to let it at $10 less per week if you are having trouble filling it?

Is your property manager recommending that you select them and if so why? How has the hunt for tenants gone so far? Is the PM doing a good job?

You will need to consider that sometimes a bad tenant can be worse than no tenant at all. I was recently in a similar position in regards to selecting a tenant. I was letting a property in the slowest time of the year. Eventually I had 2 applicants. One wanted a 3 month lease and the other a 12 month. We did however have a number of doubts about the 12 month applicant which were confirmed upon further investigation. I happily took the 3 month tenant instead who moved in straight away, always paid on time and took great care of the place and when they moved out it was peak rental season and we relet it for 12 months at a higher rate.

My general rule is that if you have doubts - don't! Sometimes no tenant is a better financial decision that a bad one. And they will not be the last application unless you are pricing the rent far too high.

I would be interested to know what you did decide and how it eventually turned out.

Best of luck :eek:)

GoAnna !
"Obstacles are those frightful things you see when you take your eyes off your goal."
-Henry Ford
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1
From: Brett Watson


Firstly, thanks everyone for the great advice!!
I decided to pass on the late paying tenants and had a chat to my rental agency about all the extra work they will have to do chasing late rents - they agreed that it would be best to keep looking.
They continued to show other tenants through the house and I am in a position to choose from two other applicants. Things are looking good.
I will let you know what happens.
 
Last edited by a moderator:
Reply: 2.1.1
From: GoAnna !


That's fantastic news Brett!! Great to hear that there was a happy ending :eek:)

GoAnna !
"Obstacles are those frightful things you see when you take your eyes off your goal."
-Henry Ford
 
Last edited by a moderator:
Top