Non paying tenant

[Emily_Zac]

I have a house in Queenstown Tas, It is tenanted as was when I bought.

A couple of weeks in the PM tells me that she has not paid any money and that she said she was waiting for centrelink to sort this out.

My question is if the previous owner (who self managed) knew that she was not paying did did he have a legal obligation to tell me prior to settlement ?

Many Thanks
Martin

 

[Propertunity]

My question is if the previous owner (who self managed) knew that she was not paying did did he have a legal obligation to tell me prior to settlement ?

Probably not Martin, no.

Tasmania does not have Vendor Disclosure Legislation, although it is due mid-2010
http://www.yourmortgage.com.au/articles/3455/default.aspx

However, your solicitor has a duty of care to extend to you and knowing the place was tenanted, should have asked the vendor or the vendor's solicitor for an up to date statement - so that adjustments could be made for rent (just like water, rates etc) as of settlement day.

If you solicitor did not do this - then you probably need to talk to them. Of course, if your solicitor did ask the question and was lied to, then that is another matter altogether.

 

[bespoke]

I had a similar problem in one of my PI's.

Don't know what the tenancy laws are in Tassie but I would be getting the PM to issue some sort of breach notice/ eviction notice. My ex tenant was issued with one of these and surprise surprise, the rent appeared the day after she received it.

Is the PM on her back every day to pay? because if not she has no sense of urgency to get centrelink to speed things up. The longer it goes on, the less chance of getting your rent money in full.

Don't forget who's pocket the mortgage is coming out of if the rent isn't getting paid.
Stand up for yourself.

 

[marg4000]

As said, I would commence eviction proceedings immediately. I believe that a Centrelink beneficiary in receipt of an eviction notice can access money to bring the rent up to date (but then again, I could be wrong).

You are lucky to have a PM in Queenstown - friends looked at an IP there a few years ago but discounted it because there was no PM in town.
Marg

 

[Emily_Zac]

As said, I would commence eviction proceedings immediately. I believe that a Centrelink beneficiary in receipt of an eviction notice can access money to bring the rent up to date (but then again, I could be wrong).

You are lucky to have a PM in Queenstown - friends looked at an IP there a few years ago but discounted it because there was no PM in town.
Marg

Thanks everyone

Marg, There are still no PM's in Queenstown but the ones in Wayandra (?) look after it but the fees are 10.25% + GST so quite expensive rent vs loan is very good tho' ( when they pay) I have had the PM serve the notice.

Oh well life goes on

 

[Tizzy]

Hi Martin, sorry to hear you are having rent payment issues (every investors headache!). You've probably already seen the information about the Centrelink direct bill payment system . It is called Centrepay.

http://www.centrelink.gov.au/internet/internet.nsf/services/centrepay.htm#what

It isn't that difficult for the tenant to switch payments to the new pm. Once the tenat advises Centrelink of the new details it comes out of the next payment due to them. If for some reason the Centrelink payment is reduced and there isn't sufficient money in their account, any direct debits don't get paid. The tenant can also cancel the arrangement when they like too so, it sounds like the tenant is stretching the truth a bit with the PM.

I hope your PM sorts it out promptly by serving a non payment of rent notice. I'd be back on to them first thing tomorrow to check it has been done. Good luck.