Options for good tenant late with rent?

[jazzeddie1234]

I have a self managed rental in Perth, with tennants who have looked after my place quite well for the past 4 years and always paid on time. They called today to say this months rent is due but they can't pay. They assure me they will catch up next month.

I know the process for termination etc.

I want them to stay but also to cover my bases just in case - what do you suggest I do paperwork-wise?

I have a months bond, agreement is month by month in advance
Ed

 

[mikezen]

4 years paying your mortgage is a good innings, esp if they have been really looking after your pad as well, i would just give them benefit of the doubt and see if they keep their word on it, woudnt u want them for another 4 years? i know i would

 

[DaveM]

Give them their month since they sound like good tenants otherwise. If they are not back in advance as agreed by next month's due date, termination notice.

At least they called, many would just wait for you to notice.

 

[mattysavager]

I would definitely start the ball rolling with the termination notice. What happens if the tenant doesn't pay next month either? By the time you get them out you could be 3 months without rent.

I would also phone the tenant and tell them verbally that they can have a month's extension on the date. Keep the notices in writing and the extensions verbal.

I would also give them the benefit of the doubt, put them on a payment plan etc but keep my bases covered by starting the eviction process and telling them that when they pay rent up, you will cancel that notice.

 

[schweedy]

Ok, if rents due now, and its month to month and paid in advance.
That means that they are paid up to date, but will fall behind as the coming month proceeds.

I'm not sure, but I think they have to be 14 days in arrears before you can issue a notice for them to be paid up to date in the next 14 days, thus if done properly with days allowed for postage etc, should fall around the time the next months rent is due....ie if they pay their rent up to date and back into advance in their next payment, all is fine and well, if not, you are up to scratch on the paperwork to apply to the tribunal to collection, or a payment plan to be registered (especially if they are good tenants).

 

[thatbum]

I would suggest that you issue a breach notice still, giving a months time to "rectify" the rent arrears.

Issue it with a letter explaining that you were advised to just cover your bases, and they can effectively ignore the breach notice if it all goes as they plan.

That way you still seem nice and reasonable, while still being able to give them a gentle nudge along and cover your bases if the worst case scenario happens.

 

[kathryn d]

I would definitely start the ball rolling with the termination notice. What happens if the tenant doesn't pay next month either? By the time you get them out you could be 3 months without rent.

I would also phone the tenant and tell them verbally that they can have a month's extension on the date. Keep the notices in writing and the extensions verbal.

I would also give them the benefit of the doubt, put them on a payment plan etc but keep my bases covered by starting the eviction process and telling them that when they pay rent up, you will cancel that notice.

Good advice.

 

[Scott No Mates]

Taking into account their track record, have they given a reason for falling behind eg loss of job, builder has gone bust and they haven't been paid, cat died and needed $50k operation before it died etc? Then weigh it up as to the likelihood of payment.

 

[MTR]

I have a self managed rental in Perth, with tennants who have looked after my place quite well for the past 4 years and always paid on time. They called today to say this months rent is due but they can't pay. They assure me they will catch up next month.

I know the process for termination etc.

I want them to stay but also to cover my bases just in case - what do you suggest I do paperwork-wise?

I have a months bond, agreement is month by month in advance
Ed

So why are they late after 4 years paying on time, job loss????
I would want to know this in the first instance to work out my next step.

 

[Blurbman]

Maybe you could issue a default notice, but verbally tell them it's a technicality because of your insurance policy etc which requires immediate notice. That way you are protected, but that they may consider you to be not such a bad bloke and that it's all the insurance companies fault.

 

[Lil Skater]

For "good" tenants who call up and inform of late rent one in a blue moon I tend to use a line something like - "that's not a problem, but just so you know legally after x amount of days (14 in Vic) I must start the process of eviction, if all is paid up the notice will be cancelled"

That way they know what to expect, and I haven't had any real issues. I always just say what I legally must do.