PM didn't tell us our tenant was in arrears

[beachgurl]

2 weeks ago I called my PM to discuss increasing the rent on my IP. While on this call she said "oh, by the way, your tenant is about 5 weeks behind in their rent". I asked her if an eviction notice had been sent and she responded by saying that the tenant had visited her previously to inform that she was having trouble paying the rent and could she pay the arrears in installments. Apparently the PM said OK but in that time the tenant stopped paying extra each week and had fallen behind again. By the time the agent went to the property a few days after our telephone call to issue the eviction notice the tenant had gone.

Is it law that a PM has to give an eviction notice after 2 weeks arrears? If so, are there any penalties against the agent for not taking action earlier? The PM is convinced she will receive the rent owing but if the tenant has found a new property I doubt we will see another cent and we are really not keen to make an insurance claim to retrieve lost rent and cleaning/locksmith costs.

thought I would ask if we have a leg to stand on before I have a little chat with my PM.

 

[Pushka]

Check your contract with the PM - the process they agree to follow should all be in it. I would also be looking for a new PM - they had no right not to inform you.

 

[chrispy]

Are you covered by the Bond - hopefully there was a 4 week bond to go into the property

Chris

 

[beachgurl]

Hi Chris, yes, we do have a 4 week bond so we will get that at least. A new tenant moved in today so we still have a shortfall of 3 weeks rent plus cleaning and locksmith costs.

 

[Modal Harmony]

Hello BG, I hope that you either have a new PM for the newly acquired tenant or that you registered your displeasure with the current one for lack of communication.

Remember, they are not doing you a favour to manage your IP; there is a fee involved!

 

[quoll]

nag chase nag chase - be a pain

The tenant is liable for the rent.

It might just take a bit or maybe a lot of work from you to get it.

First step is to nag the PM to find out a new address for tenant and write a couple of letters of demand for outstanding rent.

You can also get a debt collector involved but they take 1/2 as commision so they are a costly option.

You can also get the sheriff dept to collect debts, haven't used them but know of others who have for small debts and once you fill in the paperwork it seems pretty easy.

From experience we as a tenant broke the lease found a new tenant and vacated when we bought our first house. The PM chased us for outstanding rent which we paid.

With our tenants we have had to nag the PM to get things done, which has worked.

The other 2 options are what others I know have done to collect outstanding debts.

cheers
quoll

 

[Alanna]

Make sure that your PM lists your tenant on the bad tenants register, whatever it may be called in your state, along with the reason. If the tenant applies for a new rental via a PM, then your PM will likely get a call for a reference. Make sure that they get the name and address of the agency, which might make it easier to locate them, if they ask the right questions, such as how big is the house they are renting, how much per week etc. You may end up doing some of the legwork but get the gain.
Your other option if you choose to pursue it and your contract is clear is to chase the PM via the Fair Trading Ministry. We had a tenant disappear many years ago on a property that turned out to be badly managed. We lodged complaints via the Fair Trading and they chased it all up through the PM. Short story, bad PM, poor paperwork, missing rent, they were forced to cough up all costs.

Good luck.

 

[duncan_m]

I asked her if an eviction notice had been sent and she responded by saying that the tenant had visited her previously to inform that she was having trouble paying the rent and could she pay the arrears in installments.

So in fact the correct answer to your question was "No"..

Your PM sucks, even if there's an agreement in place to "catch up" on rent by paying extra they should ALWAYS serve the correct paperwork to commence the process for an eviction.. Just in case.. in my experience Tenants who fall behind in their rent invariably do NOT catch up. It just turns into one jolly long saga of excuses and broken promises.

Tell them you expect them to serve all of the necessary forms on your Tenants next time even if there's an agreement in place to "catch up". Or sack them and get someone more professional.

 

[cgw]

Are you still using the same PM. Send the Principal of the agency a letter detailing your concerns of how slack the PM had been, and demand that the agency re-imburse you the out of pocket expenses loss of rent etc, other wise you will find another agency.
Any well organised, proactive, PM should have let you know after the first 2 weeks of arrears.

 

[Xenia]

Are you still using the same PM. Send the Principal of the agency a letter detailing your concerns of how slack the PM had been, and demand that the agency re-imburse you the out of pocket expenses loss of rent etc, other wise you will find another agency.
Any well organised, proactive, PM should have let you know after the first 2 weeks of arrears.

I agree! Letting a tenant go 5 weeks into rent arrears is just inexcusable. If they are a reputable agency they would take all responsibility of the mistake done on ther part and reimburse you the money after the 14 day period that they should have followed.