Problem tenants

[beaver700]

G'day all

I have been a landlord for a bit over 18 months now, and am still very green at dealing with bad tenants.

I own a property in southern nsw.

I have a property manager looking after this property.

In September we had a tenant sign up for 12 months.

The other day the tenant gave notice as they are leaving town - 12th of march.

However, they have only payed until the first of February, they are behind in rent. Rent is 250/week, bond is 1000 dollars.

I am thinking they are hoping to take off, and make us claim the bond for the last month of rent.

Unfortunately it won't cover the 12 days in march.

My PM has put an application in to tribunal to recover some costs.

The house is messy and doesn't look like getting cleaned up properly before the 12th!

Just wondering what I am entitled to. I feel so violated !

Any help appreciated
MB

 

[beachgurl]

Do u have landlord insurance? If so, your policy may cover lost rent. As they are in a lease you should receive lost rent until a new tenant is found. This happened to me a few years back.

Push back on the agent on trying to get more rent from them. This is why u have an agent. Best of luck.

 

[HD_ACE]

So they signed up for a fixed term lease for 12 months? and are breaking the lease?

If so they will be liable for all costs rent, advertising, cleaning etc untill you source a new tenant. If it is in the lease usually is.

They should be paying all their rent, an have their bond returned at end of tenancy. not be using it for rent arrears.

cheers

 

[beaver700]

Thanks so much for your replies.

The tenant has basically broken the lease 6months early.

I am with EBM insurance. On the phone I asked if they would cover me, and they mentioned they would only cover for losses before the 12 of march, and not after the tenant had left

What can I do if the tenant just walks away and won't pay anymore after the 12th?

 

[skater]

Thanks so much for your replies.

The tenant has basically broken the lease 6months early.

I am with EBM insurance. On the phone I asked if they would cover me, and they mentioned they would only cover for losses before the 12 of march, and not after the tenant had left

What can I do if the tenant just walks away and won't pay anymore after the 12th?

YOU can't do a thing. Other than to fix the place & relet it. On the otherhand, your PM SHOULD be getting tough, really tough, with the tenants. As soon as they are 14 days in arrears the relevant notices should have been sent, and the Agent should be putting the fear of God into them.

 

[nhg]

Do u have landlord insurance? If so, your policy may cover lost rent. As they are in a lease you should receive lost rent until a new tenant is found. This happened to me a few years back.

Push back on the agent on trying to get more rent from them. This is why u have an agent. Best of luck.

12 days behind wouldn't be worth claiming on tenant insurance I would imagine. Considering the excess.

Write it off as self-insurance and a lesson learnt.

 

[Deltaberry]

Sorry to say but lap it up. That's the nature of residential property investment.

The real money is in capital growth, and I hope you bought a very good location because good parts of Sydney are going up/on the cusp of a price hike.

 

[nhg]

Sorry to say but lap it up. That's the nature of residential property investment.

The real money is in capital growth, and I hope you bought a very good location because good parts of Sydney are going up/on the cusp of a price hike.

What would be a 'good' part of Sydney?

Currently in the market for 2 apartments in the northern suburbs (Chatswood and surrounds).

 

[Peter 14.7]

12 days behind wouldn't be worth claiming on tenant insurance I would imagine. Considering the excess.

Write it off as self-insurance and a lesson learnt.

I would expect 12 to be the least issue. Repairs, cleaning etc. will add up. YOu PM should be going harder.

Also if the tenant vacates and it is unrentable then EBM should cover rent till repair, but I am hoping as all of them have outs.

Peter

 

[beaver700]

Thanks all for your replies.

I ended up going around there and asking the tenants politely why they haven't been paying the rent or replying to the PM emails.
In the end they agreed to email the PM on their plans. They were a bit taken aback when I questioned them on whether they had any intention of paying the rent.
The PM contacted me early this morning stating the tenants have agreed to pay 5 weeks of rent BY the 5th.

The house is in regional NSW and is positive geared.

See how we go

Thanks again

 

[mattysavager]

Any tenant of mine who stopped paying rent on the first of Feb would be out on the street by now.

The 12/3 is an arbitrary date and would generally not be considered by your insurer as having any relevance.

Terri Scheer for example will pay up to 6 weeks rent for an abandonment, unless the matter goes to QCAT, and then the 6 week limit is increased. I would expect EBM to be similar.

Put the pressure on your PM to give you firm answers on what can and cannot be claimed. There is really no 'grey area' in your situation.

Good Luck!

Matt