Recovering arrears after the tenant vacates

I have done as much reading as I can but I am not totally clear on how this works. Most threads only cover getting the tenant out. After that mostly people seem to say recovering money is very hard, but no specific process.

So what is the process exactly?

I understand you can get an order to garnish wages.

Let's say a tenant vacates on the 01/01/2015 - how soon after that (or before) can you apply for the order?

How long does it take to get? What does it cost?


What is the process and cost from there?
 
Most here don't go after the tenant.
They buy insurance, and claim it.

If there comes a time when insurance premiums are too high, then they may start going after the tenant.
 
Yep, my PM's take care of all the legalities to go with the LandLord Insurance claims. Each states have differing laws too.
 
You have to go to court or a tribunal to get a judgment. You need to then enforce the judgment. It will take months.
 
I do understand insurance is the best bet but that did not work out how I expected :( I had it but I did not understand it correctly and the coverage when month to month rather than in a lease was 2 weeks only. I have since changed to EBM.


What I am looking for is the procedure for going after the tenant. Whether or not I do, I want to understand it. My PM (yep, moving to a new one) is suitably vague when I ask, so I want a second opinion.


Terry_w - do you know the specific actions and time frames involved? My PM has given a similar answer, but I am trying to find the specifics.


When I look at the process for eviction, it is all, after X days, you can take this action, then X more days and so on.


I was hoping someone had been through the process!
 
What state is the property in?

Happy to give you the full rundown if it's in Victoria - unfortunately each state is very different, so what I say may not apply at all.

Are you currently holding a bond on the property?
 
2 years on and i am recieving $10 a week for a tenants debt.

Its a slow process. And the debt collector takes 25%.

Some times its not worth the hassle.
 
NSW, but thanks! What exactly do you mean by holding a bond?

Has the tenant paid a bond for the property?

I'm not sure about NSW, but here te Residential Tenancies Bond Authority holds all bonds in Vic.

If there is a bond and you receive an order from the tribunal to pay it to you, it will reduce the amount you need to claim through a debt collector.

As above, debt collectors are expensive and it's a very long process.
 
Assuming you issue a statement of claim, it will need to be served and then you have to wait 28 days to see if they file a defence. If they do then it will go on for about 6 months before the hearing. Once you have a judgment (if you win) you can then ask them to pay and you have to wait x days before you can start enforcement procedures. Then you have to wait around for the sherrif to cease property etc. If you want to garnish bank accounts you will need to know what banks and the account numbers. If you don't you may have to get them in to have them examined and answer questions.

Assuming they don't file a defence you can ask for a default judgment in your favour and this will speed things up. But they may then have the judgment set aside saying they were not served etc and you must go back to go.

To serve you need to know where they are. To extract money they must first have money or property you can seize. If they don't then you will not get anything.
 
Insurance is a must

There are a couple of great property management specialist insurance companies that will protect the lease fully with no excess on rent default claims.

Failing that you need a judgement against the tenant. But that in no way guarantees a return of the debt.

Never lease a property without appropriate cover.
 
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