Rent arrears

[Holmes2012]

Would appreciate some guidance.

A tenant has 4 more months to go on the fixed lease.
He is now 7 days in rent arrears.

I understand i can issue him notice to remedy that within 7 days.
Failing that i can give him a notice to vacate within 14 days.

Property in Qld.

Of course will recover the 3 to 4 weeks arrears from his bond.

Is there any grounds he can stay on?

 

[danwatto]

Are you self managing?

Always give the notice to remedy immediately so they understand how serious it is, and don't think you are soft. If they have a reason for it they should discuss with you instead of just not paying.

Usually that's all it should take..

Bond is not for recovery of rent - how will you repair damages if they are 4 weeks behind in rent when they leave?

 

[Holmes2012]

Hi thanks. Agree it is not wise to rely on the bond for rent arrears. However it doesnt look like tenant intends to clear arrears so bond is my fallback. I am keen to show him the door as he always has a litany of excuses. I hope he is unable to find the money to clear the arrears!

 

[danwatto]

However it doesnt look like tenant intends to clear arrears so bond is my fallback.

What happened exactly? Did he say he wasn't going to pay?

If you need to evict, even more reason to issue notices without delay. Follow procedure to the letter, and if you're self-managing then read and re-read about the process from the RTA.

If you have landlord insurance, also need to follow procedure correctly to ensure can make a full claim.

 

[Holmes2012]

He says he lost his job and his priority is to clear other bills like car rego, electricity, etc.

Told him rent is also an important bill and i got repmts to make too. He stopped responding after that.

I surely will give him form 11 notice to remedy rent arrears in 7 days. Also will explain in written my intention to proceed to form 12 notice to vacate in 14 days if rent is in arrears.

As a TICA member, will be noting it too so other landlords are aware.

 

[Nemo30]

Maybe you could hand deliver the notice on xmas day.

 

[Holmes2012]

Maybe you could hand deliver the notice on xmas day.

Nope. Not going anywhere near Logan on xmas day! Will send a registered mail so he cannot come up with another dog-ate-my-homework excuse of not receiving any notice!

 

[danwatto]

He says he lost his job and his priority is to clear other bills like car rego, electricity, etc.

Fair enough if he lost his job - but seriously, how can he put other bills like car stuff ahead of rent.

You need a place to live first and foremost, the only bills that come before that are food and medical.

Yet another reason to issue the notice - rent is not a low priority bill!

Electricity - you can call them up and ask for a payment plan or for more time, and/or put it on credit card.
Rego - just get 6 months instead of 12 months, and/or put it on the credit card.

 

[Holmes2012]

Had he been nicer I would have allowed a couple of weeks arrears. But the way he tried to demand and intimidate and come up with cosmetic flaws in the house as excuses to exempt the rent for him, has got to the wrong side of me. He definitely will not see a renewal with me and possibly face an early termination. As far as he clears rent he can stay but am not renewing. Wat a headache he is!

 

[skater]

I'm in NSW, and things do differ between states, however most things are relatively similar

He is now 7 days in rent arrears.

Don't stress, it's only 7 days. Not a lot can be done until they're 14 days. What has your PM had to say on this matter. Have they issued the relevant notices?

Is there any grounds he can stay on?

Sure, many! Like I said, it's only 7 days. Once it gets past 14 days (if the same process is followed), then they can book a hearing with the QLD Tribunal. Usually they just put them on a payment plan. If they've got kids, they can really milk the system. To evict - getting them locked out of the property, if they refuse to move - takes time.

 

[Holmes2012]

Sure, many! Like I said, it's only 7 days. Once it gets past 14 days (if the same process is followed), then they can book a hearing with the QLD Tribunal. Usually they just put them on a payment plan. If they've got kids, they can really milk the system. To evict - getting them locked out of the property, if they refuse to move - takes time.

I was reading RTA site that says if there is an unremedied breach for rent arrears, notice period is 14 days to vacate. Understand he can open a dispute and buy time.

Max he can torture is for 4 months! I can sustain that repmt in the worst case scenario but inability to produce a rent ledger could affect a near future purchase.

Tropical hard fruit!

 

[danwatto]

I was reading RTA site that says if there is an unremedied breach for rent arrears, notice period is 14 days to vacate. Understand he can open a dispute and buy time.

Max he can torture is for 4 months! I can sustain that repmt in the worst case scenario but inability to produce a rent ledger could affect a near future purchase.

Tropical hard fruit!

Lenders usually accept the lease as evidence.

 

[Peterw]

When you issue notices, make sure that you have allowed for delivery times. Recently a LL lost a vacation order, as their notices were considered void as timings were wrong.

 

[MKP]

Sorry to hijack your posting Holmes2012.
Do other self-manage landlords in this forum find their tenants slacked off in paying their rent around christmas time? I have one tenant that do this every year; their priority shifts from paying rent to buying christmas presents and all the nice things for the house. They do feel bad about it and the will tell me every kind of stories (some true, some I know are not true) as their reasons. They even told me they have split up; but 'he' is till coming every night to see the kids - and she fell pregnant (child no#4 is coming) while they are separated.

They have been in the house since 2009, and almost every Dec I chase rent and every January I sat down with them and showed them a simple money management. Food and medical is the first First priority; then rent, bills, and pressies. But they just can't help it, the same pattern appears every christmas. So, this year, since about september, I asked them to pay extra $20-30 rent every week, so their christmas rent can be covered by the extras. So far this year, I haven't needed to chase them, but I won't laugh yet because thei week's rent is still yet to be paid.

Are there other landlords with similar experience aroud christmas?

He says he lost his job and his priority is to clear other bills like car rego, electricity, etc.

Told him rent is also an important bill and i got repmts to make too. He stopped responding after that.

I surely will give him form 11 notice to remedy rent arrears in 7 days. Also will explain in written my intention to proceed to form 12 notice to vacate in 14 days if rent is in arrears.

As a TICA member, will be noting it too so other landlords are aware.

 

[danwatto]

Sounds like alot of work, imagine if you had 12 properties and had to do this for all of them

In the long run I find property managers (good ones that is) save alot of time and headaches.

We do self-manage one property, but that ones got an excellent military tenant and it's only 10 minutes drive from us.

 

[balwoges]

I have one tenant who pays in the middle of the month when the rent is due on the 1st of each month, I self manage and because I know him and trust him he probably will continue to struggle a bit. This Christmas he has paid his rent in 2 amounts and there is still a small amount owing which I know I will receive before the end of the month. I let him get away with this as he repays me by looking after my property [which is multi tenanted] and doing small repairs. He also watches and questions any strangers who visit the property. Its a mutual thing and I like him

I will now wait for inevitable loony replies that I am a bad property manager

 

[MKP]

I agree self manage is not easy; but we had unpleasant experience (with rent and maintenance) from professional PMs in the past - hence the self manage decision, and will still do this for few more years. Our other tenants on other IPs are mostly tenants from heaven, so self manage is not always bad.

Sounds like alot of work, imagine if you had 12 properties and had to do this for all of them

In the long run I find property managers (good ones that is) save alot of time and headaches.

We do self-manage one property, but that ones got an excellent military tenant and it's only 10 minutes drive from us.

 

[danwatto]

I have one tenant who pays in the middle of the month when the rent is due on the 1st of each month, I self manage and because I know him and trust him he probably will continue to struggle a bit. This Christmas he has paid his rent in 2 amounts and there is still a small amount owing which I know I will receive before the end of the month. I let him get away with this as he repays me by looking after my property [which is multi tenanted] and doing small repairs. He also watches and questions any strangers who visit the property. Its a mutual thing and I like him

I will now wait for inevitable loony replies that I am a bad property manager

Bad PM, Bad PM, *waves finger*

Sounds like a mutually beneficial relationship. Doesn't sound too bad IF you don't have to chase him. Would be ok if he's consistent, i.e. always consistently catches up without having to call and have a whinge that he should pay.

 

[wylie]

I have one tenant who pays in the middle of the month when the rent is due on the 1st of each month, I self manage and because I know him and trust him he probably will continue to struggle a bit. This Christmas he has paid his rent in 2 amounts and there is still a small amount owing which I know I will receive before the end of the month. I let him get away with this as he repays me by looking after my property [which is multi tenanted] and doing small repairs. He also watches and questions any strangers who visit the property. Its a mutual thing and I like him

I will now wait for inevitable loony replies that I am a bad property manager

I think you are a practical PM. Your situation sounds like it suits you, you get paid, sometimes a little late, but better late than never. You each understand the needs of the other. Win/Win.

I agree self manage is not easy; but we had unpleasant experience (with rent and maintenance) from professional PMs in the past - hence the self manage decision, and will still do this for few more years. Our other tenants on other IPs are mostly tenants from heaven, so self manage is not always bad.

I don't find self-managing difficult at all. I've been doing it for a long time. I don't have many to manage, but from what I read, what I do to fully manage what I do is less work and time han some people spend managing their managers.

 

[skater]

almost every Dec I chase rent and every January I sat down with them and showed them a simple money management. Food and medical is the first First priority; then rent, bills, and pressies. But they just can't help it, the same pattern appears every christmas. So, this year, since about september, I asked them to pay extra $20-30 rent every week, so their christmas rent can be covered by the extras. So far this year, I haven't needed to chase them, but I won't laugh yet because thei week's rent is still yet to be paid.

OMG!! The sheer thought of that terrifies me. But then, we've got a fair few properties!

I can only imagine how some tenants may have a knee jerk reaction to their 'superior' or 'rich' LL sitting down & trying to organise their finances.

I use PM's for this kind of thing. Out of all my tenants, I may get one or two that fall behind slightly, but the PM's get onto their case quick smart & they pay up pronto!