Should tenants be given multiple chances?

[Xenia IM]

I am in the waiting room at the tribunal for the 3rd hearing for the day.
First one went well - bond refund for minor damages and cleaning.

The second one was arranged as an urgent hearing due to tenants not sticking to their payment plan that they agreed to in a previous hearing.

Our application was for vacant possession.
Reason - the tenant is unable to financially commit to a payment plan - history tells us this, and our landlord will be financially better off recouping debt from the bond and insurance while we re advertise the property for another tenant.

The tenant was put onto a plan to pay $100 extra above normal payments in September last year. They have not adhered to the plan and payments have been late - 2-3 days late over a period of time really adds up.

We were overruled - payment plan re-instated today by tribunal order.

Tribunals do this a lot!

So my question is, aside from the unfairness of a landlord having to hold that debt with no interest and forced to act as a charity, are these multiple chances fair to a tenant?

The trend I have seen over the years is tenants falling further and further into debt as each fortnight adds a new payment and new water invoice.

It's difficult for an individual with a capped income to recover from a $1000 or $2000 debt that just keeps increasing.

Businesses / entrepreneurs/ investors can trade out of it by creating more money but someone who relies on one income is unable to do that!

Where do tribunals think the money is going to come from?

Are they just increasing tenant debt to landlords and adding to insurance claims later?
It could have been stopped when tenants were only a few weeks behind!

Is it really fair to give tenants so many chances and increase their arrears as a result?

 

[wylie]

No, no and no... but with tribunal ordering this to happen... what can you do?

 

[Mr. Fabulous]

what can you do?

Ditch resi and invest in commercial.

 

[thatbum]

It really depends on the circumstances. One form of "failure to abide by the payment plan" isn't necessarily the same as another one - for example the amounts concerned or the timeframes involved.

In all the whining I've seen from landlords and PMs, I've never once seen them describe the matter on fair terms to both parties.

Meanwhile, if you read any published case, its pretty clear what the logic and reasoning was in either favouring the landlord or tenant's case.

 

[D.T.]

How come you have 3 tribunal hearings in one day?

 

[Xenia IM]

How come you have 3 tribunal hearings in one day?

It's my lucky day!
They tend to stagger them for each agency which actually works well!

 

[kathryn d]

They should only be given second/ multiple chances, if the Landlord approves it.

We are very lucky in our area (Canada)
If a tenant doesn't show up at a hearing, it continues without them.
We get a judgement (usually mailed).

If the tenant shows up, and agrees to a mediated settlement, aka payment plan,
as soon as it is breached, the landlord can go for eviction, and have the mediated settlement converted into a judgement for enforcement.
Still takes about 2 weeks to go thru, before the Sheriff can enforce.


Tenants know they can get away with this crap, and it will only continue to get worse.

 

[pinkboy]

How does a CEO find the time to go to Tribunal? Don't you have plebs for that?


pinkboy

 

[Peter_Tersteeg]

A bad tenant might one day wake up to themselves, get their ***** together and do the right thing by the landlord.

They're highly unlikely to do this after they've had a bit of success at a tribunal hearing, or after a landlord has given them the benefit of the doubt. More likely they'll change their ways after spending a few nights sleep in the car or a homeless shelter.

Thus I say get rid of a bad tenant, you're not going to rehabilitate them yourself. Hopefully after they've been kicked around a bit, they'll get their own act together and the next landlord will have better luck with them.

 

[pully]

tenant selection is very important. some of these tenants that become problems are chronic debtors with arrears in not just rent but other areas. it seems the attitude by some is, cannot get blood out of a stone and simply write off the debts.

problems if arise need to be acted on immediately and process followed absolutely in accordance with the rules. no exceptions. this will mitigate some losses. the dirt and damage ones can be more difficult.

property managers have a very responsible and difficult job and the landlord has the most to lose. life is too short for much of this.

some of these tenants with multiple problems should be managed in social housing by professionals.
chose your tenants carefully, and your property manager of course.

 

[wylie]

Ditch resi and invest in commercial.

or... try to choose better tenants .

 

[Jamie M]

are these multiple chances fair to a tenant?

haha - you'll get a resounding NO from SS.

I don't think multiple chances are deserved - it's unlikely the behaviour is going to change.

Cheers

Jamie

 

[marg4000]

Seems a rather pointless question to ask on a forum which consists mainly of landlords.
Marg

 

[skater]

Is it really fair to give tenants so many chances and increase their arrears as a result?

Screw the tenants (figuratively, that is). It's not fair on the Landlords, who are forced to act as a Charity. The tenants that are serial defaulters aren't going to get their acts together anytime soon, and most likely will never be made to pay up.

 

[pinkboy]

or... try to choose better tenants .

Good and experienced PM's wouldn't be putting tenants in their LL rentals and be attending tribunals very often would they?


pinkboy

 

[Xenia IM]

Good and experienced PM's wouldn't be putting tenants in their LL rentals and be attending tribunals very often would they?


pinkboy

The industry norm is that up to 5% of tenants will on a rent roll will be in default.
A property manager cannot control a tenants personal financial situation.

and s.h.i.t YEAH we represent landlords at tribunals - that's our job!
The tribunal today was FULL of property managers representing landlords.
that's why we make all the $$$$$$

 

[jim1964]

Good and experienced PM's wouldn't be putting tenants in their LL rentals and be attending tribunals very often would they?

In all fairness........you never know.I had a tenant today evicted with vacant possession after nearly 8 weeks not paying ANY rent.She used a SA Housing Trust Bond and paid 2 weeks cash in advance,then became
uncontactable.Normal looking,speaking,acting single mother,all the checks were ok, i approved her on the check basis,you just never know.

 

[jim1964]

The tribunal today was FULL of property managers representing landlords.

This wouldnt hapen with a labor government...................food for thought

 

[Peter_Tersteeg]

Good and experienced PM's wouldn't be putting tenants in their LL rentals and be attending tribunals very often would they?

or... try to choose better tenants .

Not vary fair comments. I've had tenants who were great for a couple of years, then went bad when their relationship broke down. The PM did a great job of managing the crisis however.

 

[Xenia IM]

Not vary fair comments. I've had tenants who were great for a couple of years, then went bad when their relationship broke down. The PM did a great job of managing the crisis however.

Thank you Peter

if you see how private landlords use emotional outbursts and blame games to negotiate at tribunals, you will really appreciate the professionalism of a great PM!

Or - manage it yourself!
Trust me, you will still get tenants going into arrears and property damage. - actually way more!