Tenant behind with rent - or not?

[Minxdamanx]

Just wondering if you could clear something up for me.

Our tenants originally paid 2 weeks in advance when they moved in. Then fortnightly payments of 2 weeks rent. Therefore each time they paid the rent the were in effect paying in advance.

Fast forward several months and tenants fail to pay due instalment. I found out at end of month, have a fit and am told that the tenants don't have to pay in advance and that they are now just up-to-date. So now instead of paying a fortnight in advance they are paying a fortnight in arrears. Our PM tells me that this is fine and that the tribunal will never force a tenant to pay in advance.

As far as I'm concerned they have missed a payment. Is this normal? Why get the tenants to pay a fortnight up front at the beginning? Surely it doesn't mean they can just miss a payment at their convenience?

It's bugged me for a while - I just wanted to know what others have experienced.

 

[The Fence]

Rent must be paid in advance at all times, I make a point of it with our tenants (only in 1 IP, the others are always a month inadvance) and remind them after just one day late and every subsequent day they remain late until it's paid.....I'm a pain in the a55 to them I'm sure, but it works....now they are back to 2 weeks in advance again....

After 14 days in arrears I will issue eviction notice.....it's business and you should stick to your guns and not bother with what some people will tell you about tribunals etc.....learn the laws for your State and know them backwards and quote them to tenants....

I believe it's totally wrong and irresponsible for a PM to tell you that it's ok for a tenant to be in arrears.....just my 2c....

 

[jaycee]

I think it comes down to, you are always paying in advance.

Move in date PAY 2 weeks in advance
Week 1
Week 2 PAY 2 weeks in advance
Week 3
Week 4 PAY 2 weeks in advance
Week 5
Week 6 Teant leave (no rent owing)

 

[Collector]

I think it comes down to, you are always paying in advance.

Move in date PAY 2 weeks in advance
Week 1
Week 2 PAY 2 weeks in advance
Week 3
Week 4 PAY 2 weeks in advance
Week 5
Week 6 Teant leave (no rent owing)

Yep...


Minxdamanx,


If I read correctly you tenant paid 2 weeks in advance prior to when they moved in: i.e. when they signed the lease they paid 4 weeks bond, 2 weeks in advance and the lease prep fees (this could have happened 2 weeks prior to lease commencement).

When they moved in they paid another 2 weeks rent and continued to pay 2 weeks each fortnight, then some time later missed 1 payment - but after that missed payment they have continued to pay 2 weeks each fortnight?

If that is correct then your tenant were 4 weeks in advance when payment was made. They realised that they were that far in front and adjusted accordingly


Do you self manage? if not:

The easiest way to check if you tenant is paying on time is to check your statement at the end of each month - check the tenants paid to date - if it is at or past the statement date then your tenant is paying in advance.

You could also ask your PM for a copy of the tenant ledger.

 

[Minxdamanx]

When they moved in they paid another 2 weeks rent and continued to pay 2 weeks each fortnight, then some time later missed 1 payment - but after that missed payment they have continued to pay 2 weeks each fortnight?

If that is correct then your tenant were 4 weeks in advance when payment was made. They realised that they were that far in front and adjusted accordingly

Not quite Collector. Tenant paid the two weeks in advance when they paid the bond. Then at the END of the first fortnight paid another 2 weeks. Therefore only 2 weeks in advance. A month or so later they skipped a fortnight. Hence they are now paying 2 weeks rent in arrears i.e. AFTER the 2 weeks.

I don't self manage. The PM tells me that she cannot force them to pay this 'missed' rent as the tribunal will never enforce that a tenant must pay in advance.

I suppose what I'm really querying IF a tenant can't be made to pay in advance WHY is it the norm for the tenant to pay the first 2 weeks in advance with the bond? Surely if it's legal at this point, it would remain so until the end of the lease and I can't understand why this wouldn't be enforced by the tribunal?

 

[rugrat]

Your pm is a twit. They are in arears.

 

[familyguy]

Rent is always paid in advance, tell your PM to grow some balls and enforce it by sending out the appropriate notices. If your tenants don't/can't comply then in all probability it will end up at the tribunal and they will be put on a payment plan. The lease we use here in SA has the rent payments spelt out clearly on the first page of the lease, it doesn't take many brains to read it and work out that rent is paid in advance. If your tenants are not paying two weeks in advance then they are in breach of their lease and the tribunal will uphold it. If your PM argues then ask for a copy of the lease.

 

[Collector]

Not quite Collector. Tenant paid the two weeks in advance when they paid the bond. Then at the END of the first fortnight paid another 2 weeks. Therefore only 2 weeks in advance. A month or so later they skipped a fortnight. Hence they are now paying 2 weeks rent in arrears i.e. AFTER the 2 weeks.

I don't self manage. The PM tells me that she cannot force them to pay this 'missed' rent as the tribunal will never enforce that a tenant must pay in advance.

I suppose what I'm really querying IF a tenant can't be made to pay in advance WHY is it the norm for the tenant to pay the first 2 weeks in advance with the bond? Surely if it's legal at this point, it would remain so until the end of the lease and I can't understand why this wouldn't be enforced by the tribunal?

Thanks for clearing that up...

You need to read the lease.

In NSW (I would think that it would be same in WA) the lease states: The tenant is to pay (insert amount) in advance on (insert day) of each (insert week/fortnight/month)


If the lease states that rent is to be paid in advance then it can be enforced.

 

[Minxdamanx]

If the lease states that rent is to be paid in advance then it can be enforced.

Yes it does say ' in advance '.

I will instruct the PM to get them sorted. If it goes to tribunal then I will KNOW what they will or will not deem as 'in arrears'.

Thanks for the input everyone.

 

[Dazz]

G'day Minxy,


Quoting directly from the WA Residential Tenancies Act 1987 :



Section 28 : Rent in Advance

28 (1) A person shall not require before or during the first 2 weeks of the tenancy under a residential tenancy agreement as rent under the agreement an amount exceeding 2 weeks rent.

Penalty : $ 400



28 (2) A person shall not require any payment of rent (other than the first payment) under a residential tenancy agreement until the period of the tenancy in respect of which any previous payment has been made has elapsed.

Penalty : $ 400


My interpretation from that Minxy is that you do have the right to charge rent 2 weeks in advance, throughout the entirety of the Lease term.

The very best that you can hope for as a Landlord is that the Tenant is 14 days in advance on the day they pay it.

If what I read above from your earlier posts is correct, the Tenant by skipping that fortnightly payment is now only 'up to date' on the day they pay you rent, and then falls behind 14 days. You have a right to ask them to get back in advance.



All IMHO of course. Get comfortable with the governing wording yourself before you act upon anything.

 

[Perp]

I think perhaps your PM miscommunicated the issue. You can insist on two weeks in advance, but then your tenant has 14 days to pay (in WA). So if you issued an arrears notice the day after their payment should be there and isn't, they'd be "caught up" within the allowable time-frame, and in fact, they'd then have missed the "next" payment.

eg Day 1 - fortnightly in advance payment due (which they'll pay on day 15). Day 2 - issue arrears notice, they have until day 16 to pay. On day 15, they make day 1's payment, satisfying the arrears notice. On day 16, you issue another notice for the payment that was due on day 15, and so on, ad infinitum....

So in a sense, if they're completely regular in their payments, it's somewhat true that there's nothing that you can do. The advantage, though, in having a "two weeks in advance" clause in the lease, is that they do start falling into arrears (for occupancy days 1-14) on day 2, and start the 14 days counting that trigger all the processes. If your lease didn't say two weeks in advance, then they don't even fall into arrears until day 15, and have another 14 days from then to make the payment for days 1-14 of occupancy. ie You couldn't initiate Tribunal/eviction proceedings until at least day 29, whereas in your present situation, if they miss the payment on day 15, you can initiate these proceedings on day 16 (ish, excluding postage etc).

 

[Minxdamanx]

Ozperp & Dazz

Thanks very much for the detailed replies. It is now perfectly clear.

They did it again several months later (again not communicated to me until I got the statement) and were issued an eviction notice, but caught that one up (with aid from Anglicare!)

Now that I am aware of what the act states I will make sure that my PM is on top of it. She now knows to inform me if they are late by even a day.

I hate 'surprise' amounts turning up in my account - it really p's me off, but I think the PM now understands that.