tenant can't pay rent

[whitt]

here is my problem. NZ rental.

Tenant very erratic at paying rent have had to send a warning notice 6 months ago to pay up. And just sent another out last week for same thing ( 2 weeks behind).
Spoke to them and they have said they will keep paying rent each week but are unable to pay the 2 weeks arrears.

they also have mentioned that in 4 months they will most likely be moving out as they are moving town. And we can take outstanding rent out of the bond.

They keep the property well looked after and we are happy with them as tenants. Do I enforce my warning notice just issued and if they don't pay up all arrears take to tribunal and apply for eviction?
Only thing is I want to be careful as I don't have landlord insurance ( I have standard house & contents for rental property)like I had on my Australian property as it never exisited in NZ when I bought property a few years ago ( although last week i found a place in NZ which does provide it now. )

they way i look at it is i will be looking for a new tenant soon or in 4 months anyhow. Maybe the reality of possibly having to face the tribunal will get our arrears paid up quick.

Any ideas?

 

[Les]

G'day Whitt,

One conservative idea would be to consider what time of year is best for renting a property. I've heard that Summertime is a good time for finding tenants, while the Winter months are not so good. Using just that one parameter, perhaps "get 'em out now" is better for you?

A May-June-July tenant may be prepared to pay less, simply because of the "supply/demand" curve.

And, maybe that tenet changes with the location (city) of the property...??? e.g trying to get a tenant in Timaru in Winter would likely be more difficult than getting a Winter tenant in the Bay of Islands...

Perhaps Asy, JoannaK or others with specific PM knowledge might like to comment here,

Regards,

 

[asy]

Hi Whitt...

I would be inclined to put them on a payment plan to catch up. If they are otherwise good tenants, and still have 4 months to run, ask them to pay an extra $20 per week until they are caught up.

Two other issues, firstly, if you take out landlord insurance, cover is usually immediate. I'd ring the company and explain the situation. FULLY. That way they will be able to advise you properly. With luck you can get immediate coverage in the event that you require it.

Also, Les is right, some times of the year are more difficult to find tenants in than others. If it is advantageous to you to excersise your right to evict them now, then it may be worth considering. Your PM should be able to give you this area specific information.

hope this helps,

asy

 

[Skye_30]

Have you asked the tenant if they would consider paying by direct debit? Then also put them on a catch-up agreement to pay of the arrears owing. Probably at only around $10 extra a week as if you ask to much they are unlikely to pay.

I used to be the treasurer of finance for a housing co-operative group. My duties included being the rents officer. Often people who are bad at paying rents often come good under the direct debit scheme (some people just arn't physically good at paying bills). The only thing is, depending on which bank they are with it will come at charge to them to do this, usually only around $1.

 

[whitt]

tenant can't pay

well i approached the tenant and said we were happy with them and would they consider a catch up payment. they initially said they could not pay any more. But after some discussion we came to an understanding that they would make an effort to pay an extra $20 PW. I will monitor the situation carefully now and see how it all unfolds in weeks to come.

 

[Les]

G'day again, Whitt,

they also have mentioned that in 4 months they will most likely be moving out as they are moving town. And we can take outstanding rent out of the bond.

Just beware..... This can leave you with NOTHING if they happen to leave with the place in a mess.... It sometimes happens with tenants that they think the Bond is their money, and can be "negotiated" - and it is, so long as they leave the place in tenantable condition - but what if they DON'T ?????

Regards,

 

[whitt]

tenant can't pay

Les

I have told the tenant the bond is non negotiable and it is there as protection for both parties untill the end of tenancy.

 

[Les]

Good work, Whitt !!!!!!!

Regards,

 

[XBenX]

Good work Whitt - seems like you have avioded a potential problem. Perhaps now ask them to confirm if/when they are moving out so you can start advertising for tenants early and reduce/remove any vacancy period

 

[Kevin Hockey]

My experience has been once you have a money problem with a tenant you will continue to have problems. It is never about if they have enough money, it is their attitude to responsibility.

Without knowing all the details about the situation I would suggest moving them on. Do it now and you can get your 2 weeks out of the bond, wait 4 months and the rent arrears or clean up bill may exceed the bond amount. Go to the bank and see how sympathetic your manager is to the tenants problems. They want your mortgage paid and the tenants are taking unfair advantage of you.

www.nundahrealestate.com.au

 

[tonyd]

Originally posted by whitt

Only thing is I want to be careful as I don't have landlord insurance ( I have standard house & contents for rental property)like I had on my Australian property as it never exisited in NZ when I bought property a few years ago ( although last week i found a place in NZ which does provide it now. )

Hi Whittaker,

Which NZ insurer was offering the landlord insurance?
I've had the same concern that malicious damage by tenants isn't covered by NZ policies. I'd like to inform my insurance broker that this option exists.

cheers, Tony

 

[whitt]

nz insurance`

tony

there was two seperate companys that had landlord insurance for NZ. I don't have either yet as I had only just started looking the other week.


1-Rentsure.
2-Shore insurance. ( I did ring this company and they gave a quote straight away)

if you would like there details drop me a line and i will dig it out for you.