Tenant defaulted......sob story....what should I do?

[Lil Skater]

Why did you PM wait two weeks to apply to VCAT after the notice was sent?!?

If they're still two weeks behind issue another notice to vacate and after 3 days of non-payment get the PM to apply for VCAT for rent arrears.

If the tenant pays, good and you can use this evidence at a later date if they fall into arrears again, if not then off to the hearing.

 

[ballontree]

it's all very confusing to me; they said they had to:
1) send me a notice to pay or else vcate (estimate 5 days)
2) and then official notice to vacate or else vcat (2 weeks)

they said they need to provide proper notice (2 weeks) or else vcat will throw it out and they have to start with the notice again



ETA:
i think almostbob is right, I need to read the rules/laws of the vcat thingy. All these info is provided by the PM. I just took it at face value because I do not know.

I have asked PM to do vcat now.

 

[ballontree]

If they're still two weeks behind issue another notice to vacate and after 3 days of non-payment get the PM to apply for VCAT for rent arrears.

we have gone thru this:
- please pay up or else notice to vacate will be issued (5 days)
- notice to vacate or else vcat (2 weeks)

tenant paid up, but still 2 weeks in arrears.


do we vcat now or? notice to vacate?

 

[Munchkin]

How far behind are they when they are being given the 'please pay up or else notice to vacate will be issued'?

Ours just straight away issued the notice to vacate as soon as they were 2 weeks behind and regular phone calls every couple of days pushing them to pay before as soon as they were even a couple of days late

 

[Lil Skater]

I don't know what your property manager is doing, but they're wrong.

If your tenant gets 14 full days in arrears you issue a Notice to Vacate immediately, no waiting 5 days and see of they pay then issue the notice.

Then, 3 days after the notice has been sent (by registered post) you apply to VCAT for possession of the property.

We're at 18 days now, not a month.

VCAT will then schedule the hearing for the notice to vacate expiry, or not long after. If the tenants have paid IN FULL by this date you can ask for an adjornment, if they are still in arrears no matter the amount you continue with the hearing no ifs or buts. It is then the tribunal who will determine whether the tenant can stay or not.

I'd be making sure you landlord's insurance isn't void due to this mishap.

 

[ballontree]

called to PM, and was told this:
- in arrears means behind rent
- tenant paid up til yesterday, so tenant is 1 day in arrears
- tenant is not 2 weeks advance as the contract stipulated, but tenant is not 14 full days in arrears

 

[ballontree]

If your tenant gets 14 full days in arrears you issue a Notice to Vacate immediately, no waiting 5 days and see of they pay then issue the notice.

Then, 3 days after the notice has been sent (by registered post) you apply to VCAT for possession of the property.

Ah! this is what my PM has done differently;

My PM did the following:
- tenant gets 4 weeks in arrears, I had to ask them to issue a Notice to Vacate
- they mailed a registered post (to ask for payment - tenant did not return any calls); wait 6 days (2 of them are weekend)
- then mailed out a notice to vacate (2 weeks) or else vcat

tenant promptly paid up all rent until yesterday,

tenant should paid up yesterday + 2 weeks though



PM said nothing he can do, tenant is not 2 weeks in arrears.............

 

[ballontree]

How far behind are they when they are being given the 'please pay up or else notice to vacate will be issued'?

4 to 5 weeks

 

[matto_]

meanwhile - have you started the process to get a new PM.

Sounds like the old one is not quite where you need them to be.

 

[ballontree]

yeah, they are a bit werid; should I wait until tenant is 2 weeks advance on his rental before changing PM or?

 

[Lil Skater]

4 to 5 weeks

No, 14 full days. I am a property manager in Victoria, I know the law and your PM has NOT been doing the right thing if they're waiting 4-5 weeks.

Yes, if they've paid and they are 1 day late there is nothing your PM can do at the moment.

 

[Munchkin]

4 to 5 weeks

Wow, that is terrible!

Why would they send a 'warning' that they would get a notice to vacate when they should have already had one weeks earlier?

 

[HotRod]

I suggest you speak to the principal of the company and let him know it's in his best interest to make sure your PM does things by the book, otherwise you will go elsewhere. I'm sure not doing things as per the RTA is grounds for giving your PM the flick, might need to check you MA first.

 

[ballontree]

i'm babysitting this now; tenant is now 1 week late (he paid up); tenant should pay 3 weeks to be in front.

PM explained the process to VCAT to me:
- condition 1: tenant needs to be 2 weeks late in rental
- condition 2: send him a 2 weeks notice to pay up or VCAT
- condition 3: at the end of the 2 weeks notice (4 weeks late), if tenant is more than 2 weeks late in rent, apply for VCAT; if tenant is less than 2 weeks late in rent, start over from condition 1

 

[jingo]

yeah, they are a bit werid; should I wait until tenant is 2 weeks advance on his rental before changing PM or?

Ballontree, you need to manage this situation and your pm NOW. You are being taken for a ride by both your current pm and the tenant because you are not clear on the procedure for managing a non-paying tenant in Vic.

Get rid of the pm now - if you post details of where your property is located, you may get some recommendations of decent property managers from investors on the forum.

The process to change pm is very easy. Contact the new pm and they will handle the transfer for you. All you will need to do is provide your current pm with a letter/email saying that xxxx property manager/company is now taking over management of your property.

 

[Lil Skater]

i'm babysitting this now; tenant is now 1 week late (he paid up); tenant should pay 3 weeks to be in front.

PM explained the process to VCAT to me:
- condition 1: tenant needs to be 2 weeks late in rental
- condition 2: send him a 2 weeks notice to pay up or VCAT
- condition 3: at the end of the 2 weeks notice (4 weeks late), if tenant is more than 2 weeks late in rent, apply for VCAT; if tenant is less than 2 weeks late in rent, start over from condition 1

How many times do I have to say it is incorrect??

I know you do not know me from a cereal box, but I have told you there is NO mediation clause you must obey - Ie. give them two weeks to pay.

You issue a Notice to Vacate as soon as they hit 15 days late (14 full days) and apply to VCAT after 3. Total time to apply 18 days.

You need a new property manager, and need to stop listening to yours as they obviously do not understand the act. This may effect your landlords insurance as they haven't followed the correct procedure.

 

[Player]

Ballontree, you need to manage this situation and your pm NOW. You are being taken for a ride by both your current pm and the tenant because you are not clear on the procedure for managing a non-paying tenant in Vic.

Get rid of the pm now - if you post details of where your property is located, you may get some recommendations of decent property managers from investors on the forum.

The process to change pm is very easy. Contact the new pm and they will handle the transfer for you. All you will need to do is provide your current pm with a letter/email saying that xxxx property manager/company is now taking over management of your property.

^
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What he said.

Remove this property manager post haste.

 

[skater]

Get rid of the pm now - if you post details of where your property is located, you may get some recommendations of decent property managers from investors on the forum.

How many times do I have to say it is incorrect??

You need a new property manager, and need to stop listening to yours as they obviously do not understand the act. This may effect your landlords insurance as they haven't followed the correct procedure.

Remove this property manager post haste.

You've received some great advice here. Now, are you going to listen to it, or are you going to continue to be a 'victim'? The choice is yours.

 

[AlmostBob]

pet hate: learn the rules

 

[tvadera]

As others have said

-remove the old PM
- hire a new PM who knows the rules, is bit more pro-active in chasing arrears
- be prepared to tackle such situations (happens now and then)
- baby sit it ,to get things in order and then go with the flow

Where abouts is your prop?

Regards,
TV