Tenant in arrears

Discussion in 'Property Management' started by tess85, 8th Feb, 2011.

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  1. tess85

    tess85 Addicted to SS

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    Today we received this email from our PM. Never having had this situation before, I'd like to know what other SSers think. The tenant pays rent of $180 pw.

    Your tenant in the granny flat has fallen behind in her rent. She is currently paid to the 7th February and her next rent deduction is not until the 18th February, 2011., ie., 11 days in arrears. As the law states the tenant needs to be 14 days in arrears before we can issue a termination notice, we have organised the tenant to come to some arrangement to repay the arrears.

    She has offered to repay the arrears at $50 per fortnight. This will obviously take 4 months for the arrears of $360 to be paid.


    I was thinking of asking the PM to get the tenant to repay arrears at $60 per fortnight. It's only $5 more per week and would means the arrears gets repaid sooner.

    Would be grateful to know what people think!
     
  2. skater

    skater Capitalist

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    She is only (or will be on 18th) 11 days in arrears and she is already agreeing to pay an extra $50f/n to bring it back to where it should be? Sheesh! I wouldn't rock the boat. I'd take that!

    In all honesty, a dodgy tenant knows that they can get away with a whole lot more than this. If they are offerring this BEFORE they get notices, then I think they might just be trying to do the right thing.
     
  3. marg4000

    marg4000 Member

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    How can your tenant be in arrears if paid up till the 7th February, today is only the 8th??

    If the next payment is not due until the 18th then clearly the billing period is in arrears rather than in advance.

    Sounds like the payment setup is the problem, which is hardly the tenant's fault.
    Marg
     
  4. tess85

    tess85 Addicted to SS

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    Thanks Skater and Marg!

    I'm somewhat confused - as Marg pointed out, as of today when I received this email, the tenant is only 1 day in arrears... need to go over the rental statements again...
     
  5. bluestorm

    bluestorm Banned

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    tess85, I read the title and thought a problem tenant maybe 3mths in arrears. Then read she was payed up to 7 Feb. Maybe she did miss a fortnights rent?, so it behind the normal payment cycle now, but she's willing to catch back up with $50/wk.

    Unless your in urgent need of the extra 2 weeks rent upfront straight away, I would be a little considerate this time. Sounds like a good tenant who may have just had a one off out of pocket expense?.
    I would let the first one slide. However if it happens again, then maybe be more firm.

    This time is just sounds like the agent is also covering their ar##s3, but letting you know in advance that at one point in the cycle, it will be 11 days in arrears.
     
  6. charlieandkath

    charlieandkath Member

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    Where is the property? Could you get $200 a week wiyh a new tenant? When was your last rental increase? Could be a opportunity to start again.

    However if all above is not to worry about then I would be giving this tenant another chance and by the sounds of it there may not even be an issue at all.