I've landed a tenant that has never paid rent on time (on average two weeks late). I am always chasing him for rent and he never returns calls unless he wants something from me. He is very high maintenance. What are my options in getting him out? There is another 10 months of a 12 month contract.
Tenant not paying rent
- Thread starter bello
- Start date
Your self managing, yes??
Appoint an agent asap not just to sort out issues but to also give you some piece of mind.
If you have an agent then the agent isnt really doing his job - terminate and find one that will.
As an investor your mind-set is parramount and you can not afford to the little things worry you - look at the big picture and stay focused.
Your agent should be advising you of your rights and tenants rights in this situation and discussing the options with you
Appoint an agent asap not just to sort out issues but to also give you some piece of mind.
If you have an agent then the agent isnt really doing his job - terminate and find one that will.
As an investor your mind-set is parramount and you can not afford to the little things worry you - look at the big picture and stay focused.
Your agent should be advising you of your rights and tenants rights in this situation and discussing the options with you
I am self managing have have been so for a long time. I normally find good tenants but for some reason I fell for it and dropped my gard. They advised me that they sold their house and were cashed up and therfore had no references. I will never get another tenant witout a rental history and a reference
Disagree.
If you end with a bad Property Manager, you have two problems and paying more money.
I suggest to ride it out, continue chasing, and don't renew.Just accept this tenant is playing within the rules. Soon as he crosses over, then be prepared.
As far as I can see, this is what you are doing.
You are trying to find out what to do.
Given the information of the original questions - what are my options?
my advise was to terminate the PM if the property is not self managed because it is obvious to me that the PM should be providing the options to the landord - giving the landlord a choice.
Also; as it is privately rented by appointing an agent and informing the tenant as such will put the tenant on notice that things are changing and are not going to be handled the way they have been, an agent wont nessasary terminate the tenant due the renta arrears but does have more knowledge how to deal with the tenant and how to get the tenant back on track.
He is trying to train you to accept two weeks late, then 3, then getting behind. As soon as he is one day late send him a Notice to Vacate which should give him a fright first off, even if he is a professional tenant and realises the next minute you couldnt make it stick. Keep copies, and keep sending every time, this should make him realise you are onto it and not going to keep letting this happen. Ignore all requests for anything other than extreme maintenance. A friend of mine had one of these, and they would complain about something, the pool filter doesnt work, etc. and just stop paying rent until it was fixed. Eventually got her to agree to pay half the cost of new carpet, she flew interstate to choose top quality carpetand next time she saw it down, it was just cheap carpet so the tenant had just got her to pay the whole cost for new carpet. They are trained professionals - and she's a property manager too.
...but of course, this is one of the great fallacies portrayed by the "industry" that things are going to change and smarten up once a PM is appointed. Poppy-fiddlesticks to that. The seasoned tenant knows only too well, that it doesn't matter who is writing to them - Landlord or Landlord's Agent, at the end of the day they all need to conform to the grossly out of kilter RTA legislation.
The seasoned tenant knows the law is all their way - every step of the way. For these guys, it's not the mortgage vs rent debate that drives them to rent.
It's the fact they can do nothing, be responsible for nothing, and string the rent payments out in whatever fashion they wish, and then know full well as long as they finally dribble it out erratically, or indeed enter into a catch-up plan and be given a second or even third chance at tribunal, all the while thumbing their noses at the infuriated Landlord whose cashflow projections have all gone out the window whilst the hapless PM still sits there saying it'll be OK meanwhile skimming fees and charging up to $ 90 / hr to represent the Landlord. Beautiful work if you can get it.
If the tenant is purposely trying to get off track, there is absolutely bugger all the PM can do that the Landlord cannot do. They simply represent the Landlord's interests. They have no special powers whatsoever.
All of your options are listed in the RTA. It's by no means a weighty document. Have a read, it's all the PMs do. God knows, even fledgling PM's can pass the closed book exam on the document after just 5 days study. It ain't rocket science by any stretch.
Nice one. They have many tricks in their book. Fundamentally it comes down to both the Landlord and PM not being able to verify the BS stories that emanate from their home. Just cough up and pay. Saves a whole bunch of stress.
I do agree in essance with your post.....
I would like to add that i am not against lanlords self managing, i have posted advice to others and recently provided a link to a site which has advice and legal requirments for rental properties in all states.
What i would like to say is that a good property manager can get you out of this and be able to advice you on your options etc.
A landlord that self manages and does not know what to do and how to fix/resolve a simple problem or looses sleep because of the issues involved in managing their investments is only going to lead to more problems, the way i see it you either need to appoint a PM (search this site to find out how to interview/locate a GOOD PM - not any PM) or educate yourself so that you understand your rights/ the tenants rights and what to do in all type of situations.
btw that is a common ploy for a pro tenant who has a trail of wreckage behind them.
We had one who gave us the lived with parents story. Turned out to be a huge problem tenant who we removed. They promptly got a home through another local agent who fell for the "we have never rented and lived with our parents" routine. We have since found this out and given a heads up to the agent.
Sounds to me this tenant is playing within the limits of your laws.The PM can not do anything more than a LL, except take more profit from the LL's bank account.
Bello was asking what their options were. As they are trying to figure out the rules, and we all do at some point, I was trying to suggest , that as long as this tenant was paying within that 14 day period, he as might as well relax a bit.
We all have late paying tenants.We have 32 units and it's when they stop paying we start to worry, and then act within our laws. We need to wait 45 days before we can issue an eviction order.
Check your lease agreement for a "termination clause".
For example, do you have a clause "The Owner may give the Tenant at least XX days notice to terminate the lease agreement without specifying any ground for the notice..." ??
Alternatively, visit the tenant and have a chat with them about bringing the lease to an end. One of two things will happen - either they'll agree to move on, or they'll refuse and then you'll know how tough its going to be to move them on... either way, you know! Then you can work out your strategy from that point forward.
Agree with other comments posted, that timely documentation/letters are important.
Hang in there... its unfortunate that one bad tenant can sometimes distract us from the many good tenants and experiences about being a landlord
)
For example, do you have a clause "The Owner may give the Tenant at least XX days notice to terminate the lease agreement without specifying any ground for the notice..." ??
Alternatively, visit the tenant and have a chat with them about bringing the lease to an end. One of two things will happen - either they'll agree to move on, or they'll refuse and then you'll know how tough its going to be to move them on... either way, you know! Then you can work out your strategy from that point forward.
Agree with other comments posted, that timely documentation/letters are important.
Hang in there... its unfortunate that one bad tenant can sometimes distract us from the many good tenants and experiences about being a landlord
)What would be the use of a lease document if it includes such a clause? I know we are all concerned for the owner here but who in their right mind would enter into a contract (which is what it is) to lease a property with a get out clause for the owner like that.
Just asking
This happened to us a while ago with tenants not paying. As soon as the seven days was up, we would issue a notice to remedy breach (Queensland properties). Each time they would pay. Unless they pay in full, they are still in breach.
As long as you keep on their backs, you will either keep getting rent or they will keep going into breach, and each time you issue the notice to remedy.
Either they will get sick of you annoying them, and pay on time, or they will stay in breach in which case you start proceedings to get them out.
Make sure you document everything in case you have to take them to the tribunal. Make very sure of your dates when you can issue notices. If they want to play the game, you can play it too.
As long as you keep on their backs, you will either keep getting rent or they will keep going into breach, and each time you issue the notice to remedy.
Either they will get sick of you annoying them, and pay on time, or they will stay in breach in which case you start proceedings to get them out.
Make sure you document everything in case you have to take them to the tribunal. Make very sure of your dates when you can issue notices. If they want to play the game, you can play it too.
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