Constant rental arrears is certainly an area of great concern to both landlord ant tenants, the tenant falls behind by 5-10 days - you send a letter or notice the tenant pays, then with in 7 days the tenant is behind again by the same amount - ongoing - never ending.
There is a way to fix this.
I am of course referring to NSW legislation and this may not be relevant to other state, but it is worth checking.
1. The way the legislation is in NSW a tenant must be at least 14 days in arrears before a notice to terminate is issued, if you post this notice you will need to add an additional 4 WORKING days (btw you count this days at the beginning not at the end - it does make a difference). The tenant can make a payments - could be as little as 2 days in rent (if posted notice) and then you will have to start the process over again. - So it is advisable to hand deliver notices and have someone with you as witness/security/support.
2. You can also terminate a tenant for constant rental arrears - and the tenant does not need to be 14 days in arrears or has ever been in arrears by 14 days - not many landlords or PM's know this as it is not seen as standard and certainly not part of any PM's procedure manual.
To explain:
If your tenant has constantly paid late, you have constantly chased him and requested payment on time but the tenant has not complied, you are able to terminate the tenant by giving the tenant a 14 day termination notice for beach of Clause 2 of the Residential Tenancy Agreement(not for rental arrears).
Clause 2 of the residential tenancy agreements states: "The tenant agrees to pay their rent on time"
If the tenant does not vacate on the termination date and application to the CTTT is made and the tribunal will be required to terminate if you can prove that the tenant has had a problem with paying on time and if you can show that you have tried to get the tenant to pay on time. - I have been successful with this method each time I have used it.
3. When a tenant is constantly late with rental payments and the landlord does not want the lease terminated, we deal with this by first sitting down with the tenant to see why they are not paying on time - may be as simple as they transfer rent from their bank to our bank (different banks) on the correct date but the funds are delayed and don't appear in our bank for a number of days, or the rent date is not aligned with the pay date. If this fails us then make an application to the CTTT for a specific performance order - court orders the tenant pays rent on time. - if that fails and the landlord still wants to keep the tenant there is not much else one can do but simply accept the situation.
There is a way to fix this.
I am of course referring to NSW legislation and this may not be relevant to other state, but it is worth checking.
1. The way the legislation is in NSW a tenant must be at least 14 days in arrears before a notice to terminate is issued, if you post this notice you will need to add an additional 4 WORKING days (btw you count this days at the beginning not at the end - it does make a difference). The tenant can make a payments - could be as little as 2 days in rent (if posted notice) and then you will have to start the process over again. - So it is advisable to hand deliver notices and have someone with you as witness/security/support.
2. You can also terminate a tenant for constant rental arrears - and the tenant does not need to be 14 days in arrears or has ever been in arrears by 14 days - not many landlords or PM's know this as it is not seen as standard and certainly not part of any PM's procedure manual.
To explain:
If your tenant has constantly paid late, you have constantly chased him and requested payment on time but the tenant has not complied, you are able to terminate the tenant by giving the tenant a 14 day termination notice for beach of Clause 2 of the Residential Tenancy Agreement(not for rental arrears).
Clause 2 of the residential tenancy agreements states: "The tenant agrees to pay their rent on time"
If the tenant does not vacate on the termination date and application to the CTTT is made and the tribunal will be required to terminate if you can prove that the tenant has had a problem with paying on time and if you can show that you have tried to get the tenant to pay on time. - I have been successful with this method each time I have used it.
3. When a tenant is constantly late with rental payments and the landlord does not want the lease terminated, we deal with this by first sitting down with the tenant to see why they are not paying on time - may be as simple as they transfer rent from their bank to our bank (different banks) on the correct date but the funds are delayed and don't appear in our bank for a number of days, or the rent date is not aligned with the pay date. If this fails us then make an application to the CTTT for a specific performance order - court orders the tenant pays rent on time. - if that fails and the landlord still wants to keep the tenant there is not much else one can do but simply accept the situation.