Tentant in arrears - Notice to vacate question

Hi all,

Ive currently got an IP which the tenants are constantly paying the rent late from the time they have moved 5 months ago. They seem to be paying in dribs and drabs and are constantly short but not short enough of the 14 days for a letter to vacate to be issued. Reminder letters have been sent on numerous occasions without much luck. Finally last week they were more then 14 days behind and a letter to vacate was issued. I was just wondering what happens now if they dont decide to leave and it goes to the tribunal?

The tenants have advised that they cannot afford to pay up the arrears in full and can only afford $50 extra per week to make up for it. I would prefer not to accept that as its going to take well over 6 months for me to make up for the arrears if that happens and thats assuming they keep up to their promise. Just after advise on what else I can do here? Will the tribunal accept their $50 a week extra and allow them to stay? Will they push for more? What grounds do I have to not accept that? Personally I would prefer that they pay at least an extra $200 a week to make up for the arrears or they just leave and I keep the bond claim the arrears and other costs on the landlord insurance?

All input appreciated.

Thanks in advance.
 
Hi Zayne,

It sounds like your tenants were 14 days behind long ago. It doesn't have to be 14 days in one go, just 14 days behind all up.

Don't make arrangements to catch up when this far behind, instead have the tribunal make the orders to pay, that way they stick to the agreement or they're out.

Issue the Form 2 now, if you have not already done so. If you agree not to involve the Tribunal, I bet your bottom dollar, you will be even further out of pocket.
 
HI there
Dazz is a commercial guru on this site and Wylie upholds the residential flag having been in that particular game for a very long time.
Zayne there are times when the threads got quite heated between the two. Dazz is being very restrained at the moment - otherwise he would be telling you all the pros of commercial leasing and all the cons of residential leasing.
thanks
 
My parents had a similar situation a few years ago with tenants always falling behind. Once they got behind enough days to issue a "notice to remedy breach", my parents were able to then issue a "notice to quit".

Ultimately my parents took them to the tribunal to get them out. They were give (I think?) two months to find a new place, and any time within that two months if they got behind in the rent, they had seven days to move. (Cannot remember exactly the time frames, but they kept the payments up, moved out without my parents losing a cent).

From reading on this forum, I think that the time frames in Queensland are shorter and it seems other states have to wait longer times before "notice to remedy" can be issued.

I would issue the forms and get the ball rolling.
 
Thanks for all the input guys. Either the tenants knew the rules that a notice was not able to be issued until they were 14 days behind in rent or they somehow managed to fluke always being just under 14 days in arrears for the past few months. The letter to vacate has been issued and tribunal booked. Time to wait and see what happens now....
 
Not sure if you have a property manager, but in the past i have met with my tennents, and asked the question, "what can i do to make the situation any easier for you"
we negotiated a plan ,and knowing i was there to help and under stand i think i was'nt seen as that nasty land lord any more!
 
i was wondering what their rent was if $50/wk extra took 6 months to catch up ... that means their rent is around $650/wk.

that's pretty high rent for someone that appears to be struggling ... i would be encouraging them to leave because, if they're struggling now, and with rents rising the way they are, how are they going to afford when it goes up to $700/wk in six months time?
 
When does the lease end? Try to get the tribunal to negotiate that it be paid off before then, without ever mentioning that ofcourse, then when they are paid up you have the choice to renew or not.

At least you get your money back then, and have some bond if they don't pay in the last few weeks.

It's pretty poor when they start off so badly and have kept it up for 5 months.
 
Yep[, ive got a PM whos onto it. THey have booked the tribunal etc but I just wanna keep on top of it as well. Rent is currently $260 per week but given they were 2 weeks behind last week when the notice was issued plus the 1 month in advance that they should be paying, they are now actually 7 weeks short. Paying an extra $50 a week would take months to recover. The lease is up in April next year. Lesson learnt: dont do 12 month leases with a new tenant.
 
Chances are the judge will accept the extra $50 per week payment plan. I would just be hopeful they don't come up with some sob story and get a rent credit for hardship. Seen that one happen a couple of times too many in my time.
If you then want to get rid of the tenant at the exparation of the lease be very careful if you do a 120 day for no spacific reason you can be seen to be retaliotory by the tribunal and they will order an extension of time to the tenant. This one is for tenants who know the ropes and loopholes. Just be careful that's all.
Good Luck. Jasper;)
 
Thanks for the heads up Jasper. The tribuneral hearing was on Monday and the tenants now have to pay $100 extra per week on top of thier existing rental to make up for the arrears. Luckily they paid up a month just before the hearing so they are only 1 month behind now. Hopefully they stick to the payments from now on.
 
actually that is a realy good idea Zayne, especially in a land lords market, go a 3 month trial, and then negotiate a longer lease,
lets say your avg rent is 300pw, under a 3 month trial you say that you will charge 330 pw, if you see good buis prospects for them for a SAFE long term agreement then you will give them a 12 mth lease @ 300 pw and after the trial period is over you will return the $360 and sighn a lease for the next 12 months .
differance.
 
If they were brand new tenants I assume you only gave them an initial 6 month lease right? So just wait for the lease to run out and let them know you won't be renewing, and that you will be taking the owed rent out of the bond. Then up the rent by $whatever you can and hope your PM does a better job of vetting the next lot.
 
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