To evict or not to evict

[geoffw]

Hi,

I'd be interested to get an opinion on this situation.

A tenant in a block is 8 weeks behind in rent (only $95pw).

Apparently there was a dispute with his Centrelink payments.

The dispute has apparently been settled. He has "promised" to catch up with arrears, but this might take some time.

The PM is suggesting I take it to the tribunal (NSW).

Before this, he was never late.

What would others do?

 

[Rolf Latham]

Hi GW

Their record speaks for itself.

Id set a defined catch up plan with the them. say pay 125 a week till caught up.

Ta

Rolf

 

[geoffw]

Thanks Rolf.

That was along my lines of thinking. I don't know though if the numbers had been bigger whether I would have been thinking along those lines.

I've been told since my original post that Centrelink have authority to deduct rent payments. I did not realise that before. I'll be investigating that.

 

[dwyerfam]

GeoffW

Check the details on my previous post pasted below:

Investment property owners can be registered with Centrelink's Centerpay. You'll need to sign an agreement (25 pages!) with Centrelink and show some sort of proof that you own the rental that the Centrelink customer is renting from you (i.e. a lease or a rate notice etc). The cost will be $0.92 + GST = $1.01 per transaction (so, over 12 mths, 26 times @ $1.01 = $26.26 p.a. - that's not much for peace of mind for all concerned).

Once the system is in place, your rent (less the transaction fee) will be deposited directly into your nominated bank account and you'll get a statement each time this is done. How easy is that? To register, just ring this number 1800 044 063.

Danny D.

 

[geoffw]

Thanks for that Danny, I'll be checking it all out tomorrow

Geoff

 

[cathyb]

Rental Arrears Dept of Housing may be able to help

Geoff

I have used this quite often in the caravan park - NSW - usually works well with low income earners.

You (or PM) should speak to tenant regarding arrears and find out if they are eligible for assistance from NSW Dept of Housing - usually this is given only once every 12 months - could be for bond payments or rental arrears. Determine whether they are willing to get assistance from DoH.

To qualify they have to prove that they have a low income - ie Centrelink payments and zero in the bank and have a landlord that wants to evict them - this is the crucial bit. You must write an eviction letter giving reasons and detailing the amount of arrears and specifying what they must do to avoid eviction. You will also need to state that if the arrears are paid the eviction will not proceed.

Tenant takes letter to Housing who do their due diligence and will usually pay most if not all of the arrears. You may have to enter into an agreement for the tenant to make up some arrears themselves.

Many Centrelink clients are well versed in Dept of Housing processes and eligibility.

Cathy

 

[geoffw]

Cathy,

That sounds really good. A nice cross between losing money myself (early stages just after purchase, and purchase costs hurting hard) and the tenant losing money.

I'm wondering if this is the reason the PM wants to push the case to the tribunal. But itmay be that the tenant does not know there is assistance from DoH either.

He has Crohn's syndrome (not sure of spelling), so further reason not to proceed... however, he's always at the block, looking over the balcony, and I'd like to offer him a free hair cut and beard trim before the next tenant looks at the place...

 

[stirling]

You can set up an increased payment from Centrelink. ie $60 per fortnight for 25 weeks. The extra payments can then be stopped after 25 weeks, when the arrears are paid. For some tenants it is more reliable to get the form, get the tenant to sign and lodge with Centrelink yourself.

Of course the tenant has the option of stopping any centrelink payments at any time, but you should notice this after one week and it is sending a clear message to you "I want to be evicted"

Stirling

 

[geoffw]

Thanks all for the help.

The case went to the tribunal. The tribunal is making him pay $25pw extra until all paid up. But he's made an effort to start to pay extra above that. The problem with DSS payments has been resolved. He has been given DoH forms, but either has not had payments approved, or has not applied

In the meantime, another tenant has gone into arrears over four weeks. Tribunal scheduled.

I understand now why low rent apartments in Queanbeyan are high yield(8%). High risk.

At these low rents ($100 pw) landlords insurance seems barely worth it.

And I'm COMPLETELY HAPPY for the property manager to deal with all of this.

Jakk, am I joining you as a slumlord? I didn't think so when I bought...

 

[handyandy]

HI Geoff

Welcome to 'slum' club

I wish you the best with the "catch up" but in my experience once the tenant starts falling behind it is very hard for them to catch up.

Good luck

 

[geoffw]

HandyAndy,

Thanks for the dubious welcome

I believe Centrelink is going to be doing the deductions. So it will probably happen OK- apparently the problem was caused by a problem with payments to him from Centrelink. It seems all standard procedure- it's just new to me.

Now there's that next tenant who's been taking lessons from the first