When would you let a tenant go?

[EN710]

Apart from seriously damaging property and not paying rent of course...

My tenant is constantly behind with her rent, e.g. if today is 16 Dec, the rent she paid would be until 13 December. It's like playing catch up and it's been like this for the last months. She have not paid water consumption bill either.

There are a couple of times she paid just on the 14th days of rent arrears, so seems like she know how to play by the rule.

If it's you, would you let the tenant go?

Pro of letting tenant go:

1. I can do some minor reno on the property ($5K worth), and as a result
2. Better chance in attracting better tenant and better property value
3. Increase the rent a bit, e.g. by $10-$15 per week. Current rent is $280

Against:

1. Property is in Rutherford and the vacancy there is not so good, so a vacant property might take 3-4 weeks to fill.
2. Rent has been late, but it's coming slowly. So it's not like the tenant is not paying at all. If I terminate, the worry is that she will stop paying rent at all.
3. She maintain the property and I have not got any absurd requests other than smoke alarms and electricity problem in mid year. Gutter clean up and leaking pipe are done from my side.

 

[The Fence]

Keep reminding her that the minute she goes 14 days in arrears you will breach her.

Also inform her that because she has been constantly late paying rent that this will go against her if she has any ideas of paying up "just in time" to avoid termination.

Show her this link (particularly the paragraph named "Frequent Late Payers) which explains, in no uncertain terms, how being constantly late paying rent will indeed go against tenants when being notified of 14 days arrears .

Because at the same time you notify 14 days arrears you can apply to the CTTT for possession as well, bringing forward the time it takes to receive a termination ruling.

 

[EN710]

Thanks The Fence

This time she's late by 15 days , so PM will go and send her a termination notice today. So unless she can catch up with $810 plus arrears for the next days, we will send her a vacation notice.

So worse case scenario, I'd have a vacant property with rent arrears.

To keep it in positive note, it's an opportunity to tidy up to make it more presentable.

PM said expect no less than 3 weeks vacancy and to keep rent less than $300 per week (some property above that has been vacant for more than 3 months ). Should be enough time to do some tidy up.

 

[Scott No Mates]

you mentioned that she hasn't paid the water usage, does the house have the required water saving measures installed ie. aerator taps, low flow showerheads & dual flush toilets? If not, then there is no requirement for the tenant to pay the usage.

If you get the property back, get these installed or checked.

 

[The Fence]

does the house have the required water saving measures installed ie. aerator taps, low flow showerheads & dual flush toilets?

Dual flush toilets are not a requirement.
Only internal taps and shower heads are required to be max 9ltr/min.
http://www.fairtrading.nsw.gov.au/f...ring_a_tenancy/Passing_on_water_charges.page?

 

[EN710]

you mentioned that she hasn't paid the water usage, does the house have the required water saving measures installed ie. aerator taps, low flow showerheads & dual flush toilets? If not, then there is no requirement for the tenant to pay the usage.

If you get the property back, get these installed or checked.

Asked the PM before and she said tenant has always been paying the usage. Not convincing I know. I'm not so fuss about this item and good point, will have the PM check. Rent is more important at the moment

 

[fokas]

Dual flush toilets are not a requirement.
Only internal taps and shower heads are required to be max 9ltr/min.
http://www.fairtrading.nsw.gov.au/f...ring_a_tenancy/Passing_on_water_charges.page?

you mentioned that she hasn't paid the water usage, does the house have the required water saving measures installed ie. aerator taps, low flow showerheads & dual flush toilets? If not, then there is no requirement for the tenant to pay the usage.

If you get the property back, get these installed or checked.

Side note question regarding water: If all the taps aren't water-saving as required and the tenant has been paying the water regardless, can they turn around and ask for the water bills to be refunded if they figure that they internal taps aren't compliant before they are updated?

 

[fokas]

Side note question regarding water: If all the taps aren't water-saving as required and the tenant has been paying the water regardless, can they turn around and ask for the water bills to be refunded if they figure that they internal taps aren't compliant before they are updated?

Office of Fair Trading in NSW says they are indeed!

 

[EN710]

Office of Fair Trading in NSW says they are indeed!

I believe they can. My tenant hasn't paid their latest bill, so they can't ask for this yet even if they want to (they might be able to ask for the previous one).

Quick updates:

• Termination notice issued 2nd Jan, ended at 16 Jan
• Tenant has come up with a payment plan, where they will catch up by the 29 of Jan and will be 1 week in advance by the 19th of Feb. They have made the 1st payment, so now they're 10 days behind.
• The repayment plan is awaiting my approval.
• PM said I can choose to take them to tribunal, but tribunal might favor the tenant since they're doing the right thing (by suggesting a payment plan) despite being frequently behind in rent

I'm contemplating whether or not I should boot them out since it means I can go with renovation. At the same time, getting new tenant might take weeks

I'm considering the following actions:

1. Agree with the repayment plan and be ruthless if they do another default/ late in payment.
2. If they stick to the plan and I want them to leave, I can increase rent (which might lead them to leave the property sooner) or send 3 months notice to vacate if I want to renovate that badly.

What do you think?

 

[perthguy]

[*]If they stick to the plan and I want them to leave, I can increase rent (which might lead them to leave the property sooner) or send 3 months notice to vacate if I want to renovate that badly.
[/LIST]

What do you think?

I once got rid of a bad tenant by increasing the rent by $5 per week. She left, I painted the house and re-listed for $25 per week more... and got it. The new tenants were fantastic and looked after the place better than I would have if I had been living there.

 

[EN710]

I once got rid of a bad tenant by increasing the rent by $5 per week. She left, I painted the house and re-listed for $25 per week more... and got it. The new tenants were fantastic and looked after the place better than I would have if I had been living there.

one vote for rent increase

 

[pully]

your tolerance is admirable and your patience. how much longer has the tenancy to run? only you can decide how long to carry on as you have.

how long will the reno/improvements take? think I would consider all those issues and then make a decision. you did say the tenant has been a slow payer before? think I would favour starting with a new tenant after value adding and an improved rental return.

if cashflow is not important by all means allow the tenant to dictate the terms and go with the flow. just my opinion. good luck to you and the next landlord that inherits.

 

[EN710]

your tolerance is admirable and your patience. how much longer has the tenancy to run? only you can decide how long to carry on as you have.

Currently on periodic, have asked them to renew rent and haven't got any update, so periodic it is.
I inherited the tenant from previous owner, running 10 months now.

how long will the reno/improvements take? think I would consider all those issues and then make a decision. you did say the tenant has been a slow payer before? think I would favour starting with a new tenant after value adding and an improved rental return.

Tenant has been slow, but only started to fall behind in October 2013 and has been behind since then.

if cashflow is not important by all means allow the tenant to dictate the terms and go with the flow.

Cashflow is important and especially in 1-2 months, as I'm settling into the new PPOR.

just my opinion. good luck to you and the next landlord that inherits.

I told my PM to accept the payment plan, and indicate to tenant in writing that I don't intend to continue with their tenancy if they don't follow the plan and/or another arrears happen.

I haven't got much luck with the timing this time. I have too many things happening at the same time. Preferred not to have vacancy on Xmas, going for overseas holiday within a week, and moving house within 1 month ... first world problem I know.

I will probably tell PM to increase rent once I'm back. Right now get this repayment plan sorted first.

 

[crest133]

Hi All, I'm back after a break away.

There are ways to defeat the very annoying serial offender with arrears.

In the case of repeated arrears albeit under 14 days each time, I always requested a Tribunal hearing asking for orders
"to end the tenancy because of serious and persistent arrears, and
also asked for orders that the tenant pay rent on time and in breach of that Tribunal order I be allowed to return to the Tribunal immediately (without serving another termination notice) to have the Tenancy terminated for a serious breach of a Tribunal order.
The second order was requested just in case the Tribunal ruled against me that the arrears were only persistent not serious.

Usually "sliders" keep on sliding.

Good luck
cheers
crest133

 

[EN710]

Hi All, I'm back after a break away.

There are ways to defeat the very annoying serial offender with arrears.

In the case of repeated arrears albeit under 14 days each time, I always requested a Tribunal hearing asking for orders
"to end the tenancy because of serious and persistent arrears, and
also asked for orders that the tenant pay rent on time and in breach of that Tribunal order I be allowed to return to the Tribunal immediately (without serving another termination notice) to have the Tenancy terminated for a serious breach of a Tribunal order.
The second order was requested just in case the Tribunal ruled against me that the arrears were only persistent not serious.

Usually "sliders" keep on sliding.

Good luck
cheers
crest133

Awesome crest133 - copying this into my "what to say" repository

 

[Jolly123]

I'm in the same boat!

Hi En710,
Your thread is excellent for my case too. I am in similar situation, or worse maybe. The tenant has been in arrears sonce 08 Dec 13. Just got phone call today from PM that she will bring tenant to tribunal. PM said that I could get some compensation from LL insurance. Do you hv LL insurance?
Cheers,
Jo

 

[EN710]

Hi Jolly123

Yes, I do have LL insurance with EBM.
Tenant has started paying slowly to catch up (they're on repayment plan), so I have not consider any claim to the insurance. All in all, I prefer a fully paid rent (even if the property is vacant afterwards) rather than an insurance claim and all the hassles...

 

[pully]

good luck and hope all goes well. enjoy your holiday and new home.

 

[EN710]

good luck and hope all goes well. enjoy your holiday and new home.

Thank you Pully