I have a tenant who is 4 wks behind in rent. Has been given two weeks termination notice which expires tomorrow. The property manager tells me that he did not get the landlords insurence thinking that I was going to arrange it. Also he’ll see the tenant tomorrow to let me know if he’s leaving or not. What should be my next step. How much does the tribunal cost and what time frame can be expected. Its a new house renting for 390/wk
lots of reads but no answers! There are a great deal of experts and RE Agents on this site and I’m sure someone or anyone can give some ideas. I got the IP and have run into problems, now what?
Hi Pushpa,
I am sorry I am not a real estate/investing expert, so my advise is probably not what you’re looking for. However, I feel your frustration and anxiety at your situation. I should think that your property manager should be able to advise you of your next move. Failing that, you could possibly contact the government dept in your state that regulates landlords and tenants.
Hope this helps a little, just remember – you are probably about to learn some valuable lessons.
Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Hi,
You need to establish whether the tenant didn’t pay because s/he couldn’t, or because they did not want to.
If it’s the former and you want to retain the tenant, work with them through the financial difficulties and arrange a payment plan to catch up the arreas.
It it is the latter, organise for eviction throuhg the proper channels and seek for the bond to be claimed to offset rental arrears.
Finally, think about sacking your rental maager who, based on your post, seems to be inept both in helping you manage your investment and in staying on the tenant’s back chasing up rent owing.
I’d be asking the rental manager to share part of the loss, but I’d imagine you have little chance of having that occur.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Pushpa, Yes, as the previous post , your property manager is the one to advise you on what is happening. Contact them as you said expiry of the two weeks notice is tomorrow. The agent will have to set up the Tribunal hearing, takes 2 weeks in this area, costs you $28 to apply for the hearing, and the cost of the property manager per hour from when they leave the office. Also get a copy of The Rental Guide from the agency and some of your questions may be answered on page 20. If the ppty mgr had taken out your landlord insurance you would have received the receipted document together with your monthly rental statement showing the amount deducted as having been paid. We initially did our own insurance but now they are renewed through the ppty managers. About $200 per year and well worth it. Good luck.
AnnaHi Pushpa,
You can ask your agent what he plans to do next and how long it will take.
From my recent experience:
1. 2 weeks for eviction. The agent then applied to get the bond. It took over 2 weeks to get it.
2. Landlord insurance didn’t pay because the last lease was ended a few months ago. The tenant stayed on a monthly basis. The insurer didn’t even pay for the cost incured from the mess the tenant left behind.
3. The agent looked after everything. He even applied for a 2nd hearing to get some money for the unpaid rent & cleaning up costs from the tenant. I paid $30 for the tribunal hearing, the left over costs of cleaning up & 8 week lost rents (untenanted).
I hope it will work out better for you.
Best of luck
Regards
Huey
Huey, you said the insce co wouldn’t pay because the tenant was on a continuing lease?
So, does that mean that we are only covered if we renew the lease? Lots of landlords would be caught out here – they would assume that they had a good tenant if they were still there after the lease ran out. Better check our policies.
Would u mind sharing the name of that insce company?Hi Guys,
I am interested to know if the “loophole” in the insurance policy about the lease is the norm with insurance companies. Has anyone else had a similar experience?
As many tennants stay on a month by month basis after the initial 12 month lease, I think this is an important issue.Sue [
]“Be careful not to step on the flowers when you’re reaching for the stars”
Thanks a lot for your replies, Sue, Anna, Huey, Hilary and Steve McKnight(I feel honoured for your personal attention). I already feel better now. I’ll talk to the property manager and by the looks, will have to go through the Tribunal bit. I know now that I’m looking at 4 to 6 weeks,at least. Thanks once again.
Hi Hilary,
I rang St George/CGU and explain the problem to them and they told me so. I got caught out and still wonder if landlord insurance is any good! It seems that we have to renew the lease at the end everytime. Let me know if your insurance company is better.
Cheers
Huey
There should be no leeway when a tenant is in arrears
with the rent. Your bank manager is not going to
giv eyou extra time to pay your mortgage. If a
tenant is seven days in arrears the Property Manager
should send them a notice that the rent is late. If
the tenant is 14 days in arrears an eviction order
should be lodged with VCAT immediately so that the
tenant realises that you mean business. The cost of
the VCAT application is $31 and there could be fees
involved with your property manager depending on the
arrangement you have with him.Pushpa after to listening to Steve’s fast track tape here’s how i would handle your situation.
1.Cut you losses pay the tennant $500.00 to move out but you keep the bond,let him become someone elses problem.
2.Sack your property manager.
3.Learn the lesson you have been given find a property manager who does a proper due diligence checks and who will manage the property properly. (Steve’s buyer beware pack is also worth looking at in regards to finding a rental manager and due diligence)Regards Beanie.I’m with Steve on this one. Find out first why the tenant isn’t paying, a heavy handed property manager can do a lot of damage. Try to make it a win win situation. I think a tenant who is paying $395 a week has to be on a reasonable sort of income so there must be more to this situation. How long has the tenant been there and was the tenant there before you bought the property?
C2
“Is it true the more you owe the more you grow until the bank steps in?”
]
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