All Topics / Help Needed! / Advice – get rid of non paying tenant

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Hi all, I am currently looking at all options, but would appreciate your comments on what you would do??

    I have a tenant who is not paying rent (4 weeks in arrears). Has been in my property for 3 years and it has been a roller coaster ride, paying – not paying …., he is pretty smart, and will use what it takes to stay in my property.

    Just want him out with minimal headaches.

    thanks. M[biggrin]

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Is the property in Sydney?

    Would you like me to go around there and have a word to him for you?

    We can chat about the Godfather movies!!!

    :)))

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Rob, always luv your sense of humour.

    But would like to know what is the most practical way to deal with this. I am sure many people with IPs have dealt with same, it really is causing me grief. Thanks

    [biggrin]

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Sorry, I know it is a serious matter. I use property managers who deal with this. They tell me there is a specified time period before you can serve a properly formatted eviction notice and then a reasonable time period before you can call on the sheriffs to have them removed.

    If there is damage etc. once the tenant is out, then you will have to book another date with the Residential Tenancies Tribunal especially if he disputes the bond.

    You might also need to obtain an order for back rent.

    I think the best thing to do is talk to a local property manager for the right advice and process.

    What State are you in?

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Marisa,

    We are going through the exact same thing with two of our tenants – except our tenants don’t live in the units, but work out of them.

    They have both never paid us rent since we bought the property, other unit lessee’s are flabbergasted….anyway.

    This Thursday, after 3 notices over a period of 6 weeks, they shall be ‘moved on’ with a bobcat and truck outfit…we shall be using the term ‘abandoned’.

    I just read Rob’s attachment for the Tenants Union of Victoria and was horrified at what advice they have outlined on how to string out hapless ressy Landlords…what a legal farce…if you go down that route good luck – you’ll be there in 6 months with not a jot in rent.

    All this ‘legal’ advice is outrageous…dealing with people who do not respect any agreement or written request and take no responsibility whatsoever, yet expect every right to be extended.

    In my book, rights and responsibilities go hand in hand.

    I feel sorry for anyone going through this with residential tenants who take no responsibilities.

    I do not have a solution for you, except don’t buy these types of props.

    Do you know any big Maori tow truck drivers ??

    Cheers,

    Dazzling

    “No point having a cake if you can’t eat it.”

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    Hi Marisa

    In WA try http://www.landlordsadvisory.com.au for advice; you can always begin the legal process yourself as well if you feel the need.

    I always use PM’s for my IP’s saves the headache (most times)have you been keeping records of notices etc to him for those occasions when he has not paid, has he given a reason for not paying this time? You need to establish the trend..

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Marisa- bugger that that’s happened :( I feel for ya.

    working with humans is always a risk- what can one do? property is a risk. I imagine pretty much every landlord here would have someone who was a problem tenant at some stage (c’mon- tell the truth, ‘lordies!)

    Marisa, I like to insist that the tenant has their rent auto-paid into my account (I auto-pay my rent as a tenant or i’d always forget to pay!) Having said that, the tenant may not choose to pay this way- he obviously hasn’t. I guess you’re just gonna have to follow the letter of the law, or otherwise, it is gonna cost you more money.

    Having a PM or not… well, I have PM’s- but evewn the best PM can only cajole/caress/plead- whatever- the money is still in the tenant’s hands, and it’s hard to get blood out of a stone.

    In terms of mitigating risk, I try to work out what my situation would be if I had no tenant payments… could I still pay my mortgage from wages? If the answer is no, then it may be trouble, because one can never control tenants or ensure one gets rent- one only *hopes* to.

    Remember the French Revolution? People got a bit annoyed at private property… hehe- could happen to us and there could be a bunch of “refuseniks” not wanting to pay our rents, and hitting us on the head with croissants when we approach them. Mitigate, mitigate… and keep your job!

    Sorry Marisa- wish someone could help you get the blood out of that stone tenant, but really, these things can be tough.

    kay henry

    Profile photo of shaztazshaztaz
    Member
    @shaztaz
    Join Date: 2004
    Post Count: 113

    Hi Marisa,

    I have a friend (no, not me[biggrin]) who had a tenant who was always behind in rent.

    After months and months of following all legal channels she was completely frustrated.

    She visited the property once again to ask for rent but of course the usual excuses were offered.

    As she left the property (driving a borrowed ute), she ‘accidently’ ran over the water metre. A plumber arrived quickly to plug the leak[biggrin], but she had to explain to the tenant that she couldn’t afford the cost of a new water metre to have the water supply reconnected [worried]
    the tenant moved out in 2 days.

    Of course I wouldn’t suggest for a moment that you should do such a thing on purpose, but in this case it was a ‘fortunate accident’
    Regards,

    Sharon

    Profile photo of WylieWylie
    Member
    @wylie
    Join Date: 2004
    Post Count: 346

    Marissa,

    We recently had a similar situation with an IP in Brisbane. Nutty tenants pulling all sorts of tricks. We manage our IPs ourselves.

    In Qld Residential Tenancies Authority (RTA) website has all the forms to print off and issue. We followed the RTA procedures. Make sure you give the proper notice and keep copies of everything.

    We gave them notice several times, and they kept paying up. Each time they didn’t pay we gave another notice. We really wanted them out (as did the neighbours). Finally, I arranged for the local constabulary to come around with me the morning after the midnight deadline passed because one of them was fairly abusive. I didn’t need to take this course, as they did move out.

    I needed a good lie down and a stiff drink afterwards though.

    The thing is, they presented well at the beginning. We generally rent to people on gut feeling and in 25 years have only got it wrong a couple of times.

    This time we lost four weeks rent and luckily our insurance covered repainting where they had done some damage to a couple of the walls and a couple of other minor things. Luckily walls were VJ boards, goodness knows the damage if they had been plaster.

    My suggestion is don’t be put off by people saying don’t get into this type of property. We have only had residential IPs and one bad experience shouldn’t put you off.

    I’d say get the forms to the tenants, hopefully your bond should cover some of the loss. Get them out, clean the place up (if needed) and find the next tenant.

    Look on the bright side, you don’t pay tax on the lost rent.

    Good luck.

    Wylie

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Hello all, and thanks for your support and helpful comments. Had a good laugh…

    Just to give you an update… unfortunately my tenant is still in my house, my property manager has given him 7 days notice and currently going through the appropriate legal process.

    Today he paid 2 weeks rent and is currently 3 weeks in arrears. He is now asking if his mother can move in and would like a 1 year lease????? What the….

    I will be inspecting the property this Friday and am advised that he will be there to meet with me.

    I do not want to see him but still want to view my property. What do you think about this?

    Profile photo of westinvestwestinvest
    Member
    @westinvest
    Join Date: 2005
    Post Count: 88

    In W.A
    We have been where you are now, but there is light if you follow dew process Legal process.
    Serve with Frailer to pay rent.
    After 14 days serve with Eviction notice.
    Get a copy of:
    The Landlords Handbook
    The Key to Successful Property Management
    Department of Consumer and Employment Protection
    http://www.docep.wa.gov.au
    [medieval]

    Profile photo of Fast LaneFast Lane
    Member
    @fast-lane
    Join Date: 2004
    Post Count: 527

    You should go, it will show you’re not intimidated. You should really make him feel uncomfortable. If you’re worried take someone with you and act like a real bitch.

    I’d love to help you out but I’m in court on Friday for making threats to kill…[satan]

    As for his mother, she probably wants to move in so she can help with the rent, or she could be like her son, an absolute scumbag. Get rid of these freeloaders, if they end up on the street, at least it’s not at your expense.

    Good Luck…G7

    Profile photo of annemlanneml
    Participant
    @anneml
    Join Date: 2003
    Post Count: 54

    Hi Marisa,

    I’d stick with the legal process. Your tenant is still in breach of his agreement if he is three weeks in arrears (in NSW, Vic and Qld). You may not get all your money but will lose less in the long run the sooner he is out. If you keep him on, the worry and uncertainty will be ongoing in addition to greater potential financial loss. If you allow his mother to move in under these conditions then you have set a standard that is lower than you want.

    Have just been through a similar experience and the one thing I would do differently is start the legal process sooner than I did. My tenants had no intention of doing anything different. From the moment they decided to stop paying rent I was going to lose money but I could hve reduced the amount I lost by a few weeks rent if I had acted immediately on the legal procedure. I could have listened sympathetically and handed them their notice to vacate at the same time. This was a property I ended up having to manage myself temporarily because of inappropriate acivities by PM (including letting to these people in the first place) in a town where PMs worth their 10% fees were like hens teeth. (There’s now a new gun in town, former local who’s prepared to work hard to build his business so no more self managing!).

    I’m biased because of above, but move him on, move him on.

    As a back up, the water meter solution or something like it sounds like a great option.

    I must admit the lessons have been invaluable. In my experience tenants like this are rare but knowing how to deal with them is a great skill to have.

    Good luck.

    Anne.

    Profile photo of kiwipropertykiwiproperty
    Member
    @kiwiproperty
    Join Date: 2005
    Post Count: 24

    Yep I’d have to agree with Anne. You need to start the legal process as soon as you can rather that waiting and hoping it will get better – it won’t.

    The beauty of having a propety manager is that they do all of this for you, and they vet the tenants which is why we never manage our own properties.

    But if you’ve chosen to self manage it’s a much more difficult process to navigate. Contact the relevant tenancy tribunal as they should be able to give you all the information you need. You may need to seek legal advise from a good lawyer if things get nasty.

    Depending on the location and condition of your property you shouldn’t have too much trouble finding a new tenant who will pay their rent on time and your stress levels will be reduced.

    Best of luck.

    Sigrid de Castella & Antony Anderson

    http://www.kiwiproperty.biz
    New book “The Guide to New Zealand Property Investing – Australian Edition”
    Available at our web site along with other NZ Resources for Australian Investors

Viewing 15 posts - 1 through 15 (of 15 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.