All Topics / Help Needed! / Tenant wont pay rent – how to evict??
Hi All,
I am hoping for a few handy hints here on how to evict. I have a near new 1 bed apt in Nth Melb which has had good tenants in the first few years but now have an ordinary one.
The rent is now 21 days overdue and a letter went to them at the 14 day mark saying to pay up or be evicted after 28 days. The problem is the tenant no longer works at original employer, has changed mobiles and does not have a landline. The managing agent went there to deliver the letter and knows the tenant has not done a runner as all his stuff is still there.
What is the next stage at 28 days and is it s fairly straight forward process to get them out via VTAC? All tips are gladly received as it is proving very annoying (especially when you know the tenant has a 2005 Mazda!!).
Look forward to any replies.
Cheers
DannyYour managing agent should be handling all of this for you. Give them a call for the next step they are taking.
Good luck
Simon Macks
Residential and Commercial Finance Broker
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Cheers Simon,
I have spoken to my agent about it and hopefully it all gets resolved. My question is have you or anyone else out there had any experience going through VCAT to get a tenant out and was it fairly stragightforward?
Regards
DannyHi Danny,
Evicting a tenant is a long and drawn out experience and also becomes costly especially when he has stayed longer than what is covered by using the bond money to cover non payment of rent
This is where you find out tenants have more rights than a Landlord!
Get a copy of the tenancy act and ride the PM to find out where he is at getting this guy out of your place. When he says he has until thurs ring him friday to find the outcome. Don’t just sit back be proactive and follow up..
Good luck
Jenny1
Once the tenant was 14 days in arrears your pm should have served the 14 day notice and applied to VCAT. once the 14 day notice is up you should have had a VCAT hearing scheduled in the following week or 2. provided the tenant is still in arrears on the day of the hearing you should be given a possession order. from there if the tenant is still in the property you should immediatly purchase a Warrant of Possession. This is served by the police/sherrif and the locks changed while the police are at the property. If your property manager has a good relationship with the local police you should have the tenants out within the week. once you have possession of the property your PM should then apply to VCAT for the bond for rent owing, damage, cleaning and all related costs. Another thing to remember if you have a good landlord insurance policy you should be able to claim all rent owing & damage costs.
VCAT is usually all fine as long as your PM has done all of the paperwork correctly and is organised.
If there is a next time plese do not wait to serve notice. As soon as the tenant is 14 days in arrears jump on it and the process will go a lot quicker.
I have experienced evicting tenants in NSW and QLD. The process is similar. Like others have said, let the agent manage it. Have them explain the steps they need to go through and more importantly WHEN they execute these steps.
The best thing you can do is to contact the agent at each step to confirm it was done. If all goes to schedule you should only be out by 4-6 weeks rent. So long as there is no damage you may not need to claim your insurance.
Note if the tenant turns up to the hearing, you will more than likely have to enter an arrangement with them to pay the arrears. In this case, you need to be sure your agent is following it week by week until the arrears is paid in full.
I manage all my propertys myself because the agent always seems to react very slowly.The best advise I can give you is ring cosumer affairs in Victoria.Ask them to send you information on your rights as a land lord (Landlord Pack)and explain to them your situation.They are always very helpful.This way you will understand how the system work.Dont wait for the agent to solve your problem.Educate yourself became in control of your assets.You can then tell the agent how you would like to see your property managed.[thumbsupanim]
Thought I would tell my story of a tennant who stopped paying rent took some fairly extreme measures but they paid off in the end. We could’nt get in touch with the tennant also tried his work place but he had left so the only number we had was his defacto’s mothers. we called her she was very understanding but did not know where they were either just thought they hed split up. Next step was grab the ute load all their stuff up and take it to her mothers, tennant evicted. The place was a mess dirty nappies all over the floor drugs and needles in the garage but after a good clean and lock change we had the place back. Never heard from them again and onls lost about $200.00 in the end. I realise you can’t always take these steps but it worked in this case. Good luck
Dave
I am hoping for a few handy hints here on how to evict.OK, here’s my two handy hints…..that most people always ignore ;
1. Never hitch your wealth aspirations to people’s private lives – by definition….you cannot control that whole machine of emotional nonsense and non-businesslike fluff that the tenancy tribunals always put before your business targets.
2. If you are exposed to the RTA – don’t be.How’s that for a different frame of reference…..for most people it’s so far removed from their knowledge base and property experiences it simply doesn’t compute.
Of course, none of the above directly helps in your specific circumstances at this moment in time….but it may help you later on when the bigger picture emerges.
Thanks for all the posts guys. Very helpful indeed.
I particularly like callendars post as it laid it out step by step. My tenant just paid at the 23 day mark but I feel this may happen again as rent is due again next week and I am bracing myself!
Regards to Nick’s post, does anyone know if you manage a prop yourself, does that mean you cannot claim landlord insurance for rent owing?
Also, did not quite undertsand Dazzling’s post. Went over my head Dazzling. Can you kindly elaborate on what linking wealth to personal lives means and also what is the RTA (pardon my ignorance).
Cheers
DannyGlad to see that your tenant has paid the rent. Make sure your agent does not cancell the hearing, ensure that they seek an adjournment. this is valid for 3 months so if the tenant falls behind in the next 3 months you do not have to serve any notices you just have to fax a request to VCAT to have the matter relister. this saves a lot of time and you will normally have a hearing within 2 weeks.
You can manage the property yourself and can download the forms from the consumer affairs website
http://www.consumer.vic.gov.auSome insurance policies will exclude self managed properties so you will need to check (terri scheer will not insure self managed).
If you ever need any other questions answered i am more than happy to assist as have been a PM for 9 years (Country Vic)so have some knowledge that may be of assistance. You need to make sure that your PM has expierience & knowldge of the tenancy act & VCAT as they should be doing all the hard work for you and be keeping you up to date. look for an REIV accredited PM as they will have had to have min 3 years exp, and have completed numerous training/courses to get accrediation.
For some good information on evictions etc in Victoria, plese look at the Victoria Tenants Union:
http://www.tuv.org.auTerryw
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Some policies don’t cover loss of rent if you manage it yourself but others do. Be aware though that if you manage it yourself and it goes to court then you have to face the tenant in court, or even harder, you will most likely be sitting in the same waiting room as the tenant. Are you able to handle this situation?
I recently took a tenant to court and at the first hearing she was talking to me prior with she promises of how she was going to pay back the debt etc, in otherwords she wanted me to cancel the hearing and give them a chance. Can you stay firm and say no. Then when we got to the hearing the magistrate was pushing for a payment plan based on what the tenant was saying about how she could pay. Can you stay firm in the face of a magistrate that this is not what you want. Then when they were given notice to move and didn’t, then we had to get an order to move them out etc etc. Once out and damaged assessed, then had to book another hearing to get an order for the damage to be paid. Do you have the time to go through all the hearings or could you be doing better things?
I ask this, because I’ve done it and it wasn’t hard although it was awkward at times especially when the tenant is begging for another chance outside the courtroom with other peple all watching saying how I was going to make her kids homeless etc, the guilt trip is not nice. Anyone can do it though, the paperwork and things weren’t hard, dealing with the people is a bit harder but even so, still not too diffiucult. But what I discovered was that I had better things I could have been doing with that time. It was time that you either have to leave work for, or time that your not searching for other investments or time not spent with the family.
So I’ve done it and I daresay you could, the question is, do you really want to? I’ve learnt that I don’t.
PK
Hi Danny
It’s a bit late now but there are alternatives to just using the big stick approach. ie good management
eg inexpensive incentives
eg employment and contact details being kept up to date
eg Landlord insurance
Maybe they would like to pay a little extra each week now so if they get in trouble again it will be covered for a while?
Hope this helps
Cheers
[exhappy]Hi Danny
Not sure of the process in Vic but have had a similar experience in Qld – you need to get all the info from Consumer affairs and these people have extremely good information about the processes and time frames to get your errant tenant out of the premises (similar to Nick95’s comment) – As you are not manageing the property yourself get the info from the website and say on the property managers back -eg “the rent is 21days overdue have you filed ……” etc etc and get the process “right” in your mind and stay on the PM’s case – Good Luck
Also be aware that some insurance companies won’t pay out if the PM has not been doing their job. Some PMs will use the I won’t particularly worry about this as insurance will cover the default/
When push comes to shove insurance companies like to see their interests are also being looked after by a pro-active PM.
Derek
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