What are you experiences?
Have you used a debt collector to get your unpaid rent?
Does placing the tenant on TICA also go on CRA?
haven’t done it yet but am about to go down that road.
Going to court Monday for eviction and unpaid rent. Sure the tenant can say go to hell for it but why not use a debt collector and have it listed on the CRA account of the person involved?
Any thoughts or advice for me?
Cheers
ToniI say go for it, yes I have used debt collectors before with success. Sometimes it takes a while, but usually tenants eventually find they have to take responsibility for their actions and pay up if they want to apply for other rental props. You’ve got nothing to lose anyway.
They will do that if they cannot rent because they have been noted on TICA wont they?
But i am thinking to get a debt collector so the money is paid sooner. Also I have had no end of unimaginable problems with this tenant.
ToniHi Toni
I am a debt collector (Commercial agent). There is little doubt that (depending on the individual) using a commercial agent will get your money back more quickly because that’s what we do. Quite often the involvement of a third party is enough motivation to get them to pay. The biggest problem is keeping track of them. If they move sometimes they are not easy to find.
You should know however that unless you have a court judgment (not a tribunal order but an order converted to a civil judgment for the money at court) then there is no effect on their CRA. Collections agencies cannot “list” a bad debt.
TICA does not as far as I am aware list them on CRA but does effect them as a tenant if they try and rent through an affiliated agent. Not sure if you can list someone on TICA though unless you are a member agent and have it on the original tenacy agreement.
Good luck anyway
markk
Happy Hunting
http://www.kentscollections.comHi Toni,
Can you list someone on CRA for non-payment? ie Dishonor without a court order?I thought the likes of Telstra, etc did that all the time. Its a small smudge on a clients record without the need of a court order.
Mat
thanks for your replies
Tribunal today……no help, only for the tenant.
So will just have to wait for them to slip up now and then they are gone and my PM has said we will list on TICA and I will then get a debt collector to get the unpaid monies.
cheers for your advice
ToniSo Toni, given your recent experience and the glaring example of your lack of ‘control’ that you actually have as a Registered Proprietor of a residential property in a Lease situation, what is your opinion of the ‘whole show’ as a way of making money…both growth and income ??
Any suggestions for those contemplating doing the same ??
What do you think of the Laws contained within the RTA and how they are applied in a real life situation….were you impressed or satisfied ??
Sadly I have had a few bad tenants and have found the laws are only effective if you PM is effective.
The PM needs to spot the first violation and act on it immediately. No messing around. As tenants always get a second chance once they front up to the tribunal you need to factor this in.
One bad tenant went to the tribunal 3 times and each time was slipping a little more in arrears. This was a costly lesson.
Another bad tenant was put on notice as soon as the law allowed and slippage was not allowed, consequently having a sherif evict her. End result was a few hundred dollars short.
Is this an effective investment vehicle? To each’s own. I think my yields are better than short term trading!
Mat
So Toni, given your recent experience and the glaring example of your lack of ‘control’ that you actually have as a Registered Proprietor of a residential property in a Lease situation, what is your opinion of the ‘whole show’ as a way of making money…both growth and income ??
Lack of ANY input whatsoever as to our situation is more to the point!
The tenant is a looney and is now 7 weeks behind. Tribunal yesterday states she can pay the back rent off at $25 extra a week and she does not need to start paying until next week!!!!!!
go figure.When i bought this place is was purely for the land. Just about 1700sqm, to develop at a later stage.
We have our own little rule that every property we have bought we have make sure of the numbers. i.e. that we are able to still pay in the event of a tenant like this.
I will get all the money from her eventually and if not? I will put it down to experience.As a way of making money? I am a kinda buy & hold sorta gal. This property was in the country, I wont do that again. Too far away to really keep on top of.
I have changed a bit over the last couple of years and now only buy for growth and will continue to do so. After this experience, I will propbably just stick to Sydney.Any suggestions for those contemplating doing the same ??
I am with Mat, to each his own. Would I do it again? Yep, already have.
What do you think of the Laws contained within the RTA and how they are applied in a real life situation….were you impressed or satisfied ??
I think they SUCK! and that we should have some voice.
How would the Judge? feel if the tenant was in his own IP?
So from that, I think you can tell I am extremely dissatisfied with the service rcvd!Cheers
ToniAm i worried? nah. I will get rid of her eventually.
Mat
I totally agree with you. The PM does need to be on top of it. If he had, I would not be going through this now.
I think mine cringes every time he hears my name at the moment due to the fact I am almost sitting on top of him over this.
At the tribunal, the PM was left waiting for an hour while they heard the tenants sob story.
Ah wellcheers
ToniAt the tribunal, the PM was left waiting for an hour while they heard the tenants sob story.
Ah wellI’ve heard PM’s usually charge $ 85 to 90 per hour to represent you. I don’t suppose you’ve seen the bill yet for him / her to stand there waiting. I also don’t suppose the tenant is going to chip in for that expense either.
Involving and tying your wealth building strategy to some strangers private life, and all of the usual trials and tribulations that accompanies it makes no sense to us. We found the things we were interested in (growth / cashflow) had absolutely zero in common with the tenant’s pedantic little domestic wishlist.
We also found the laws heavily weighted against the Owner, you are forced to take a backseat…your objectives as Owner are definitely not at the top of the priority list.
Anyway…good luck with your overall strategy.
Hi ,
Yes , the dreaded Tribunals always seem to side with the tennants’ sob stories … Govt would probably shut the Tribunals down if they started throwing tennants out in the street . A large part of this stress is avoided by having Landlord Insurance in the first place but most important , making sure PM is on the case straight away (!) as per mathewc73’s good advice . At least then Landlord can get most of lost rents / damages / tribunal costs back but only when the tennant is finally out ….and actually getting them out is where you need a good PM hey .
Cheers,
MMLV
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