So I took over my first rental property with an existing tenant. The vendor raved about the tenant, “Could have a better tenant” they said. It was only after settlement when I was expecting the first rental payment was I made aware that the tenant was actually in arrears. Such a wonderful tenant I hear them say.
My plan to resolve the issue: Have the tenant setup direct transfer a day after pay day. Let the 4 fours of outstanding rent be wiped as a means of starting off on the right foot. Any other ideas?
Then I find out that she has not had a rental increase in 3 years. So I was planning of increasing the rent in 4 months. Just don’t know how to tackle this. My plan is to make a few improvements around the unit which are required and will add value in the future, and justify the rent increase with this improvements. Or do I just want for the lease to be up and find a new tenant. Question: when the lease is up, what is the easies way to get the existing tenant out?
Big long I know……
Ask yourself:
Is this a charity or a business?
Then you will know the answer.
If you want the tenant out ASAP then instruct the PM to do so. They will know what can and can’t be done and your best course of action.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon is right. If they are in breach of the lease, your PM can start proceedings to get them out NOW. In Qld they only need to be 7 days overdue to be in breach and for the appropriate paperwork to start.
If they do pay and you want to get them out at the end of the lease you (or your PM if you are using one) need to give them the appropriate notice that the lease will not be renewed. You can then get in and do the improvements and charge more for the next tenant.
If they stay and do pay rent, I’d be inclined to do any work they will allow you (remember they are on cheap rent) so that the work is done with a tenant inplace. You will save some time and money doing this rather than waiting until it is empty.
Good luck, Wylie.
thanks everyone. Had a chat last night with the tenant and we have setup a plan to ensure the rent is paid on time. DIRECT DEBT!!
The tenant is happy to allow us to improve on the unit, so full steam ahead. Just little things around the unit will assist us is getting higher rent at the end of the year.
So lessons learnt:
1. Ask for payment history from PM prior to purchase
2. Discuss with the tenant prior to settlement and agree and that the rent will be paid on a certain day.Good result. Beats having to evict to tenant as I had to do.
I did threaten my PM to take the management of my properties elsewhere, forget about the rent owing and start afresh with a new agent. PM covered my court costs, and waived the new lease fee for a new tenant, + rents were increased 10%. Apparently my ongoing business is important to them.For some RE’s, Property Management is easy money. Make them work for it when it comes to the crunch. If they don’t, take YOUR business elsewhere.
Mal
Getting out of your comfort zone, can help you become comfortable
Jeremy,
There must also be a “Lesson Learnt” re Due Dilligence surely!
If the vendor said that this person is such a wonderful tenant then he needs to be able to demonstrate that fact.
What questions could you have asked the vendor that would have shown you how good the tenant is?
Why did you not ask this, and other questions?
Did this deal look like “Easy Money”?Harley
If the tenant is such a good tenant why did this person want to sell the you the property with the lease ?
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