my tenant just declared bankruptcy,therefore the 1 year lease has become void …
apart from checking if landflord insurance pays anything,what do i need to be aware of ???
seems like could be tricky since they cant be made liable for anything….
as far as Iam concerned they are ok re moving out
thanks
Is there an administrator appointed? If there is, you may be lucky that the aministrator takes on the responsibility for the payment of rent until they vacate/another tenant is found (this will work for commercial, don't know how you will fare on a resi).
Hi There
Sticky situation but I guess it all depends on the attitudes of the tenants.
Are they going to move out asap? Do you they owe you backpay in rent?
If they are decent people they will move out asap and you should be able to find tenants in the current Australian rental market asap.
If they are not going to move out, then I guess you have to go through the normal eviction proceedings ie. issue eviction notice and then proceed with registering with the couts….. In W.A. all of the forms and what you have to do can be found at
http://www.docep.wa.gov.au/default_cp.asp?id=cp/dev_publications/forms&menu=menu_cp
Even if you go through insurance, they still expect you to minimise your loss which means still following through with the correct procedures. I am not sure of the procedures in other states, you will need to look this up.
Although they may not be in a good situation, you are an investor and not a charity so make sure you look after yourself.
Hi,
Well unfortunately you may have to treat this a learning experince. You have the bond still I'm assuming, but even if there is an administrator it would be safe to say that you would be at the bottom of the list. This is an unfortunate downside to property investing, check your LLI policy . The policy my firm provides would cover you in this even should you have a tribunal order. As to the moving out part you can only evict the tenant if you have an order saying so.Question – Did they go bankrupt owing rent or where they still in a positive rental situation when they where declared bankrupt.
If I can be of any other help let me know
thanks everyone, just got informed about the situation… might work out all right , the tenant seems to be pretty decent and just got into a terrible situation …no rent owing yet , still got the bond , property is advertised 'for rent' and tenant is going to move out next week
since there is no money owing yet I havent heard anything about an administrator,will see
I ll check out the link, always good to know what to do …agree however bad`the story is, I ll not make it more difficult for the tenant, just for the sake of doing so but its a business not a charity
re tribunal order , the agent said the tribunal mentioned its pretty hopeless to chase money and try to insist on the one year lease until I get a new tenant but I assume I could get an order if my LLI requests one ,will check as well
cheers alex
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