i own a rental property in wa and i have been living overseas for a year so i have had my property in the hands of an agent. i had given instructions that if my tenants get behind by two weeks let me know so we can start proceedings to get them out or have them pay up. i got my statement for august and saw that i did not receive any money that month so i contacted my agent and said whats going on? she told me that it was just a glitch in the system and the tenant is only $120 behind, so i said not a problem just monitor the tenant to see if she falls behind any further and just put the money owed in next months statement. so then the next months statement came and still no money so i rang the agent and asked whats happening and she said i dont know whats happened but the computer was wrong and she is actually 8 weeks behind in her rent. she gave a 7 day notice to vacate and the tenant still has not moved out so now we have to wait for a court date which i think we wont be able to get until the 1st of nov. the agent assures me that the tenant will pay because she will take the tenant to court but i have been through this before and the tenant just does not give a forwarding address and with no address the court order can not be summoned. i do have insurance but they take the bond in rent first then will pay the rest of the money owing how ever they do not pay the first 8 weeks because there was never a breech sent out until the tenant was 8 weeks behind. i have spoken to another agent and he told me that my property manager is liable because they didnt send out the breech notice and to contact reba which i will do taday. by the time we get it taken to court the tenant will owe 12 weeks rent which will be $3840. my question is has anybody been through a similar situation?
Hannah
I have never been in such situation and I guess things like this happen when you rent your property to people. I think that your manager has to be hold reliable since it is her fault for not sending the breech notice. I understand you want an advice from people who had similar experience, but I am thinking about renting my house in Melbourne to tenants and just was wondering if tenants often end up not paying the rent and how long court procedures take…
Hold the PM liable. Talk to Consumer Affairs in your state about how to ensure they pay you. Do everything in writing (email is fine)… you will need it for consumer affairs and insurance. Your insurance might not payout on rental default since the tenant was not issued with notice to vacate immediately.
As a side note, I wouldn't be so quick to say "that's fine, pay me next month" to your PM. I get my PM to pay me fortnightly so I can see any issues quickly. If there are problems with rent money I am all over it like a rash. If there are computer glitches, your PM should pay you out of cycle to sort it right away. You have a mortgage to pay after all.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
There is no ‘computer glitch’ the agency is obliged to check the banking daily and to receipt the monies paid. You should be able to pull a tenant ledger at any time . The pm should review the statement prior to sending them out.
hannahbella3 wrote:she told me that it was just a glitch in the system and the tenant is only $120 behind,'only' $120 behind. Sounds like your PM doesn't recognise the importance of doing their job properly. Tenants generally should be in advance. Sounds like your tenant may be $120+ 2 weeks rent behind.
hannahbella3 wrote:so i said not a problem just monitor the tenant to see if she falls behind any further and just put the money owed in next months statement.Should have been more assertive at this point. Sends a clear message to your PM that you have service standards you expect upheld. At this point I would have requested supplementary payment to see if your were being told the truth at this early stage.
hannahbella3 wrote:so then the next months statement came and still no money so i rang the agent and asked whats happening and she said i dont know whats happened but the computer was wrong and she is actually 8 weeks behind in her rent.Once again sounds like an incompetent agent. I find computers are rarely wrong – it is more often data entry or failure to follow processes.
hannahbella3 wrote:my property manager is liable because they didnt send out the breech notice and to contact reba which i will do taday. by the time we get it taken to court the tenant will owe 12 weeks rent which will be $3840. my question is has anybody been through a similar situation?In addition to REBA I would also send a strongly worded email to the PM and their principal seeking immediate restitution of lost income. I would also get another agent on the job – rent rolls are important to agencies. Changing agents is one way of sending a strong message to this one. If they try and hold you to any exit clauses assert yourself on the basis of failure to perform required duties of PM.
Hi,
I think there is an authority which can handle your problem. call the fairtrade tribual for landlords to discuss this. And divorce your agent immediately!! This authority can act on behave of you..they are rangers who will issue the tenant with an eviction notice and force the tenant to pay. If they do not pay then they must vacate. There is a rangers fee however but this can be charged to the tenant. This can be implement immediately!!! Check on it however.
Regards!
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