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Advice for WA Rent in Arrears and PM

Discussion in 'Property Management' started by TsunamiJ, 8th Jul, 2016.

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  1. TsunamiJ

    TsunamiJ New Member

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    Perth
    Hi all

    I am in WA and appreciate advice on the situation we are in. Currently our tenants (start Feb 2016) are owing 7 weeks in rent and 2 water usage charges. We have kept on the PM toes in pursuing these with emails and calls, we have responded quickly on all maintenance issues throughout (old house) to give the tenants a good livable house. PM was on since 2014 (previous tenants were ok)

    The first time it happened we were missing 3 weeks (PM transfer monthly), PM had each time email saying that she has met with the tenant and they promised to catch up. Next month comes, they paid but it was for the current month. I questioned PM and they said the husband and wife has recently divorced etc. It's the new month June and this statement we only got 1 week rent. That means they had missed a total 7 weeks and the water bills that we wanted to recoup. The lease ends on 31 July. They have requested a 3 months renewal in early May (start of issue) which I haven't agreed to.

    My wife and I note that the only losing party now is us as the PM charges us for her inspection / maintenance visits and management fee accordingly. I now have instructed PM to confirm full payment date and look for supporting docs to claim my RentCover.

    Can anyone please advise on how we should have done to resolve the issue (e.g. warning letter, eviction notice, blacklist tenants on a database) ? If we change PM, I do not think that the new agency would be responsible and the current PM would care less since we are terminating.

    Sorry for the long post but I really appreciate your advice on this. Thank you.
     
  2. thatbum

    thatbum Well-Known Member

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    Did your PM issue breach notices or notices of termination? Or at least advise you of your options to do so?

    If your PM failed in this basic duty, then time to get a new PM, possibly immediately.

    Look its fair enough to give a tenant a chance, but you/your PM should be at least commencing the process in case it needs to go further.
     
    Perthguy likes this.
  3. TsunamiJ

    TsunamiJ New Member

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    Thank you for your advice. Yes I am looking to do so but would that be wise to change now whilst this issue is not resolved? New PM may need the keys/entry to property for photos and access to do a property condition report.

    I do admit that we may have sympathised with the tenant and also the PM. I have instructed the PM to do so (yet to hear back) along with all documents to claim LL insurance, the first chance given probably was too much that we felt taken advantaged for the second time around . In saying that, can I issue a breach notice to the tenant directly?
     
  4. bricksmaker

    bricksmaker Member

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    I went through a similar situation a few years ago. Had ongoing problems with difficult tenants who then decided to stop paying rent about 4 months before the lease was due to expire. I instructed the PM to issue a notice of termination. In WA there is one of two forms that you can use. The long-winded way is to issue a breach notice giving them 14 days to rectify the rental arrears and then to issue a termination notice if the still haven't. The shorter way is to issue only the termination notice. Unfortunately, my PM issued the breach notice first which just added to our losses. So I definitely think the fast-track method is the best way to go if you don't think the tenants will catch up with the rental arrears.

    The PM also didn't want to go to court afterwards, and wouldn't put their name on the defaulting tenants register until I had obtained a court order. Needless to say this agent no longer manages the property. I do it myself now and haven't had any problems in the last three years.
     
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  5. TsunamiJ

    TsunamiJ New Member

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    Thanks for the advice homely. We were really sick for weeks and an update is after multiple pressure they have paid up which is lucky for us. They want to extend the lease which we are not keen but WA rental market is very quiet at the moment so have to consider it seriously. In the process to change the PM as soon as possible.

    Another question if we signed a management authority form that ended in 2015 but didn't sign another does the 28 days notice period still applies to terminate the current PM and changeover?
     
  6. thatbum

    thatbum Well-Known Member

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    Probably, knowing the wording of the standard management agreement in WA. But honestly, this is something that you should be reading your contract to find out.
     
    Phase2 likes this.
  7. Phase2

    Phase2 Well-Known Member

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    If they want 3 more months make them pay upfront? Otherwise kick them out, change your agent, discount your rent and get someone else in quick.
     
  8. Azazel

    Azazel Well-Known Member

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    Changing the PM comes up fairly regularly on here.
    Maybe it's like better the devil you know or something, some don't seem to want to change.
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I wouldn't be keen to keep the tenants on but as you say it is not a good market at the moment. Have a look at how much they are currently paying and what comparable properties in the area are currently (not asking but achieving) for rent.
    As today is the last day of their lease you now have no choice but to roll them over to periodic lease as you have not given notice of non renewal of their lease. They can roll over to periodic without a new lease and then you don't worry about letting fees etc from the PM.
    You now have to give them ummm @thatbum knows, maybe 60 days notice to leave.