WA Covid regulation: How to evict tenants with rent arrears ?

Discussion in 'Property Management' started by chibs, 4th Jan, 2021.

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  1. chibs

    chibs Well-Known Member

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    Hello,
    Our tenants have not been paying rent and water bills. Not Covid-related hardships, just not willing to pay.
    We have sent the tenant a Remedial Notice, because we have to go through mandatory reconciliation. It's been over 3 weeks, we haven't heard from the reconciliation officer (I suppose things slowed down during holiday season).
    I wonder if we'd better off serving a Termination Notice now. Can we go to court after serving termination notice ? Mandatory reconciliation is taking their time.
     
  2. thatbum

    thatbum Well-Known Member

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    You can't issue a breach notice or a termination notice for rent arrears unless you've either done the mandatory conciliation, or entered into a rent repayment agreement with the tenant - which has subsequently been breached.

    Maybe try the latter?
     
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  3. chibs

    chibs Well-Known Member

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    We had the mandatory reconciliation session last week after waiting for 2.5 months. Personally feel it's a waste of time. They said reconciliation process takes approximately one hour, but it ended up taking close to half a day.
    Tenant is a retired woman and the type that thinks she is smart and tries to talk her way out of her obligations. We sent her water bills through email. She hasn't paid her water for 7 months or so. During the reconciliation session, she claimed she doesn't have an email. She has definitely sent emails to us previously. The reconciliation officer seems to be at lost on how to communicate with her about the agreement.
    The whole process is disappointing. It's been almost a week and we haven't had a closure and a resolution from the reconciliation. We are in a limbo state where no agreement was made nor can we evict the tenant. Despite their claim that they are impartial, their proposed resolution is siding with tenant and put us at a disadvantage.
    We've been making a loss for this property due to the market downturn. Also don't have a property manager for the same reason. Feeling very frustrated. The law doesn't provide good protections for landlords.
     
  4. thatbum

    thatbum Well-Known Member

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    The covid period is ending soon. Why not use a no grounds termination instead of rent arrears?
     
  5. Sackie

    Sackie Well-Known Member

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    I can emphasize with your frustration. I've had to evict a few folks in the past in Brisbane and Sydney but I didn't have to go through all that nonsense. Seems ( as I don't know) WA laws are too skewed towards the tenants.

    Probably get a PM in the future. At least you have some level of screening at the beginning.

    Hope it works out
     
  6. chibs

    chibs Well-Known Member

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    Can we start issuing the notice now or do we need to wait until the covid period is over ? Also, not sure what's up with the reconciliation, if we disagree with a resolution, should be expecting some sort of certificate stating the disagreement ?
     
  7. chibs

    chibs Well-Known Member

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    Thanks, Sackie. It could be just we're unlucky to have dodgy tenants during covid emergency period. Can't end a lease, evict or increase rent :(. Any disputes have to go through mandatory reconciliation and from the looks of it they're on a huge backlog making the process so slow and so disorganised. We've pretty much lost faith in the system.
     
    Last edited: 25th Feb, 2021
  8. thatbum

    thatbum Well-Known Member

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    Assuming its periodic, you could have issued a 60 day notice a month ago so the vacate date was 29 March.

    Have you looked at the legislation? The conciliation is one of about 5 things you need to fulfil to try and terminate for rent arrears. I'd be surprised if you fulfilled them. You're probably actually wasting your time with it, I'm sorry to say.

    I haven't actually heard of a single tenant being terminated by the court for rent arrears in WA during the covid period.
     
  9. chibs

    chibs Well-Known Member

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    Woww really ... so we have indeed wasted time thinking we could evict by following the procedure.

    I suppose we aren't aware of this and that time thought the only thing we can try is the mandatory reconciliation. Tenant is paying her rent on and off. Overall, she's 3-4 weeks behind. Taking into account the water bills she hasn't paid, the bond won't be enough to cover it.

    How is the court wait time ? Would you know ?
     
  10. thatbum

    thatbum Well-Known Member

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    Depends which Magistrate court it goes to. Typically its 3 or 4 weeks to Registrar first court date, and then anything from 2 weeks to 8 months for a hearing after that.

    But that's all wasted if you don't fulfil the requirements for rent arrears terminations.
     
  11. chibs

    chibs Well-Known Member

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    The no grounds termination sounds less complicated.

    Thanks for the info, we'll consider our options and work something out.
     
  12. Piston_Broke

    Piston_Broke Well-Known Member

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    This is exactly why you need PM.
    You instruct them to terminate and they need to get it done. It's their job to get it done and they know the laws better than most landlords.
    May take a while, and covid won't help. Still the PMs job.
     
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  13. chibs

    chibs Well-Known Member

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    We have been through a few PMs, but haven't found a good one yet. A few years back we had a drug dealer dwelling in the house and also abusive toward his partner. The neighbours have told the pm about this, but the pm never told us. Until one day, the police raided the house and the house was badly damaged from the siege. The PM reported the incident, but he didn't want to handle the aftermath. So we're left with a badly damaged house, junks, rubbish. We requested the PM to handle insurance claims but the PM has since disappeared and never answered calls. So ever since then, we decided we should learn the rules and self manage.

    Reconciliation finally came back to us today saying tenant disagree with the proposal and wanted to pay her water bills from her bond. Reconciliation took 2 weeks and even now, we still haven't got a certificate.
     
  14. Piston_Broke

    Piston_Broke Well-Known Member

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    I have had a few issues with PMs years ago. I think most of us here have.
    I have no idea where you are and what choice of PMs are available.
    And I know plenty people who always think they can do better job than a PM...It always end up the same way. Not if, just when.
     
  15. Sackie

    Sackie Well-Known Member

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    IMHO this is a big mistake.
     
  16. Stoffo

    Stoffo Well-Known Member

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    Done deal, tell them you agree to pay the water bills from the bond after tenant vacates*.
    *that the tenant vacates within 30 days, leaving the property in good condition with all rent arrears paid up to and including the vacate day :p

    Do you have landlord insurance including rental default ?
     
  17. Perthguy

    Perthguy Well-Known Member

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    Hi and welcome to Perth where will you will struggle to find a PM who knows the laws better than most tenants. Had a mate with an expensive PM where the PM screwed up the eviction process, resulting in the tenant staying an extra 6 weeks during which time tenant damaged the property that was not covered by insurance as it was malicious damage. Not uncommon for Perth.

    Had another made who went DIY and got a successful eviction order first hearing.
     
  18. Sackie

    Sackie Well-Known Member

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    That's crazy. What's wrong with the PMs there? Or are tenants just highly on the ball to manipulate and take advantage of the laws as much as they can..?
     
  19. thatbum

    thatbum Well-Known Member

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    They're not really trained in residential tenancy law. Apparently its only a couple of hours during the 5 day course or whatever the PM training is these days.

    I haven't met many that seemed to have even read the legislation.
     
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  20. Sackie

    Sackie Well-Known Member

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    I must be missing something, isn't that an integral part of their role, understanding the relevant legislation..?