NSW Dodgy tenants stopped paying rent

Discussion in 'Property Management' started by Lollie, 2nd Aug, 2020.

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  1. Lollie

    Lollie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    165
    Location:
    NSW
    Through my PM, I had a 3 month agreement with the tenants for a reduction in rent from $650 to $500 per week. Both tenants claimed a significant loss in hours due to Covid-19 but only one of the tenants provided payslips which I now believe to be dodgy but I'm still investigating.

    Instead of sending the PM a proper written request for rent reduction, they were rude, running my property down and threatening to move into another property in the building if I didn't negotiate and said they have put a hold on the rent in the meantime. I didn't like their threatening behaviour.

    When the 3 months was up I contacted my PM and asked, now what? She said she contacted the tenants to see what their current income situations are and said she'd be in touch and that she has updated records to reflect their rent has gone back up to $650 per week from 7 July and if the tenants request further compensation she will ask them to provide evidence from their employers that they’re still Covid-19 affected.

    I will touch base with you once I hear from the tenants she said. This was on 15 July. I heard nothing and assumed the tenants were paying rent.

    On 31 July I received a statement which showed they stopped paying rent altogether on the 6 July.

    When I messaged the PM on Sat she said she hadn't heard from the tenants and she'd have to look at the ledger on Monday.

    Further, I did some investigating today. Only one tenant provided payslips and they look dodgy. It appears they were constructed by a business associate of the other tenant. The payslip doesn't say what he does, there's no ABN for the employer, can't find the name or registered address of the employer anywhere.

    Both tenants have professional photos on-line- one a qualified dentist/hypnotherapist with his own business, the other an IT specialist.

    I believe the tenants are liars and I'm annoyed with the agent and want to change.

    I want these mongrels out of my property. What can/should I do?

    thankyou :)
     
  2. Tom Rivera

    Tom Rivera Property Manager

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    1st Jul, 2015
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    1,841
    Location:
    South East Queensland
    I can't comment on the specifics of getting them out because COVID regulations are state based, @Mel Morgan is definitely the one to speak to about that.

    What I will say is that I'm apalled your agent let them fall three weeks (or more?) behind without bringing it to your attention, unless they were paid quite a bit ahead?

    It also sounds like they didn't provide proper substantiation for the rent reduction?

    Definitely consider changing.
     
    Rugrat, Lollie and wylie like this.
  3. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    6th Jun, 2017
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    729
    Location:
    Sydney
    Your PM should definitely know as soon as your tenants go into arrears and be discussing the breach with you and sending notices to get it rectified asap.

    Are the tenants on a fixed term agreement? Do the tenants payslips match their original application employment details? The first thing I would do is determine if they are genuinely affected and by more than 25%. Either way, if they have stopped paying altogether, you would have reasonable grounds to apply for a termination as the moratorium has expired in June.

    More info on the NSW Covid regulations: Residential tenancy moratorium on evictions during COVID-19
     
  4. Lollie

    Lollie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    165
    Location:
    NSW


    I appreciate your response Mel. The lease has expired. I couldn't believe the PM didn't contact me about the arrears. I'll ring her in the morning and check the payslips.

    I heard the moratorium expired in June but wasn't sure if there was something else I missed, thank you for this. As they decided to stop paying rent altogether I'll try and get them out.
     
  5. Lollie

    Lollie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    165
    Location:
    NSW
    I went over the paperwork and there's no way proper evidence for a rent reduction was provided.

    I'm appalled my PM didn't ring me too, the tenants were never ahead and I'll be changing agents tommorrow
     
    Hayley Cannon likes this.
  6. Lollie

    Lollie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    165
    Location:
    NSW
    Apparently there is another moratorium on rents in NSW that was re-introduced last week or the week before.
     
  7. Lollie

    Lollie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    165
    Location:
    NSW
    The tenants made a payment on the 31st July so it didn't show on my statement. They continued to pay the same $500 per week that was agreed to for 3 months but which has expired.

    The agent said she sent them an email a couple of weeks ago about an increase in rent back to what it was and didn't hear from them. She is going to contact them today and try and negotiate a higher rent.

    Only one tenant was affected by Covid hence one lot of payslips, dodgy looking payslips at that.