WA First Timer Terminator of Tenancy

Discussion in 'Property Management' started by Frank Frick, 20th Oct, 2021.

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  1. Frank Frick

    Frank Frick Member

    Joined:
    28th Sep, 2017
    Posts:
    16
    Location:
    WA
    Hello.

    I would like to get this egg-and-spoon journey over the stepping stones across the river to a vacated rental going, step by step. It's doable, but I have no experience.

    Context:
    ~> NRAS Villa rent is set 20% below *previous year*'s market rent
    ~> at odds with upward movement of actual live rental market, NRAS rent was discounted an additional 10% from 1 May 2021 (by NRAS valuation made 12 months previously),
    ~> Market rents have risen 20% in 2021.
    ~> NRAS scheme on this property completes 23 Feb 2022.
    ~> I'll then need to rent it on the open market, or sell it.

    Tenant:
    ~> 50-ish male lives solo in 3brm NRAS Villa.
    ~> carried on living there after his wife and teen daughter left him in Oct 2019
    ~> rent defaulted to monthly Oct 2020
    ~> Pays rent reasonably, inattentive to cleanliness but no biggie
    ~> heavy smoker inside breaching the lease conditions (and smoke tar damage is well-established)
    ~> been a maintenance pest (i.e. times when nothing was wrong).
    ~> in addition to getting a rent decrease from 1 May 2021, he contrived a claim for 6-month's rent-free rent compensation: depression and anxiety caused by "water in the walls", and water on the electricity in the roof space. (There was a ridge-cap water drip, which started a ceiling stain, which gradually grew to 12cm x 4cm, and the shower cubicle needed re-grouting, which was already done professionally and in his presence 10 months before he issued the writ).
    ~> accepted pre-hearing settlement $500 today... in the lobby of the court house.
    ~> has not yet submitted his income details as required to prove ongoing eligibility to be an NRAS tenant. If he is not, then my tax rebate incentive stops.

    Me:
    I'm not under financial pressure, but have not been enjoying NRAS ownership, which comes with a captive arrangement between the qualifying NRAS provider and their approved compliance and property manager. I don't feel I get responsive service, and need to keep watch on what they are doing. I've had to stop them from paying repair bills because they do not check that repair work has been done adequately, nor do they supply the receipts unless I chase them, and even then I have not been 100% successful...

    The property is a 45-minute drive from my house, which is definitely a drag as I have a self-employed job... Spending two or three hours going down there to sort things out is a minus in a couple of ways.

    With NRAS ending, there is no inducement to continuing to hold this property… It is working class, and outside 15km from the CBD. It is not in a growth leading area.

    I think selling during the first quarter of next year is a suitable idea, so I can do something better with the money freed up.

    Objective: get the tenant out before Christmas so I can renovate and either rent+sell or sell vacant. I'll likely make a loss, but putting the money on a better course will get to break-evens sooner and surer than waiting and holding.

    PLAN:
    1. SECURE THE NRAS INCOME/ELIGIBILITY FORMS
    2. Then GIVE IMMEDIATE NOTICE of TERMINATION (NoT) with no grounds and 60 days from service date.

    PropMgr has email tracker that will show date of receipt. And will do it in writing simultaneously.

    3. I expect he will apply for an extension, but having no kids and being employed will make that harder to get.

    I do not want him hanging on fighting for continuation of his fortnightly/monthly tenancy, as I need to get the renovations done so that I can move to a real market rent, or to a reasonable sale price by Feb 2022, when its NRAS rebate ends.

    One risk operating that I can see is that he can claim that my termination is in revenge for his assertion of tenant's rights (the rental compensation he sought). As that has only just been resolved, it could look that way to a magistrate. He could even claim that he was bullied onto accepting the $500 with the threat of eviction. (the reality is that his Tenants' Rights Advocate told him to accept $500 peace offering, because it was fairer then he had a right to expect.)

    The actual determining reason is wanting to bring the property to market conditions, which cannot be done while he's living there, because I cannot rectify smoke damage (painting, new blinds, carpet dry-clean) while he continues to breach the lease conditions by smoking inside.

    Q: Can anyone suggest any other actions I can take to reach my objective? Pitfalls to avoid?
     
    Michael Mitchell likes this.
  2. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    1,387
    Location:
    Brisbane (Nundah)
    Easy,
    1. use you rights to go through the motions of sale process to annoy him - open homes etc.
    2. breach and cont. to breach and follow through with eviction for him smoking inside etc - make sure you have your ducks in a row with date and time stamped photos as evidence for xCAT + professional cleaners opinion by way of getting walls cleaned to remedy the damage and seek compensation for that
    3. push further re: his financials to ascertain if he's NRAS elegible
    4. given the point above, and you have all his personal information through the application process, if it's warranted, you may wish to make an anonymous complaint if you suspect their is welfare fraud on the tax payer going on from his dealings with Centrelink etc, they will investigate and apply pressure that way too.

    Do all these things in parallel. Once it's done, don't make the mistake again :)
     
    Last edited: 20th Oct, 2021
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    If you wanted him out, why didn't you make that part of the settlement terms? Seems like a giant wasted opportunity.

    And I agree, for at least the next 6 months, its going to look like a retaliatory eviction.

    I'm confused about the NRAS thing - if you don't want to do it... then don't?
     
    Michael Mitchell likes this.