Frequent rent arrear

Discussion in 'Property Management' started by skyfury, 23rd Mar, 2018.

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  1. skyfury

    skyfury Well-Known Member

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    I have bad tenant good at playing rent rule. They do not pay rent for 14 days until agent send "Notice to vacate" letter, but in VIC, law asks for one week postage time, until one week later, which is rent arrear in day 21, agent can apply for VCAT. This tenant always pay some rent during day 14 to 21 period, to make "Notice to Vacate" letter void, they have played this game for more than 4 months and before the second hearing, they eventually payed all rent arrear.


    I transferred agent recently, and this tenant starts to play this game again, now they are in 7 days rent arrear, I know they are playing same game as before.


    I am aware maybe there is some chance to win VCAT when tenant is in frequent rent arrear when they always do not pay rent on time, in my condition, it is this case. Tenants do not pay rent on purpose, and they have plan to pay some when it is day 14 to 21. Both my previous and current agent have told me there is rare chance to get possession order. Maybe I have to accept this fact. I would like to double check with PM and landlord here, have you even won this kind of case?


    Thanks and have a good weekend.
     
  2. thatbum

    thatbum Well-Known Member

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    Depends what your grounds for termination are.
     
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  3. Lacrim

    Lacrim Well-Known Member

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    I have a long term tenant like this. As long as they do eventually catch up, I'd hit them with a few consecutive rent rises till they get the message.
     
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  4. Eric Wu

    Eric Wu Well-Known Member

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    has the lease expired? if not, it could be difficult to let them go, before lease expires, just don't renew the lease and give notice to leave.

    if the lease expires, you could give them notice and let them leave

    ( these are my experience, not professional advice)
     
  5. skyfury

    skyfury Well-Known Member

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    Fixed lease has more than two months to expire.
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    We are doing a termination "without reason" for similar reasons - just late too many times.

    The Y-man
     
  7. Eric Wu

    Eric Wu Well-Known Member

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    a good idea to get in touch with your PM and tell them you want the tenants out and let them handle it for you.
     
  8. Lil Skater

    Lil Skater Well-Known Member

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    How long was the lease for?

    If it was under 6 months you can issue a 60 day notice to vacate, if it’s more than 6 months you can issue a 90 day notice to vacate - however the final date on the notice to vacate has to be the same day the lease expires. If you cannot serve these notices your next bet option is a 120 day no specified reason notice to vacate.

    You can still issue your rent arrears notices with the other notice to vacate in effect.

    When you say the tenant pays some rent, are they still in arrears at day 21? PM needs to calculate it on a daily basis. You could also ask whether the PM is willing to issue the 14 day NTV in person. It needs to be served to someone at the property over the age of 16, they would need proof they’ve served the notice of this person (and I would strongly suggest the PM takes someone with them). It’s not ideal and VCAT prefer to have registered post receipts, but it’s still a legal way to serve the notice and speeds up the process.
     
  9. D.T.

    D.T. Specialist Property Manager Business Member

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    Melbourne still doesnt have email?
     
  10. Lil Skater

    Lil Skater Well-Known Member

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    We do, but it needs to be agreed in writing and I don’t know anyone that’s yet used electronic service of documents at VCAT. They’re a bit old school. Maybe one of the other Vic agents roaming around here have tried it?

    I find a lot of agents aren’t embracing electronic communications despite it being legal for a while now. Therefore most aren’t inserting the clause and corresponding email addresses into the lease. Also, VCAT online doesn’t allow electronic service yet - still a few years away apparently. VCAT online stores all previous notices, hearings etc. so there’s a trail.

    Personally I would do it all for a repeat offender. Call the tenant, email tenant saying you’ve called them and here’s your notice, knock on the door and give to someone at the property, post it registered and normal mail. Do all the things to get rid of them.
     
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  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Jesus that's strict. We just need an affidavit that we delivered to the letterbox or posted.
     
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  12. L3ha7

    L3ha7 Well-Known Member

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    I have been facing the same issue, my new RE agent has also tried but tenant is still still behind , in VIC many faces the same issue
     
  13. skyfury

    skyfury Well-Known Member

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    Yes, tenants find flaw in law. we can not do much
     
  14. skyfury

    skyfury Well-Known Member

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    yes, that is end of fixed term contract, could not evict this kind of tenant out before end of contract.
     
  15. skyfury

    skyfury Well-Known Member

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    Thanks for your opinion, it is quite professional. Lease is one year and it has two months left. 90 days notice to vacate has serviced. Deliver ‘Notice to vacate" letter by person may be challenge. Tenant can lie they have not received the letter in court. The way you say about asking one more person come together to verifty could be a useful way, but most agents are very busy, two agents go to one property together, maybe they do not prefer this way.
     
  16. skyfury

    skyfury Well-Known Member

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    Forgot to answer this. Yes, when tenants pay some rent during day 14 to 21, they can still in rent arrear, some time they pay 10 days, so rent arrear become 11, and when it catches 14 days again, agent send another letter, they pay some rent between day 14 to 21 again, to make it less than 14 days, this lasts for 4 months.
     
  17. Redwing

    Redwing Well-Known Member

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    WA (Wait Awhile) has moved to emails

    The best PM's we've had from PM's in various states have been from Sydney, straight onto any issues
     
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  18. Lil Skater

    Lil Skater Well-Known Member

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    They can’t lie if you have them sign it, take a photo, or a witness.

    I know agents are busy - but you’re the one paying them for a service.

    It takes a little extra time doing this, but not nearly as much time as it does to continually do new notices, take them to the post office, wait in line and then do it all over again because the tenants know how to work the system. And again, you’re paying the agent for a service - I don’t think it’s an unreasonable request if you have the same issue over and over.

    If you’ve got a NTV already served doing this way may only speed up the process by a week or two at best, but something to keep in mind if you find yourself in the same position (hopefully not)
     
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  19. skyfury

    skyfury Well-Known Member

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    It is very helpful advice!