NSW Non payment of Water - Eviction?

The laws recently changed in NSW, you have always been able to breach on non payment of water however unlikely to get anywhere with NCAT.

Here is a link to explain the new legislation around issuing a termination notice for non payment of water (click on "tenant non payment"):
Water, electricity and gas in rental properties

This has made the process easier and more streamlined at NCAT, eviction is still not on the cards at first however could be achievable depending on the member. You would be looking to obtain an SPO and hope the tenants stick to it. In a perfect world your tenant would make a payment plan prior to NCAT application and start paying the water off to save yourself the charges that come along with applying and having your agent attend.

Water usage is not claimable through landlords insurance so ideally you do not want them behind on water at vacate as the bond may be exhausted paying for water usage and not much help with other issues that may be present at the outgoing.

 

Be prepared that NCAT may issue a payment plan, making them pay only $5pw. I've had this happen to me. If that happens I issue a PITA tax, and give my tenants a rent increase, so now they pay $5 + $20. Outcome is that if they decide to leave, you can collect from bond. If they stay, you get extra, and I don't adjust it back down again.

 

i like the idea of a PITA tax, but I can see a few potential problems with it

eg, bond wont be 4 wks, it will be 3.X weeks
more incentive for them to leave, without paying
bad blood

 

So the bond is reduced from four weeks, who cares? This happens with any rental increase. You might THINK there's more incentive for them to leave......but I've done this a few times now with more than one set of tenants......they never do. AND if they did, it would be great. I actually would prefer that they DO leave, I can claim losses from insurance. But they don't leave & I'm left to deal with them.

 

The requirement 9 l/m at the taps and dual flush toilets (have to confirm flush capacity) - this is only 3 Star.

 

I'd much prefer the tenants catch up, change their behaviour and stay
Costs associated with vacancy are far higher than the satisfaction I'd get from eviction and a bad reference

As for insurance, as i get older and slightly more wiser, I'm trying to avoid making claims

 

That's all well and good to say that, but these sort of tenants don't change their behaviour. These are the tenants you DON'T want. These are the ones that have been to tribunal & you've tried to have removed & the damn tribunal have allowed them to stay. So....if I've got to keep them, I get a PITA tax, which assists in the inevitable clean up when I DO get them to leave.

 

Another thing I'd like to add, since I can't edit my post.

This is not a snapshot of our portfolio. Most of our tenants are great, long term tenants, who pay their rent and treat the properties in an appropriate manner. They pay market rents, and maintenance is taken care of promptly. There have been two, that have had a PITA tax given to them. Both problematic tenancies. Out of the large number of tenants we've had over the years, only two of them have paid PITA tax.

 

What is a PITA tax and is it available in Qld. Wouldn't worry too much about evicting this tenant but we are on the Gold Coast and Re advises that with Covid, all the bnb's have turned into longer term rentals, so it might be against declining tenancy and rent.

 

Are there any possibilities to get a tenant to pay the missing amount of the 4 weeks bond when the rent increases? Say you had a tenant 10 years ago paying $200/week ($800 bond) and now the rent has increased to $300/week. Can you ask the tenant to top up their bond an extra $400 so you have a total of $1,200 in bond to cover 4 weeks?

 

Does landlord insurance renewals increase in price the following year if you make a claim? For eg. with EBM?

 

I have had Agents do this, but can't remember which State it was in. It's worth a shot to ask your Agent if they can do that.

 

Not that I've noticed.

 

You can breach the tenants for failing to provide the full bond if they refuse, though in most cases I find you're better off nagging them.

 

In NSW you can no longer do this.

EBM insurance does not increase if you make a claim