Obligation to fix items non-essential stuff, when tenants not up-to-date on their payments

This is only a hypothetical (at the moment, but likely to happen at some point), so I'd be interested to know what the allowable/required response would be……

The tenants are behind on their rent (only a few weeks, but it is a constant, ongoing problem), and because it is a QLD property (where I fund the water consumption and wait for reimbursement), I have to wait many months for them to pay me back for their water usage (ie. they are still paying off the bill for Dec' 15 - Apr '16, and I haven't yet received a cent for the bills since April).

If, at some point in the future, I get a request to fix a non-essential item - eg. the a/c isn't working - then do I have to get it fixed, or can I use the argument "I haven't got the money, because the tenants haven't paid their outstanding bills - once they are up-to-date on everything, I'll have the funds to get the problem fixed".

I can't see why I should have to keep everything ship-shape, if they don't have to meet their obligations as a tenant. So, what are my obligations, and where do I stand?

 

Yes you need to fix it if it was working previously when the lease was signed. The tenant not up holding their end of the agreement doesn't give the LL a pass to not repair items like an AC.
The system favours tenants unfortunately.

 

Legally you have to attend to maintenance. A broken air con, stove, toilet etc must be fixed regardless of outstanding rent.

It's just like we tell our kids - just because someone does something wrong, it does not mean you can do wrong too.

And the tenancy laws are quite strict - retaliate like that and the rental tribunal will make mincemeat out of you.

Just make sure your PM issues remedy notices when appropriate. If things go pear shaped, you need good written records.
Marg

 

Going to disagree with this snippet. SA legislation says must repair and "was like that when we began" doesn't cut it. Might be slight variations in other states.

 

It does not always work that way,and if the property is in Qld,and if the right forms are not given within the strict time--frames..Then the insurance will not pay for loss of rent damage ect,have a read of the link below..

Offences relating to the Act | Residential Tenancies Authority

Maintenance and repairs | Residential Tenancies Authority

 

Unfortunately, if these guys are moved out, I'm going to have to spend a fair bit to get it back up to spec again (needs new carpet and a new paint job). I don't quite have the 'spare' funds to do this at the moment, so I have to leave them there until I can accumulate enough to get the work done.

This would be much easier and quicker to do if they paid their bills on time .

 

Not the right attitude if you ask me. Breach at first opportunity. Make repairs and maintanence as soon as it's needed/requested.

Anything else just causes problems. Leases are contracts. Hold up your end and expect them to hold up theirs. If they don't, get new ones, end of story. Let a little arrears slip, then don't keep up with maintaince, find yourself on ACA.

 

I have definitely kept up with all maintenance requests, and promptly. I was just wondering if, in the future, I decide not to fix a non-essential item might be a way to prompt the tenants to actually pay their bills.

If I get a breach notice sent, and they they make a token payment (e.g.. pay $20 off a $200 bill), does this then put me back to square one? Should I get a new breach notice sent every week until they are up to date with their bills?

 

This isn't a wise way to go - because then you psychologically link rent payment with repairs. This leads to them stopping payment when they want repairs in the future. Need to make it clear that rent is to be paid on time every time regardless.

Not sure what state you're in (all of them are different). Here, the breach notice says Pay $X within 7 days or move out. So if they haven't paid their $X and still in the property, then there's a problem.

You can see more info on how i showed other PM's how to handle arrears here - Following up Rent Arrears

 

I am assuming you have a PM.
They will advise you of the correct procedures.
Keep in touch with them and make sure breach notices are issued promptly as needed, and yes, even if it is every week or so!
Marg

 

It sounds like I'm being too nice - every time they make a small payment, I see that as progress. I know that they are battlers, and I'd like to think I have a good social/moral compass. Having said that, I know I need to see the property as a 'business', and treat it accordingly.

I'll get onto the PM about starting the breach notices……… Thanks everyone.

 

It doesn't matter how many breach notices you send out, it doesn't cost you any more.

So, why wouldn't you do it?

 

TBH, it has nothing to do with being nice, battlers, social/moral compasses, etc.

You and your tenants have signed a legal document agreeing to certain obligations and responsibilities. If one party fails in their obligations and responsibilities, the other party is entitled to seek remedies as per the legal document and the law. End of story.

 

amen

 

I've just sent the PM an email requiring all the appropriate actions now be taken to recover the money, or deal with it according to the legally allowable/enforceable options.

I'll keep you in the loop. I may be looking for new tenants, or a new PM, soon.

 

I should say so. Your PM should be on top of this. If not, time for a new PM.

 

Problem is, this is now the second PM I've had for this property, and I only purchased it in November 2015.

This one came very highly recommended by a number of people on PC, so I thought it would have been fully rectified by now (there were already issues with the non-payment of water bills when they took over in May, and was of the understanding that they would chase it up and get it all sorted out). Now I'm regularly hearing that the tenants are saying that 'they haven't got the money this week', but I don't think it is being correctly, fully pursued.

I think I need to start playing hard ball. But (excuse my ignorance), I thought the PM would deal with this stuff without me constantly have to check where things are at, and chase them up. I thought that's what the PM fees were for……..

 

You would think so. Personally I have found it difficult to find PMs to actually do what you pay them to do. @Hedgy seems to have found a good one. Maybe they can give you some tips? This is a post from another thread. I think it is good advice.

 

My PM is fan-bloody-tastic. She only does inner west Sydney so if that is the area you're looking for, PM me and I will pass on her details.