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SA - Form 2 served (apparently), what now?

Discussion in 'Property Management' started by mini2, 29th Sep, 2015.

  1. mini2

    mini2 Well-Known Member

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    My SA fun continues :)

    Rent is paid up until 9 September, Form 2 was (apparently) served on 25 September so what should be done next? All I've got is a lousy letter from the PM saying oh paid up until 9 September and Form 2 sent. Do you want us to lodge a form with SACAT? They're too busy to pick up the phone or responding to email or phone calls so I'm flaming.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Did they background check the tenants beforehand? Did they call/write to tenant to advise they missed rent payment a day or so after it was due? Sometimes it's an accident like forgetting to transfer money between accounts that all of us have done at some stage or another. Have they tried to recover arrears at all since then?

    Form 2 (if you're unaware) is a breach notice (called different things in different states). There's a copy of one here if you've not seen one https://www.sa.gov.au/__data/assets...e_to_tenant_to_remedy_breach_of_agreement.pdf

    So what happens is: they're 14 days in arrears, they get sent the above. They get 7 days following the receipt of that to catch up on their rent or be evicted. To do this, you have to go to SACAT (SA Tribunal). If it's the tenants first offense and/or they come up with a sob story, the Member will likely put them on a payment plan asking them to pay $X above the rental amount in order to catch them up. If they fail at that, then you can go back to SACAT again and evict.

    To prevent tenants gaming the system, they recently brought in a system where if you get 3 breaches and rectify them then that's grounds for eviction.

    Unfortunately the system is very tenant favoured and we can't do much about that. The returns available from property investing are commensurate with their risks. To smooth out the process, it's very important that all letters are served correctly and on the correct number of days.
     
    Jackson, 2FAST4U and Jess Peletier like this.
  3. mini2

    mini2 Well-Known Member

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    Apparently they forgot to pay rent...these tenants are inherited from the sale and they've been there for 7 years. Will see what happens tomorrow as they're suppose to rock up with 4 weeks worth of rent.
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    You'd think if they have been there 7 years they would be decent. However, maybe that's why the previous owner sold as they didn't have much luck with it either?

    Good luck at tribunal :)

    When does their lease end? (You also inherit the same end date as previous owner would have had)
     
  5. mini2

    mini2 Well-Known Member

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    So the tenants paid 2 weeks rent last Friday making them only slightly in arrears. Their excuse was they ran out of limit on their debit card. What the...and promised to make the payment right after labour day holiday.

    Fast forward to today, now they're back to 15 days in arrears :)
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    Exceeded the time (14 days) when another breach can be sent.

    3 breaches and you're out, even if you pay up.
     
  7. 2FAST4U

    2FAST4U Well-Known Member

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    At least it wasn't their credit card :p

    Edit- Sounds like they'll be out soon anyway. Which suburb is your property in?
     
  8. mini2

    mini2 Well-Known Member

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    Smithfield Plains. Lesson learnt - next time find someone who's unemployed on benefits, at least it will have to come outta Centrepay :p
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    I have tenants in same suburb who have never missed a payment and recently got an increase too.
     
  10. Nemo

    Nemo Well-Known Member

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    Yeah but yours are complainers.
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Yea, but there can be the odd complainer in any suburb.

    9% yield is commensurate imo.