Tenant in arrears, I want to evict

This is in Sydney NSW. Tenant is around $2k in arrears, she was paying $420 a week but had demanded we reduce the rent. My property manager told me I should agree to a rent reduction because when this inevitably gets to tribunal, the tribunal will require us to give a rent reduction and if we have not, that would be the first step, so I might as well. So on this advice (which I'm not even sure is correct) I agreed to a rent reduction to $370 pw. Nevertheless I've given her the 90 day (is this even the minimum period? I want her GONE) eviction notice as of last week.

She's currently paying $420 pw with $50 going towards the debt she owes me.

Questions I have are:
1) was the advice the PM gave me correct regarding the tribunal likely outcome? was I right to give her a rent reduction, with the goal of wasting no time when this matter gets to the tribunal? I assume she won't leave on her own volition when the 90 days are up

2) she's deep in arrears so was a 90 day notice the best we could've done, given it's now September 2020? Is the eviction moratorium still in place in NSW as of today? Can I give her a new notice of evict with a shorter period (e.g. 14 days) now or at the end of September or whenever I'm allowed?

My goal is to lose the least amount of money and get her out. The place is worth about $420 pw today on the open market. Suggestions? TIA

 

You're using a no-grounds termination notice? Why not apply on the basis of rent arrears?

 

1) The tribunal will want to know whether the tenant is Covid affected (household income has been reduced by more than 25%) so the first thing your PM should have done is obtained evidence to confirm this.

If they have been affected, then tribunal will want to see that you have made attempts to negotiate a fair outcome which usually includes a rent reduction. If not, then your PM is incorrect.

2) The moratorium ended in June. If she's not covid affected then you can evict her on 14 days notice. Not sure why your PM went for 90 days if there is so much arrears.

Do you have landlords insurance (with rent default coverage)? The good news is she's currently paying so the arrears is not building up and bond will cover most of the existing arrears.

 

Thanks for the replies

@Mel Morgan yes they're covid affected (but what's that even mean? she's a sole trader and not making enough money, is it due to covid? can't say...) so I guess that's where the PM was coming from in recommending I accept the rent reduction. But as you say, if the moratorium ended in June, can I give her a 14 day right now? No landlord insurance for this property.

 

So if you weren't going to use rent arrears as a basis for termination, what was the point of giving a rent reduction?

 

I get you have your rights to evict the tenant now.
But you can't afford $350 a year for landlord insurance?

 

Why do you want her GONE ? Because she can barely pay as her income is clearly affected ? But she will say you agreed and have recinded the agreement to defer. She pleads hardship and the Tribunal may agree... then....

Is it they or her ??

 

I'm pre-empting the tribunal requiring me to give her a rent reduction as a first step. So basically I want to say to the tribunal "see, I already did give her a rent reduction" and move to the next step whatever that is

 

They wouldn't require a rent reduction if the reason for your termination is not to do with rent arrears.

Now it looks like it is and you've potentially opened the door to allegations such as it being a retaliatory use of a no-grounds termination.

 

**** you're right... yeah I'm going to change PMs after this.

So I think what you're getting at is, I should give her a 14 day notice asap? what would you do?

 

Not really. More that you (or the PM) should have had an earlier strategy and stuck to it regarding seeking termination.

Whether you should seek termination based on rent arrears depends on your prospects of success. On the face of it $2k arrears is quite a serious breach, but probably ameliorated by the fact that they are now keeping up with payments, as well as the fact that the arrears was due to a covid related cause.

So not a strong application for termination just based on those short facts. It may be that a no grounds termination was your only realistic option.

 

fair enough thanks for the insights