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Tenant stopped paying rent after exchange

Discussion in 'Property Management' started by Biz, 2nd Aug, 2016.

  1. Biz

    Biz Well-Known Member

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    i have a property I exchanged on last week in nsw. I found out today that the tenant is 14 days in arrears (a month ago she fell behind too but caught up) and the pm can't not make contact with them. My concern is with settlement looming what happens here? Property was not sold with vacant possession. If the tenant decided to stay without paying what happens when settlement rolls around?
     
  2. Marg4000

    Marg4000 Well-Known Member

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    Unless you stipulated vacant possession in the contract then you will settle on time and inherit the tenant for the balance of the current lease.

    If legally allowed contact the PM and ask for appropriate notices be sent to bring rent up to date.
    Marg
     
  3. Biz

    Biz Well-Known Member

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    I'm not inheriting anything as I am the seller. :D Lease expired so it's just week to week now. Not sure if it's worth issuing a termination notice and stirring the pot.

    Just don't want a rogue tenant holding up settlement.
     
    Marg4000 likes this.
  4. JohnPropChat

    JohnPropChat Well-Known Member

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    I don't think having rent-arrears will affect settlement. As far as I know, Conveyancing people don't even look at rental roll.
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    They do in my experience as they make plus or minus adjustments to settlement calcs.