Tenant Termination Notice

Discussion in 'Property Management' started by Martinez22, 14th Mar, 2017.

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  1. Martinez22

    Martinez22 Well-Known Member

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    My PM recently issued a Termination Notice to the tenants due to rent being in arrears.
    Can someone please advise me on what is the correct process within WA?

    We handed in the notice, and apparently if they haven't paid by the date we can lodge the termination with the court so that I receive the bond? - is this right?
     
  2. WestOz

    WestOz Well-Known Member

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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Been a while since I've worked in WA but from memory the form says (in polite proper terms) pay up in X days or get out. If they do neither, then yes you can take them to court. What happens from there is a range of things depending on the circumstances:
    - Judge orders them to get out of the house after X days and gives you the bond to help cover
    - Judge orders a payment plan where they pay extra each week to catch up the rent and they stay in the property.
    - Or anything in between.

    Being that WA goes via the court system rather than the Tribunals that the other states have, its usually a bit more black and white as to what you get.
     
  4. Martinez22

    Martinez22 Well-Known Member

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    Thanks for your response! Hope its option one.. i want them out :mad:
     
  5. Perthguy

    Perthguy Well-Known Member

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    You want this page of the site @WestOz linked to:

    If the tenant/s receive proper notice to end an agreement but refuse to leave, the lessor can seek a court order to end the agreement and take possession of the premises. The order can be enforced with a warrant authorising a bailiff to evict them.

    Evictions

    You would then apply for the bond, which is a separate process.
     
  6. thatbum

    thatbum Well-Known Member

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    Uh that's the very short version. Its gets technical quickly though because of service periods and the fact there's actually two different types of rent arrears termination notices. Gets even more complicated once you move to a bond claim, which is a completely separate issue from terminating the tenancy itself...

    I don't want to have to write a whole essay - isn't this something your PM should be on top of?
     
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  7. Martinez22

    Martinez22 Well-Known Member

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    Hey spoke to PM today, luckily the tenants have agreed to mutually end the lease..so I don't have to go through all the court hassle. Thanks for your responses!

    Unfortunately my PM isn't very good, hence why I like to hear other investor feedback
     
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  8. WestOz

    WestOz Well-Known Member

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    What areas the property?
    Maybe someone can recommend a better one
     
  9. Big Will

    Big Will Well-Known Member

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    I would be concerned if your LL insurance will cover your rent loss due to mutual termination. If you have no LL cover I guess it isn't a problem :)
     
  10. Martinez22

    Martinez22 Well-Known Member

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    I do have LL insurance, apparently the tenant is going to pay back the outstanding rent before she vacates. But would be interesting to see on what conditions the insurer will provide rental cover
     
  11. Martinez22

    Martinez22 Well-Known Member

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    So say I lodge this to court, and they release the bond to pay off the outstanding rent. What if the lease agreement is until October 2017, what happens to all the proposed rent? Is that something the insurer pays out on or is there no way to recover this income?
     
  12. Big Will

    Big Will Well-Known Member

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    I would be speaking with your insurer as I am not aware of you policy nore can I comment any further.

    The policy I have is;




    (a) your premises suffer loss or damage and become unfit for living in and we have agreed to pay under Section 1 and 3
    (b) your premises can not be occupied due to prevention or denial of access
    (c) your premises can not be lived in due to death, murder or suicide at your premises
    (d) the tenant has defaulted in the payment of rent
    (e) the tenant vacates your premises without notifying you


    Sum Insured:
    Up to $1,500 per week loss of rent (or any higher amount if shown in the policy schedule) for up to:
    - 52 weeks for claims under (a), (b) and (c) above
    - 6 weeks for claims under (d) or (e) above
    less any bond monies remaining after deducting amounts legally entitled to deduct from the bond



    If you were to agree to mutually break lease with the tenant I would say they will not cover you as you agreed to the break lease and so there is no lease in place. If I went to court and got a verdict I would be able to claim and the amount I would receive would depend on the situation.


    TLDR speak with your insurer before making changes to the lease if you are going to try and claim rental loss.
     
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  13. Martinez22

    Martinez22 Well-Known Member

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    Hey guys, following my last post. We sent the termination notice, lodged the app to the courts for a formal eviction which is in progress. Just received news from the pm that the tenant has vacated without paying arrears. Soo..what happens now? I need a formal eviction notice from the court in order to claim for insurance, what happens to the court hearing? or my bond for that matter? :confused:
     
  14. Martinez22

    Martinez22 Well-Known Member

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    BTW my pm said this has never happened to her...so I'm not relying on her opinion
     
    Last edited: 22nd Mar, 2017