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Tenants not paying the new rent amount

Discussion in 'Property Management' started by morgzzz, 31st Jul, 2016.

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  1. morgzzz

    morgzzz Member

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    Hi all,

    Frustrated at the moment, one of our tenants was notified back in April that their rent was increasing by $20 a week, effective mid June (we are in NSW)

    Just received rental statement through & the tenant is STILL paying the old rate, has been told by the agent to transfer the difference last fortnight, as they are so close to be in arrears.

    Statement issued on the 28th of July with rent paid from 16/7-29/7

    The agent tells me it's not technically overdue.
    There is $205 sitting in their trust because it can't come out until it's a full weeks rent....

    The tenant is week to week...

    What would you do?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Reminder notice doesn't go astray.

    There's no reason that the agent can't transfer less than a full week's rent other than sheer laziness to have to check the calculation on the comms.
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, just have the agent issue a reminder letter.
     
  4. Azazel

    Azazel Well-Known Member

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    I would probably keep hassling the agent to hassle the tenant.
     
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  5. Ricky Adelaide

    Ricky Adelaide PM in Adelaide -Elizabeth Salisbury Modbury Business Member

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    Really your agent should be on top of this. Paying rent is always a voluntary action on the tenants behalf. In SA (where I am based) you really can't do anything to actually "force" them to catch up until they are 15 days in arrears- the time line may be different where you are. Other steps should be taken along with a formal letter informing the tenants that their payment history makes up a sizable portion of their ongoing renewal process and reference processes should demonstrate that late/tardy payments are not tolerated.

    Have a conversation with your pm and really understand what steps they are taking and how they plan to address the situation if the tenant does not respond with immediate payment.

    Wish I could tell you about a magic quick fix but ultimately you can only check that your PM has a good process, is actually doing what they say they will and then trust them to keep you informed - assuming you have a good PM that is ticking these boxes.
     
  6. Azazel

    Azazel Well-Known Member

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    It's good when you find a good one, and they actually proactively tell you what's happening, instead of having to chase them for updates.
     
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  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    I agree
    send a reminder notice that there has been an increase in rent
    remind tenant that they are getting further and further into debt as they pay a lower amount and it will be a matter of time before they are issued with a break notice.
     
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  8. Ricky Adelaide

    Ricky Adelaide PM in Adelaide -Elizabeth Salisbury Modbury Business Member

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    All good ideas Xenia, as a owner I wouldn't be too fused if I know my agent is on top of it.
    Their hands are tied to a certain degree but if they keep you informed it gives you confidence to trust them and know if things change you will know that as well!
     
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  9. wylie

    wylie Moderator Staff Member

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    If they don't start paying the correct rent, then I would think you can push to issue a breach notice once they get a certain number of days behind. Check the rules for the state you are in though.
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    A reminder letter is just part of the agent following up - should be done as a matter of course.
     
  11. Big Will

    Big Will Well-Known Member

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    Depending on the legislation for VIC it would take a while to issue breach of notice at $20 p.w. being behind.
     
  12. Owlet

    Owlet Well-Known Member

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    It is a lovely system. The tenant who is meant to pay $350 pw for example comes in and only pays $70. They can't be breached because they are only 5 days behind (needs to be 14 anyway). I was in disbelief when I was first told they had paid for x days rent. I would like to see landlords be able to charge a late payment fee - tenant can still be in arrears but by paying late they are hit with a $5 per day or $20 per week late fee.
     
  13. Ricky Adelaide

    Ricky Adelaide PM in Adelaide -Elizabeth Salisbury Modbury Business Member

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    agreed, the best time to fix any arrears issues is before they become a matter for tribunal. A series of actions need to be employed so if it does eventually go to tribunal you can show you have given the tenant every opportunity to catch up and anything other than this means dragging it out longer for all involved.
     
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  14. Big Will

    Big Will Well-Known Member

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    Worst part is if they are 14 days behind and you issue notice, if they come in and pay $5 on the 14th day they are not 14 days in breach. They could keep coming in each day and putting the daily amount to keep them at 99% behind but still in front of breach notice.
     
  15. Azazel

    Azazel Well-Known Member

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    Shh, don't give them any ideas.
     
  16. S.T

    S.T Well-Known Member

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    They may have just forgotten to update their net banking auto payment of rent, happened to me once. No excuse, but it does happen.
     
  17. jim1964

    jim1964 Well-Known Member Premium Member

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    [QUOTE="Ricky Adelaide, post: 257280, member: 2481"I wouldn't be too fused if I know my agent is on top of it.[/QUOTE]

    Communication is the key,if you know what is going on and in the loop, at an arms length sets the mind at ease.
     
  18. Ricky Adelaide

    Ricky Adelaide PM in Adelaide -Elizabeth Salisbury Modbury Business Member

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    Yeah, its annoying but that is when you don't renew. The power of indifference is key here. As a owner and PM, at the second instance of what I believe to be shenanigans (say day two they come in, as their may be actual personal issues) I am straight up about it (unfortunately I inherit a lot of these types). Pay your rent in full, on time and look after your house and our owners generally let you stay as long as you want to. Don't as they are moving you on as soon as we are able to.

    In cases like you mentions Big Will its a pain managing this kind of So&So because these types normally have a bag full of tricks, but that is why you pay for a PM. Not for when things are going right but to handle things when there is a break down of sorts.
     
  19. Lil Skater

    Lil Skater Well-Known Member Business Member

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    The only thing I'd add to the above is to annoy the c*ap out of the tenants. I will literally send a text/call daily, they usually get sick of me within the week and pay it :D
     
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  20. Big Will

    Big Will Well-Known Member

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    Yup and that is the correct method of how I would deal with these types of tenants. No lease renewal and issue notice to vacate with correct notice period.