WA - Termination of contract due to non payment of rent

Discussion in 'Property Management' started by Rooky, 28th May, 2017.

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  1. Rooky

    Rooky Well-Known Member

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    I had a tenant in Perth served termination of contract notice due to non payment of rent. This was done after giving him due notice and following proper procedure by property manager. Tenant left the premises but also left some of his belongings and property was damaged.

    • Original tenancy agreement was ending on 18/01/2017.
    • Notice of termination was given asking tenant to vacate property by 07/11/2016.
    • Tenant left their goods and property was damaged. I had to spend money to make it rentable.
    • Property manager has given notice to tenant demanding rent to be paid till 10/11/2016 (tenant did not return the key and property manager took possession only on 11/11/2016 by changing locks)
    • Property manager is pursuing claims for damage repair. Property manager is also pursuing rent till 10/11/2016.
    Can I claim rent till 18/01/2017 or only till termination of contract? That was the original date contract was to end. I did not find new tenant till end of March 2017. My property manager says that I can claim rent only till termination of contract because we ended the contract. I see that as unfair. What's your view?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Why has it taken 6 months to lodge your claim?
     
  3. Perthguy

    Perthguy Well-Known Member

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    It's not really about what is fair or not fair, what does the law say? @thatbum?
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

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    That used to be the rule in SA (not anymore). Not sure in WA if they still have that?
     
  5. thatbum

    thatbum Well-Known Member

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    Generally you can only claim rent until the termination of the tenancy. Note that you instigated the termination of the tenancy by issuing the notice of termination. Otherwise the tenancy actually terminated on the date that the tenant vacated on or after the vacate date on the notice.

    I don't understand why the PM had to change the locks to take possession - didn't they have a spare key? The fact that the PM was even able to change the locks implies they already had possession...

    Assuming the tenants actually left on 7/11/16, then that is all you can legally claim rent to unless there's something very unusual in your case.

    The good news is that some landlord insurance policies will allow you to claim from the insurer above what you might normally be legally be allowed to claim from the tenant - worth investigating.

    @Scott No Mates raises a good point too - why has it taken so long to make the claim? And also why did it take so long to find a new tenant? (Although Perth is pretty slow rental wise I suppose)
     
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  6. Rooky

    Rooky Well-Known Member

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    Both me and PM are slack in following up.
     
  7. Rooky

    Rooky Well-Known Member

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    Yes. Fully agree.
     
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  8. Rooky

    Rooky Well-Known Member

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    Rearding why it took 6 months to lodge claim - laziness is the only answer - both myself and PM.

    Why it took so long to find new tenant - you answered..Perth market plus Xmas time.
     
  9. thatbum

    thatbum Well-Known Member

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    Fair enough. The 6 month delay probably isn't a big deal by itself. Very technically, you have 6 years as a limitation period for claims under breach of contract.

    But yeah, you need to really closely look at the substantive merits of your claim. Hopefully the component of your claim for damages is legally sound.
     
    Perthguy likes this.