Housemate Refusing to Pay Rent - Advice Needed

EDIT 7/1/14: Managed to talk in person with this housemate and sort everything out. Was not hostile in any way and all arrears have finally been paid.

The eviction date was set and there has been no need to involve any outside authorities.

I just thank my lucky stars as this has turned out to be the best possible outcome and i know from reading the forums that many people have not come close to a resolution like this.

At least now, thanks to your help and a lot of research, im going to be way more vigilant when it comes to having a sub-tenant.

For anyone that comes across this thread, best thing to do if you're in a similar situation:

  • Tenancy Union – They helped me a great deal and allowed me to explain my situation and gave me in depth steps on what to do next.
  • Consumer Affairs – They gave me all the necessary links and forms for Notice to Vacate and information on a Possession Order.
  • VCAT – Although not particularly helpful (probably due to being an authority and not an advice line like the Tenancy Union), they did explain how to fill out and understand the form.

Thanks again everyone who commented some form of advice. All greatly appreciated!

EDIT 6/1/14: Thanks everyone for all your input and advice.

I've called VCAT, Consumer Affairs and the Tenancy Union and know exactly what i have to do now.

They are indeed a sub-tenant as i am renting from an owner, and don't own the property myself. As such, the sub-tenant still has all the rights outlined in the Residential Tenancies Act.

  • I need to serve the Notice to Vacate form with 14 days notice.

  • The subletting agreement that was signed between myself and my housemate is legal and can be used as evidence in a hearing.

  • I can't refuse entry.

  • I can't dispose of their possessions unless they are perishables.

  • I can get someone from the Tenancy Union to do a goods inspection to deem which is acceptable and which is not.

  • I can move their things to storage after the vacate notice has expired.

  • I can get a Possession Order from VCAT only after the vacate notice has expired.

  • If i want to claim bond or compensation, VCAT will issue a tribunal hearing which will address the issues and any compensation.

Housemate finally got in contact, and will be here tomorrow. Getting prepared for a stern chat, will update on what happens!

EDIT: I will be calling the Tenancy Union and Consumer Affairs come Monday to see what my options are. It all comes down to what the housemate is classified as. It's my understanding that boarders or licensees have little to no rights, whereas a sub-tenant will require proper notice of eviction (14 days in this case) because they are over more than 14 days in rent.

I've posted this same topic on Whirlpool, but i'm hoping someone on this forum has something they could add.

http://forums.whirlpool.net.au/forum-replies.cfm?t=2203155&p…

Hi everyone, i've done a search of the forums and read through so many threads i think my eyes are now square. This is a giant wall of text documenting everything that has happened, there is TL;DR at the end.

I have a situation where myself and my girlfriend are renting a 2 bedroom apartment just out of Melbourne City.

In an attempt to save a bit of money faster, we decided to sublet our spare bedroom out.

This is how we have set it out:

  • Have permission from Property Manager and Landlord to sublet.

  • Have a set of rules and a sublet agreement drawn up by myself that includes:
    ~ start/end date of said agreement
    ~ persons included in the agreement
    ~ amount of rent due and when it is due
    ~ signature and date of all included
    ~ copies have been given to everyone

  • Bills are included in the price we charge to simplify everything.

  • Have taken a bond in advance and lodged with RTBA.

We have been doing this now for just over a year having 3 successful short term housemates come and go without a problem.
Bringing me to today where our 4th housemate has not paid rent for a whole calendar month and is avoiding all contact via messaging and calling. All their possessions are still here.

On many previous occasions, i have asked for the rent to be deposited and each request has been met with varying degrees of excuses ranging from: I will do it on insert date to "My ex owes me money so they are going to transfer it to you…", etc…

I'm trying to settle this without either of us becoming hostile as it is in everyones interest. Although this is proving difficult since there is no contact.

The amount of rent owed exceeds the bond taken by ¼ as of today, so any further waiting is a loss and i just want to cut this off as soon as possible.

What further complicates the issue is that she is not a part of the rental agreement between myself and the real estate, so that puts rental blacklists out of the question as well as asking the property manager to serve an eviction notice. (I was in the process of gathering documents from the subtenant to put the housemate on the lease).

Does anybody on these forums have any idea how to handle this situation or what you would do in this situation?

I have considered bolting the doors from the inside to prevent access until she gets in contact.

What options do i have in terms of lodging a claim with the RTBA to release the bond to me and or pursuing the unpaid rent?

I know for a fact the sublet agreement/house rules that were signed between me and the housemate will not stand up in court so i don't think i have a leg to stand on in that sense.

Also, if i bolt the doors and prevent access, what options do i have of removing them from the premises? i.e involving the Police if necessary.

TL;DR

  • Subletting spare room
  • Housemate not paying rent
  • Possessions still in apartment
  • No contact with housemate
  • Housemate only in written sublet agreement with me
  • Housemate not on rental agreement with real estate
  • Bond taken and lodged to RTBA
  • How can i resolve this without hostility?
  • Can i bolt the doors to prevent access?
  • Can i have the Police remove the housemate from the premises?
  • What are my options in lodging a claim to the bond and unpaid rent?

In final, i just want to say while this does seem like a mess and i may not have any options at all, i thought it would be worthwhile to see if anyone had any advice.

Thanks in advance for reading all this and giving any suggestions.

Comments

  • +1

    Are you sure that something hasn't happened to them?

    • +2

      That was my first thought, however you can't update your Facebook status if you're in trouble or dead.

      What annoys me is i have messaged them on Facebook as well. No answer.

  • If you haven't even seen them (not just refusing to pay), maybe explain it to the cops then report them as a missing person. Maybe the cops have some guideline on the minimum time required before you can assume they're not returning.

  • Oh - and ask for advice specific to your state on http://www.propertyinvesting.com or http://somersoft.com/forums/

    • Thanks! I'm going to check all that out today!

  • +4

    Personally, I wouldn't be asking for advice on these matters on OzB or WP; just looking at the recent chicken coop fiasco will tell you that the advice here will range from merely ill-advised to dangerously stupid. Issues with residential tenancies have a way of blowing themselves out of proportion with minimal effort anyway, so you really need well documented advice from a reliable source (pertinent to your locale, as RT legislation varies state to state) to back you up. Anonymous advice from the interwebz won't help you if you inadvertently breach your state legislation.

    You already have a valuable resource in place:

    Have permission from Property Manager and Landlord to sublet.

    …speak to your own PM for advice, they've clearly ratified the deal, so hopefully they've got the professional experience to at least point you in the right direction.

    • I know the advice is going to vary, as i did read the chicken coop fiasco. However i would still like to know what others would do in this situation. I have received very intelligent replies from both OzB and WP.

      Involving the Property Manager/Landlord in this situation would be my very last resort. I don't know my property manager very well but she appears to have a very short straw.
      I rather like where im living now and would like to renew my lease when it ends.

    • +1

      Take photos of all her stuff on a nice neutral background, then list everything on eBay.

      Send her links to the auctions.

      Wait.

      • 95% sure that is illegal. Would be nice though because there are some very valuable items in there!

        • Only 95%? LOL

        • The other 5% is the temptation! Hahah!

  • I would suggest you contact both the RTBA and your State's relevant Tenants Union authority for advice:

    https://www.google.com.au/search?output=search&sclient=psy-a…

    I don't think you have much of a chance to access the rent owing or evict the tenant at the moment. Certainly I don't think it would be legal to change locks, restrict access in any way to her property or remove her items. Get the absolute correct advice from the right authority before you do anything at all. Whilst you are still having some kind of communication (via Facebook or whatever) with the tenant try to keep things as civil as possible and advise them that you want them to move out asap. Keep a record of all communication. Follow the correct procedure (per Tenants Union) to have her evicted or you will end up with even bigger problems. I think that, once she has left, you would have some avenue to take legal action for non payment of non paid rent, but not until (of course) you have followed procedures to the tee. I certainly wouldn't be looking to sub-let to any other prospective renters in the future; just too risky.

    (Years ago I had a neighbour that had a friend sub-let with him, who took his property when he left. The Police would not assist him in recovering any of his property. Apparently you cannot charge someone for stealing if they live under the same roof. Perhaps it is just too grey an area for Police to deal with. Don't quote me on this; only what the neighbour told me).

    Let's hope she takes the hint and moves out very soon. Good luck.

    • I will be calling Consumer Affairs and the Tenancy Union on Monday for what to do next.

      If the housemate is classified as a boarder or licensee, then i have the upper hand and can deem any amount of notice justified.

      If the housemate is well and truly a subtenant then i will have to serve her with the written letter of eviction from VCAT giving 14 days notice to vacate.

      In both cases, i have the option of claiming the bond back and chasing up any arrears in rent.

      I've had nothing but positive experiences with the first 3 housemates, so i'm not going to let this housemate rain on my parade. I just need to be more vigilant and less of a pushover when it comes to getting rent in on time.

      It has been a fantastic way to save money so far and while i can survive without it, it's basically extra money in the bank for a deposit on a house one day.

      I'm hoping everything is civil and we both part ways without having to involve any law enforcement or authority, but thanks for letting me know what could happen if they do turn nasty and take my possessions.

  • Dump her goods. Contact your property agent to advise that you will be sub-letting again & next time ensure you have rental fee up front

  • You have a written and signed subletting agreement and have lodged the bond with RTBA.

    I'm thinking that unless the wording of your agreement was particularly bad, that you have a subtenant.

    You could try bluffing her by sending a message this morning telling her that tomorrow you will be giving her the 14 days notice, and that you will be pursuing all arrears in a civil court.

    Alternately, if she chooses to see you to return her key and gets all her sh*t out today that will be the end of it (with you obviously keeping the bond.)

    That way you at least get to sublet the room again sooner.

  • +3

    Posted an edit of what's happened today. Going to speak to the housemate tomorrow and let you all know!

    • Any update to this?

      • +2

        Oops! Forgot to post the edit that i posted to Whirlpool.

        Added to original post now if you wanted to read the resolution!

        • +1

          Nice. Thanks for the update. Great that the outcome is good & good info for others who might face the same situation.

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