Tenants Hasn't Paid Rent for 2 Months in Canberra

Hi Team just trying to navigate a tricky situation where my tenant is just not paying for the property they have leased. They initially came up with some excuse or the other but have now completely stopped responding. I have sent out a couple of notices to remedy and now a notice to vacate but have received no acknowledgment or response. I have now lodged an application with ACAT (the tribunal in Canberra) but unsure what follows next. I believe I have been very understanding landlord so far but with constant interest rate rises my limits are being tested. I was as is out of pocket by a decent amount of money with rent being paid, now without it, the emergency funds are depleting fast.

I understand every state has different laws around tenancy but just trying to get a general idea around how to navigate the situation from people who might have experienced this before.

Update: Thanks all for the support shown and in some cases not so much. Yes there is a lease in place and i gave the tenants multiple chances to pay up. I even set up a payment plan post discussions with them identifying what is convenient for them. post the dur date of there payments and subsequent rent they have gone silent and are not responding at all. My fault is, I was trusting enough for a relatively longish durantion and thought that i am helping someone in trouble without realising its me who is being taken for a ride.

Comments

  • +41

    bikies

  • +16

    Does your Landlord Insurance cover you for Rent Arrears?

    Do you have an Agent?
    (What are they doing?)

    • +33

      If you dont have agent & insurance .. ( what are you doing? )

      • +12

        'Saving' a few bucks each month. :)

    • +2

      Self Managed..its too late now, but in discussions with an agent.

      For knowledge sake, how would the situation have been any different even if i had an agent? Csn an agent do much if tenant refuses to Pay rent?

      • -7

        Refuses? The first non payment was 'can't wasn't it?

      • +26

        If you had used an agent, the agent would not have allowed the situation to get this far. They probably wouldn’t even have recommended such a crap tenant in the first place.
        Although an agent would have started the same process, it would be without delay and with knowledge of how to navigate the system.
        More importantly, you would not have to devote any of your time to dealing with it.

        • +33

          This is true but not always. I had a Property Manager once that did not realise the rent had not been paid for 2 months until I told them. And then they did not issue the eviction notice even though it was their written policy to do so once rent was 15 days overdue. They were discussing the problem with the tenant. My point is that even when you have a PM you still need to monitor what is happening.

          • +17

            @Yola: I can second this. Was in similar situation. Agents aren't always diligent.

          • +1

            @Yola: very true

        • +13

          If you had used an agent, the agent would not have allowed the situation to get this far. They probably wouldn’t even have recommended such a crap tenant in the first place.

          haha, sif.
          plenty of agents are more than happy to stuff shitty tenants into places for their cut, and they take on little if any risk for doing so. you're basically paying them to advertise the place and fill out the paperwork, then do cursory inspections every x months.

        • +4

          I almost have similar case as OP and have an agent. The tribunal itself takes 5 weeks and then more time to lodge for sheriff notice to get them to vacate. So yes, we would not need to deal with these things but still a long wait either wait.

        • +8

          Mate had an Agent ended up being 8 months no rent went to VCAT twice…..Had mental illness and was part of the reason he took his life there were other factors but if he got her out he would have moved in and things might have ended up different……Sad but true……

        • +7

          My agent who was the co-director of the agency, knowingly rented my place to known criminal and used my property to make drugs.

        • wrong. a lot of agents are so slack they would have allowed it to happen. They shouldn't , but time and again they do.

      • +4

        If you have an agent, you don't get so emotionally attached. It's business. I know that sounds heartless but that's how you need to treat it sometimes.

        Disclaimer. I have a house I rent out while I rent in another city. It's managed by an agent. I respond to all maintenance issues within 24 hours of notification. I've never said no to any reasonable request. I've also had renters skip town on me too.

        • +3

          @Pertuan
          Understood. Thanks

          i will be going down this path in future as it takes too much toll in personal life.

      • Yes

      • They agent would have known the process to follow to get them out, and they wouldn't need to ask non professionals on a forum what to do

    • +2

      Most rental arrears policies are limited. It’s likely the OP will be left out of pocket even if they started the process to evict at day 15, which is the earliest it can be done.

      • Sure, but "limited" is an awful lot better than "no limit". There is a big difference between having to wear some of the cost out of pocket and being bankrupted by those costs. Having insurance is wise.

    • +20

      Real estate agents are the most useless people in the world.

      • +2

        It baffles me that a REA makes 2% on a million dollar sale doing jack and a lawyer or conveyancer bears the brunt of any problems (e.g. lawsuits etc) if something goes wrong because they're the ones giving advice on the contract. I doubt a lawyer or conveyancer charges 20k fee for a million dollar sale though.

        • Because most of a real estates time goes towards finding more work.

          Every sole trader spends a % of their revenue on marketing and finding work but with real estates it's more like 80-90%.

          So of that 20K on a million dollar sale, probaby $16K of that is paying the guy to drum up more work and 4K of it is his actual effort and time on the sale.

          • +1

            @muzzamo: So it costs $16k to find the next property "For Sale" ? And once that's sold, another $16k to find the next property ? You only need a phone and car to be a REA. (True story - I once called an agent to look at a property. She said come into the office first and I can go over the details before heading out to inspect. Then when we went to leave the office she said - "do you mind if we go in your car - mines at the mechanics" !!!)

  • -1

    where is the address?

  • +1

    Go knock on the door?

    • +2

      Evil landlord! Kill them all!

    • +3

      Looks like your judgement pressed the right button.

    • +50

      I wonder if you will remember the tunes on the same violin..if your work place refuses to pay you for your work…

      and will the lenders you owe money too listen to your tunes instead of requesting your money back.

    • +13

      How do you say "I'm a renter" without saying you're a renter?

      • -2

        The same way you don't say "I'm a landlord"?

        • I'm neither, so I'm not quite sure what you're trying to say.

      • -6

        They are lazy, not hardworking, not smart enough, hence can't buy a house and always blame and hate the owners for no logical reason.

        • -1

          That's an assumption, and times are really tough for a lot of people at the moment, so it has nothing to do with the reasons you have stated.

      • +1

        Watch sky news

    • +15

      spoken like a true parasite.

    • +2

      one can assume you are a renter.

    • +4

      Genuinely curious why you hate on landlords? Have you had a bad experience renting?

      I have been renting for 12 years now. I've had some shitty unresponsive landlords during that time but probably overall my experience has been fine.

      Nonetheless, I still understand that in our society a private housing market is needed to provide enough housing for everyone.

      Does your dislike come for a genuine reason or are you salty cause of your position as a renter?

      • +4

        treating shelter as an investment vehicle has contributed in large part to the dreadful rental crisis situation we find ourselves in today.

    • +1

      Does Ozbargain give out awards for most negs?

      Asking for a friend

      • You get a free rental, from uncle Albo.

    • Reddit's leaking again.

    • -4

      Poor people crying always funny 😆

  • +45

    My friend did this with a non responding tenant.

    Went there and ripped out all the fuses in the meter box.

    The tenants were very communicative after that.

    • +18

      Sounds fun but do not do this OP

      • +59

        I notice that you didn't decry the tenant refusing to pay the rent as a scumbag move…???

          • +2

            @Iwantthebestprice: "we don’t now live in a country where it’s ok to leave a family with no electricity because of non payment of rent."

            Greed was always going to get us.

              • +44

                @Iwantthebestprice: It is just untrue that any loss can be recovered.
                It is also untrue that just because you can claims costs as a deduction that there is no damage to the landlord.
                Firstly, there is an excess on your insurance.
                Secondly, claiming on your insurance may well increase your premiums.
                Lastly, deductions are not fully reimbursed. For most landlords they will reduce their tax by the amount of their losses. That means that they will likely going to get just under half back AT MOST.
                I doubt the OP thinks a human life is worth less than the outstanding rent - but they likely think that people should honour their commitments, and that their tenant's failure to do so is hurting them financially. None of those things seem unreasonable. Tenants are not your family, and they are not a charity. Landlords are not responsible to house them for free.

                  • +31

                    @Protractor: Sure - but if tenants want to mooch off someone, they should try their families.
                    If they won't subsidise them, why should a stranger?

                      • +39

                        @Protractor: Mooching. Unpaid rent for 2 months, no longer communicating but still residing at the residence? That's pretty much mooching I'd say.

                  • +14

                    @Protractor: Of course. We're people with bills to pay, responsibilities to ourselves, family and community.
                    We're not individual charitable organisations.

                  • +15

                    @Iwantthebestprice: I never justified the removal of fuses, stop trying to pretend I did.
                    Do you feel the same way about bank deposits? If a bank decided one day to stop paying you the contractually agreed rate of interest, and you were left to sue them at significant personal expense and inconvenience, do you say 'oh well, its an investment and we always knew there was a risk'?
                    Stop trying to justify the tenants not paying what they have agreed to pay.

                    • -3

                      @Almost Banned: Yes banks are struggling with cost of living. Great comparison.

                      • +17

                        @Protractor: Oh, you know the tenant and their financial situation?
                        Maybe pass on a message to them to pay their rent.

                        • -6

                          @Almost Banned: No. No-one here does. Are you being obtuse? The OP wrote half a sob story. Is he a crap investor, or just a greedy landlord, or a battler? You show me where he provides any detail to define what we are actually discussing. If he/she is reading they can clarify immediately. Another click bait and run outrage post, hoping for some inflammatory comments.Wake up.

                          So are banks a victim or a profiteer of the current situation, and therefore comparable to this 'setup' scenario??

                          • +10

                            @Protractor: Why do you need to label the landlord to be able to 'define what we are discussing '? That's the point. You don't know either parties reasons etc. But fact is someone has a contract that they decided to take out and committed to. Now they aren't paying, not communicating and have taken the landlords goods. This is theft. I don't see how one type of theft seems acceptable to you. Would it make a difference if you found out the landlord was a battler or they were renting themselves etc etc?

                          • +4

                            @Protractor: Why does it matter if the OP is a greedy landlord, crappy investor or a battler?

                            Does or change the nature of the problem? No, of course not.

                            If you’re having financial problems then you should communicate with your landlord and try to come up with a solution. Not just ignore the problem and hope it goes away.

                      • @Protractor: @Almost Banned then by all means, please plead with the bank and tell them "no one should have a guaranteed return on any investment, as with all investment a risk is carried, and the bank can still claim it on tax as is the bank's right"?

                      • +3

                        @Protractor: I don't think you understood the comparison. Or maybe you did.
                        So the outcome of the investor not being paid, is only ok if it's for a 'good cause'? Ie. Individual cant/won't pay up.

                        The outcome for the investor, THE PERSON, is still the same in either situation so how do you feel about the investor not being paid their interest?

                  • +15

                    @Iwantthebestprice: @Iwantthebestprice Why don't you just say out loud to this forum that landlords should just give out their home for the renter for free for the rest of their lives because you know, they are already rich and the family is "poor".

                    Why don't you just stand in front of Coles/Woolies and scream at them that they should just give out their groceries for free because they are already "rich" and "no one should have a guaranteed return on any investment"?

                    If this is not a constructive confiscation, I don't know what is.

                      • +12

                        @Iwantthebestprice: @Iwantthebestprice
                        Apart from having no issues with tenants paying rent, blatant disregard for the how insurances and taxation work. You are now promoting stealing if one is facing hardship.
                        Well thats no way to live in a civilised society. Hardwork is only way out of hardship and not stealing

                      • +1

                        @Iwantthebestprice: You are right - I have little to no compassion for criminals, human or otherwise. Plenty of people struggling who aren't criminals that my compassion can go to - it's the battler underdogs that Australians rightly love, not people who steal and/or advocate for theft as you are

                    • @burningrage: If this is not a constructive confiscation, I don't know what is.

                      I agree. You don't

                    • -1

                      @burningrage: This is what 'greens' are saying, the competent must pay, everyone should have all equal cars and houses, doesn't matter how much they worked, how efficiently they worked

                  • +5

                    @Iwantthebestprice:

                    1. Tax deductions don't make things free
                    2. The excess is usually more than 1 months rent
                    3. If you aren't paying your rent you don't deserve the rights of a tenant, you are an illegal squatter
                  • @Iwantthebestprice: “Claim it on tax” does not mean they get their money back. Best case they would get 45% back but much more likely to be around 25-30%.

              • +20

                @Iwantthebestprice:

                In a country with tax benefits for landlord insurance and the fact any loss can be recovered by insurance means the landlord untimely will not lose out.

                Thank you for demonstrating you don't understand taxation nor insurance.

              • +8

                @Iwantthebestprice: Pfft. My tenant cracked my sink along the entire length of it, and stained 12sqm of carpet. Because it’s 10 years old, even though it was completely clean the year before they moved in, it is worth nothing and I can’t get anything back from my tenant from their bond, nor landlord insurance. Going to try lodging at QCAT but don’t like my chances.

                It seems very heavily favoured to tenants in QLD, even if the tenants are shit heads.

                • @Benno007: 10yo? That called fair wear and tear, surely?

                • @Benno007: Your complaint is nowhere near as justified as the OP's. The reason you can't get anything from either insurance or QCAT is because this is absolutely normal wear and tear, for which you should have had allowed when you rented the property out. A cheap 10yo old carpet is going to need replacing no matter what, and old sinks do crack.

                  You seem the epitome of a landlord with a strong sense of enititlement, unlike the OP. I don't think it is the tenant who is the shithead here.

                • @Benno007: Typically carpets have a 'shelf life' of 10 years. Tenants who damage carpet in a rental property can only be held liable for the remaining shelf life of the carpet at the time that they vacate the property.
                  Hey, but you've claimed the depreciation and have the cash in your back pocket - so just replace the carpet.
                  You want your cake and eat it too.

                  • @MITM: Not when it was only tenanted for 2 years and was perfectly fine with no stains and their dog pissed all over it and smelled of piss…

              • @Iwantthebestprice: I'm sure you can help make payments on behalf of the non paying tenant since you're such a good guy and all. Bank still needs their repayments too you know.

            • +8

              @Protractor: We live in a country that will leave family with no electricity or gas because of non payment of utility bill

              Taken from energy ombudsman website

              Your electricity or gas supply can be disconnected when:

              you don't pay for energy you've used
              you don't pay an overdue amount
              you don't agree to any of the retailer's payment plan offers
              you don't keep to your payment plan, you miss a payment or your payment is late
              your payment plan is cancelled
              you don’t maintain contact with the provider (for example, you don’t let them know you have an EAPA appointment or you’ve made a payment)

          • +12

            @Iwantthebestprice: Actually we DON'T live in a country where it's acceptable to just screw someone over financially, ignore them and continue taking their goods. That's called theft.

            It's not the landlord's responsibility to make sure they still have electricity. Electricity isn't even a human right. It's the consumers responsibility to pay the bills that they're contractually obligated to pay. And that includes rent.
            None of the excuses/reasons you listed give the person the right to put others in a financially difficult situation.
            So scumbag move for landlord but just a bad move from tenant?

            • -1

              @cookie2: "It's not the landlord's responsibility to make sure they still have electricity".

              Dead wrong. Until the tenancy contract is terminated, both the tenant and the landlord are bound by what's in it. If the tenant falls in to arrears the contract is not somehow invalidated. That means whatever clauses are in the tenancy agreement apply, one of which will be the landlord's obligation to maintain the structure of property. Maintaining a connection to the electricity grid, gas mains and water supply is part of this obligation. In other words, a landlord can't turn up on a whim and pull out someone's fuse box, or cut off their water supply. Also, under the law, any alterations or work to the property needs to be put in writing to the tenant with sufficient notice.

              The rules are there for good reason. In this example it's clear that the tenant is at fault, but what about another example where someone who wasn't in arrears had a landlord who behaving like this? The law is not emotional and it applies evenly to everyone. You can't just do whatever you want because someone owes you two month's rent.

              The contract between the tenant and the electricity supplier is nothing to do with the landlord by the way, so not relevant to this conversation.

          • -2

            @Iwantthebestprice: Using home electricity for life support is also nonsense to be clear - there is a reason life support is offered in hospitals. Ever heard of backup generators? You don't put life support on general mains without a backup unless you want people dying from minor outages

              • -1

                @Iwantthebestprice: Theres plenty of residential properties with backup generators, and if you rely on life support equipment you should as well. I for one have a salt water aquarium , and have a back up generator if I was to lose power…….there are literally 100's if not thousands in the aquarium community that do the same.

              • @Iwantthebestprice: How many of those would die shortly without electricity? That was the claim made by the post I'm replying to - that someone's life is in danger from an interruption to mains power…

                If any of them would die with any interruption to the supply of electricity then they should have a backup battery or generator to keep a continuous supply lol. My home has outages overnight all the time

                • @sakurashu: "would die shortly without electricity? That was the claim "

                  No, it wasn't. The claim was "depending on who reside in the house may mean the electricity could be used for life support reasons", a claim expanded on and supported by others.

                  That doesn't mean you are mistaken. It means you are doubling down on pure bullshit to justify proposing an imaginary action that is criminal, offensive, liable to cost the perpetrator a considerable amount to rectify and could in extreme cases possibly lead to a charge of manslaughter.

                  When a person with limited mobility lying on an expensive pump-driven inflatable mattress isn't moved to a new position every 2 hours the area they are lying on will die from lack of blood, and within a few days an ulcer will develop caused by the flesh rotting . Should the mattress itself deflate, this time is cut down to about 20 minutes.

                  They can die from this rotting. They don't die "shortly", they die slowly, agonisingly, and, assuming the actions you support and defend, unnecessarily.

                  • @terrys: I don't and will never encourage someone to cut someone else's power re: "justify proposing an imaginary action". I'm completely against the criminal actions of both the tenant not paying their rent and the trespass/illegal actions of cutting power.

                    Looks like I was wrong in thinking Australia wouldn't be dumb enough to rely on the grid only for people's lives - there are quite a few cases of people dying from outages in SA etc. I think that's pretty sad and should never happen.

                    Even if the claim was "dying shortly without electricity" it looks like that could be true - having someone on the origin medical requirement list etc. doesn't help if power to the premises was locally cut does it?

                    @terrys - I don't hate the poor and sick, I'm just ignorant

                    • @sakurashu: "power to the premises was locally cut"

                      FWIW, our local power authorities can and do get generators out to a *metropolitan" premises within the time-frame of the **UPS* such machinery is connected to - that's the point of such a register.

                      Should there be an emergency such that supply of mobile generators is insufficient or could not be delivered in adequate time, such as happens if simultaneous tornados wipe out 5 major Interstate supply pylons, then provision needs to be made for urgent cases to be moved to hospitals.

                      Other than that, incapacity generally means you are assisted to have a life, not shunted into a "support" pen. It's cheaper in the long run.

                      I was a bit over the top in replying - but plea mitigation in that I have seen the results of inadvertent mismanagement of non-mobile clients and the months of treatment needed to rectify the error.

                      If you have ever fallen asleep with your head on your arm and woken with the arm a little numb or sore, then multiply that by a thousand and you might get the idea…

                • @sakurashu: Don't get sick unless you can afford it?

                  Thanks for that advice. You can now carry on with demanding your local electricity provider sells off the back-up generators and staff they have on hand to supply the power to those on there "medical requirement " list.

                  The resulting saving on your power bill could go to paying the increased taxation required to move all those to the new hospital wards and residences constructed as "Using home electricity for life support is also nonsense to be clear".

                  If you ever manage to leave your isolated bubble and visit our planet you could put your idea forward.

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