Tenants paying late rent - options?

Limmortalbjr on 31/10/2016 - 15:11

I own an investment home where the tenant has decided to pay their rent few days late basically every week now at this stage, im surprised if they actually manage to pay it on time. I had a dual key/dual lease home built and I put both tenants on short 3 month terms to see if they could pay ontime and if there was going to be any issues, they managed to for those 3 months, requested 12 month leases and now 1 tenant has decided paying rent on time isnt anything important anymore.

I feel the property manager is inexperienced and doesnt really have much of a clue however ive asked her about it and she says tenants can pay rent late and theres basically nothing she can do until its 8 days late.

Have any other landlords here had this issue before and how did you deal with it, im getting tired of having to check each week if shes paid her rent or when its going to be done. Unfortunately the bank I have my home loan through have stricter rules and im due to pay that thing the same time each week, unlike tenants it seems.

Do I need any special grounds to just give an eviction notice of x amount of days and find a new tenant, id rather have to pay a few extra $ now then have this asshat of a tenant in paying late for the next 12 months almost.

Financial

Comments

  • cypher67 on 31/10/2016 - 15:26

    Given the circumstances you provided, I would just continue to ask nicely and wait for the 12 months to run out before making a call what you want to do, as long as you are getting the money is the most important thing. If you evict, that would end up costing you more money if the house is empty for a period of time, not to mention the headache of it all. Would be easier to find a better property manager.

  • toniyellow on 31/10/2016 - 15:32

    Why are they paying weekly? That sounds time-consuming for both of you. Maybe I've been lucky but I've always paid rent monthly.

  • nivag01 on 31/10/2016 - 15:56

    Call the tenancies in your state to confirm, but I believe there is nothing you
    can do if she is few days late. I doubt changing real estate agents will change it. She probably does her banking on particular day when she has time, its not her fault your bank has stricter conditions. There is no guarantee the next tenant isn't going to do the same.

    • fruit on 31/10/2016 - 18:02

      I don't know of a bank you can't schedule payments, do you?

      • immortalbjr on 31/10/2016 - 19:59
        -1

        Haha exactly. Cant wait till the day we have something fancy like internet banking and we can just login and pay it in about 60 seconds, or even schedule a payment each week.

  • Cheap Charlie on 31/10/2016 - 16:00
    +3

    I am guessing the property in question is located in QLD based on your location in your bio?

    If the property is based in QLD, there is very little the agent or your self can do.
    IMO tenancy law in QLD is heavily favoured towards the tenants.
    Only on the 8th day beyond when the rent is due can the agent issue a form 11, notice to remedy breach notice.
    In the event the tenant pays the rent inside of 7 days of receiving the notice, there is no further action that can be taken.
    In the event the tenant fails to pay the rent inside of the notice period, the agent can issue a form 12, notice to leave.
    In the event the tenant does not voluntarily leave by that date, the agent has to lodge an application with the tenancy authority for the tenant to be evicted.
    This involves a court hearing. There is a good chance an agent will charge you for their time in such a situation.

    Really the only steps you can take unless the tenant breaches the lease is to request them to leave at the end of the lease

  • immortalbjr on 31/10/2016 - 16:08
    -1

    "She probably does her banking on particular day when she has time, its not her fault your bank has stricter conditions."

    Its funny when she was on a 3 month lease to check they could pay rent on time and keep the house clean they managed to do it no problems. After this i'll be keeping tenants on 6 month leases.

    "There is no guarantee the next tenant isn't going to do the same" Correct, but id rather take a chance with a new tenant then continue having a late paying one.

    • nivag01 on 31/10/2016 - 16:40

      maybe her circumstances have changed and she gets paid on a different day? have you never changed jobs that pays you on a different day to the previous one?

      what kind of tenant are trying to attract by offering short term leases and then kicking them out if the don't 'do the right thing' or you think they are 'bad tenant'?

      It will probably end it costing you more in having a vacant property and advertising costs.

      • immortalbjr on 31/10/2016 - 19:57

        "maybe her circumstances have changed and she gets paid on a different day?"

        Since when is that my problem? I have my own family to look after. When she was taken through the house she was explained what amount the rent was and when it was due. When things change thats when you put on your adult shoes and make the changes in your own life, not try pass the responsibility like your landlord is your parent here to hold your hand.

        I might wait till the lease is up and explain my circumstances have changed and I need more rent, I wonder if they'll be as understanding.

  • QW3RTY on 31/10/2016 - 16:16
    +1

    Do I need any special grounds to just give an eviction notice of x amount of days and find a new tenant

    Read the Lease, grounds for termination will be listed.

    she says tenants can pay rent late and there's basically nothing she can do until its 8 days late.

    Here are the rules: https://www.rta.qld.gov.au/Renting/During-a-tenancy/Rent-and…

    id rather have to pay a few extra $ now then have this asshat of a tenant in paying late for the next 12 months almost.

    Unless the tenant breaches Lease and does not remedy under the RTA rules and terms of the Lease — you cannot terminate the Lease.
    There will most likely be a clause for a mutual Termination of the Lease (requiring acceptance by the Lessee), but I doubt she'll bite.

  • fruit on 31/10/2016 - 18:03

    Have any other landlords here had this issue before and how did you deal with it, im getting tired of having to check each week if shes paid her rent or when its going to be done.

    Isn't this the REA's job?

    I wonder if she changed bank or something and the delay is the usual 1-3 days?

    Unfortunately the bank I have my home loan through have stricter rules and im due to pay that thing the same time each week, unlike tenants it seems

    Can you have enough funds in that account a week in advance? So your scheduled payment works and then you can check in 3 days to make sure all tenants have paid.

    I feel your pain, I understand if it was just a once off.

    • Cheap Charlie on 31/10/2016 - 18:31

      Isn't this the REA's job?

      I am guessing you have not had a great deal of experience with Agents? Either that or you were lucky to find one whom is genuinely interested in your interests.
      Rent Rolls are a numbers game.
      You make FA from each client, however if you can pad you rent roll out and invest minimal time into each client/tenant, that is when you make money.

  • Adz81 on 31/10/2016 - 18:40

    I can't speak for Qld, bit in SA, the deck is heavily stacked in the tenants favour.
    I was once subletting from someone (thankfully, my name wasn't on the lease), paying my portion of the rent to them weekly, only to find our that the rent was 3 months in arrears (and I only found this out because I happened to answer the land line once)… despite being 3 months late, the landlord didn't have grounds to terminate the lease, and the original tenant was taken to the tenancy tribunal where she was able to wrangle a payment plan… I'd never be a landlord, people are jerks.

    • immortalbjr on 31/10/2016 - 19:58

      Know what your saying, but at the same time there are decent tenants out there who do the right thing. Problem is as a landlord is theres never any guarantee your getting one.

      • nivag01 on 01/11/2016 - 11:31

        and you think you are going to attract quality tenants by offering a short term lease?

        • immortalbjr on 01/11/2016 - 18:51

          You ever been a landlord? are you going to go out and give a 12 month lease to some family and take the chance they dont really plan on paying rent or looking after the place from week 1.

          Ive always offered a 3 month lease to see if it works for both the tenant and myself, if they were late paying rent they would have been out they know that, so they put in an effort for 3 months ask for a long term lease then turn into lazy shitbags. This is the first tenant to change their attitude once they have a longer term lease. They wont be getting the lease renewed next year anyway.

        • nivag01 on 02/11/2016 - 14:33

          I'm a tenant, i pay rent when i get paid. At the moment it's a few days ahead of when its due. One lease i had it fell due the day before i got paid. Some people pay there bills when they get time on the weekend cause they have a family or work shift work.

          If i'm looking for a rental, the possibility of moving again within 3 months isn't going to appeal to me or my family. Good tenants are often as hard to come by as good landlords.

          I would never be a landlord because of the ongoing costs of maintenance and land tax water/council rates and interest if financed etc is often more then the rental income. The risk of getting a dodgy tenant who doesn't look after the property as if its there own and causes damage intentional or otherwise. Property is only a good investment if structured properly and you have enough of buffer that if for some reason the tenant does pay the rent a day or 2 late it isn't an issue.

        • immortalbjr on 03/11/2016 - 10:37

          @nivag01:

          "Some people pay there bills when they get time on the weekend cause they have a family or work shift work."

          Mate, please. I have a family and work also if your doing anything other than paying your bills/rent on time your making excuses end of story. In our day and age with internet banking and technology theres no excuse to not transfer something on time.

          With the 3 month lease I made it clear to the property manager to let the potential tenant know the 3 month lease is temporary to see if they can actually pay rent on time and keep the house in a reasonable condition then a longer lease will be offered. If paying rent ontime or being able to clean up a house after 3 months is too hard for you your not someone I want applying anyway.

  • snook on 01/11/2016 - 10:42
    +1

    I don't understand why it's such a huge problem for you? You're still getting your rent. If you're cutting it so thin on your own payments then that's your problem.

    I have my tenants pay on the off week of mortgage deductions. Frankly, they are all over the place but their money is always in the bank well before the mortgage payment is due. I don't need it though. I am well buffered.

    • immortalbjr on 01/11/2016 - 18:55

      I am also, its more the principle of paying when its due rather than when its owed to the bank on my part. They were told a figure to be paid each week on the same day, then change their mind once they are on a longer lease and feel they can get away with it.

      I wish I could see the face of some long term tenants who have gone to get a mortgage and try making the payments late on that each week, or see how understanding the bank is if your poor little circumstance changes and you dont want to pay your mortgage when its due anymore because it doesn't suit your lifestyle.

      • snook on 02/11/2016 - 10:39
        +1

        So, you DO have enough money to cover your mortgage payments. I felt from what you had written that this was an issue.

        From other things you wrote it appears the payments are turning up well within 7days. Is this right - late but within 7 days?

        Who cares. They aren't paying a mortgage, they're paying rent. This is a non-issue and you're particularly anal.

        • immortalbjr on 03/11/2016 - 10:59
          -2

          You come across like the typical self entitled younger gen.

          Whether I have the money to cover the mortgage or not isnt the issue or an excuse to not pay rent on time. If you think paying rent or bills late you clearly dont know about responsibility yet, maybe one day when you grow up a little.

          If I was an anal landlord I wouldn't of allowed both tenants to have animals in a brand new house, or allowed both tenants to put in pet doors to make life a bit easier for them. Now they're going to have a fun time next year looking for a new place to live with a cat and probably something on the system saying they cant pay rent on time - but thats not my issue.

        • snook on 03/11/2016 - 14:04

          @immortalbjr: I'm old and have 12 tenants in various places. Some pay on time, some don't, but all are within the week. I couldn't give a rats which day of that week it is.

          I asked you if this was the case for you, as it appeared, but you ignored my question. If it is actually the case, you've got a broom up there.

        • Steptoe on 03/11/2016 - 14:08

          @snook:

          12 tenants

          Ever tried Smashed Avo :p

        • snook on 03/11/2016 - 14:15

          @Steptoe: it's not like this is a new thing

      • [Deactivated] on 03/11/2016 - 10:12

        Have you actually tried speaking to the tenant to discuss this? Perhaps you could adjust the due date for them if it suits better. Something, something mountain, mole hill. I don't think you need to sit there refreshing your netbank every night on rent night, just go sort it out like an adult. Also consider this, if the government gave you a 7 day buffer to pay your mortgage repayments, would you care so much if you paid after the actual due date? Maybe your tenant is a seasoned ozbargainer and wants to milk the maximum interest from their money :).

        • immortalbjr on 03/11/2016 - 10:28

          If the government gave a buffer I would still pay ontime. But the thing is the rental lease doesn't say "Hey matey pay by this day each week.. or if you want just pay when it suits you".

          I guess im one of the rare ones but when I got my first home loan many years ago my father drummed into my head never be as much as a day late or $1 behind on your mortgage (or any loan I guess) so ive always been ahead or paid everything on time.

          Alot of people seem to have the attitude of "its just rent you'll get it when you get it", which hey if it works for you good luck, its a pretty shitty way to live however.

        • [Deactivated] on 03/11/2016 - 12:00

          @immortalbjr: I don't think it's so much that everyone thinks its okay to do that. I think it's more your attitude towards it. Try to remedy the situation and then complain if they don't comply. For all the tenant knows, you haven't said anything and maybe that means you're fine with it (is this ideal? No! Would I do that? No!). Maybe they're bpaying on the due date and not realising it takes 3 days to clear, etc etc. You've basically jumped to the idea of eviction yet you don't even know why this is happening. When you're dealing with other human beings there are a lot of factors you have to account for and I think you could take a more balanced approach. Communication is key - rather than stewing over this for the last few weeks, just have a chat!

          EDIT: also no disrespect to you intended, I just see so many issues which could be resolved if parties communicate. Sure, you have paid a property manager to do this, but as you've mentioned a lot of them don't care and are inexperienced. You're just a source of income for them.

        • immortalbjr on 03/11/2016 - 12:40

          @poop:

          Trust me ive tried to remedy the situation through the property manager for the past 2 months, this is still probably the 7th+ time they're late. Its not a "oh they're late for the 3rd time, time to evict" situation.

          Another investment years ago I ended up getting rid of the property manager as they couldn't even inspect the property every 3 months and I ended up having a great relationship with the tenant and they were never late in 3+ years. I think I might have to do the same here, only difference is now im alot busier and I didnt want to be managing the thing myself.

  • firedragon on 01/11/2016 - 10:55

    Just like any other bill, it should be paid by the due date.

    • immortalbjr on 03/11/2016 - 10:29

      I agree, except some people clearly live lifestyles that would argue that point - somehow.

  • ukulele on 02/11/2016 - 13:56

    In Victoria, you can't do anything until 14days late. These are the risks we take as landlords mate.

    • immortalbjr on 03/11/2016 - 10:33

      Finding that out now. In qld you have 7 days before a notice can be issued, even then they have another 7 days to pay it. 14 days before they can be given a notice to evict. I guess I was just lucky with my last tenant, paid on time every time for 3+ years no problem.

  • Steptoe on 03/11/2016 - 12:00
    +1

    Can you request a direct debit agreement?

  • door999mo on 11/11/2016 - 03:48
    +1

    They were just a few days late and they paid them in full.

    Once you got a really bad tenant like i had before (things in the house started missing or damaged -> complains from neighbours -> no payments for almost 2 months -> police came to my house few times -> refused to leave -> got conflicts and being threatened (the worst part was that i was living with him) -> escalated to police (and of croz they could not do a dam* unless i got beaten or killed) -> almost went to the court -> and finally this a**h*** left -> losing a big sum of money -> worrying to have my house smashed after he left).
    After understanding how bad can tenants be + how hopeless can a landlord be + how stupid the laws are + how useless the polices are.
    Then you will know your tenants are really good.

    As long as they pay the rents + no complains from neighbours + no polices going to your house + not breaking or stealing/selling anything from your house.

    I would suggest you to just let it go.

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