Posts Tagged ‘Tenant Eviction’

Rental arrears are a major problem for landlords and property managers, with difficult tenants that refuse to pay their rent or consistently don’t pay their rent on time.

Monika Bonet – Principal of Raine & Horne Glenelg said “We just don’t have this problem with rental arrears, this is not a problem in our Property Management business. Basically we have eliminated rental arrears through our strict tenant selection processes, and our rigorous “ZERO TOLERANCE POLICY” with regard to rental arrears.

“Over the years we’ve experienced difficult tenants that don’t pay their rent on time, can come from any walk of life. The truth is there is no guarantee that a tenant’s personal circumstances may change and they will stop paying their rent on time.”

Monika went on to explain; “To combat this problem, we have implemented a tough ZERO TOLERANCE POLICY with respect to rental arrears. The way it works is;

• same day overdue – an sms alert is sent to the tenant that rent failed to be collected.

• 1 day overdue – a phonecall and sms is made to the tenant to recover the rent. If un-contactable, a first letter is sent to the tenant.
  
• 3 days overdue – a second phonecall and sms is made to the tenant to recover rent. If un-contactable, a second letter is sent to the tenant.
• 5 days overdue – a third reminder letter is sent and a sms and telephone call is made. This is followed up with a personal visit to the tenant at the property.
• 10 days overdue – a Form 2 (Notice by Landlord to Tenant to remedy Breach of Agreement – Notice of Termination) is sent to the Tenant, stating that if the rent is not paid within 5 days, a termination notice will be issued. This is followed up with another personal visit to the tenant.

• 15 days overdue – a Form 7 “Application to the Residential Tenancies Tribunal” is served with the Residential Tenancies for payment of rent soa tribunal hearing can be scheduled.

“The circumstances of the hearing will dictate the outcome of the hearing. If the tenant attends the tribunal hearing and still wants to stay in the property, a payment plan will be put in place to rectify the arrears. But if the tenant then doesn’t pay or misses a payment, a Form 7 is lodged with the tribunal again, seeking vacant possession” says Monika.

Monika explained; “I have had these eviction cases, where the tribunal will then state a date and time when the bailiff will attend the property to evict the tenant. And I can say I have been there standing on the footpath with my locksmith to take possession of the property whilst the bailiff evicts the rent defaulting tenant. It is not a very pleasant experience, but it has to be done when you have difficult tenants who just refuse to pay their rent.”

“You will then witness your homeless ‘non-rent-paying’ tenant with all of their possessions on the footpath, and al-the-while protesting with abuse for all to hear”.

“We have generally found that tenants can’t hide from our ZERO TOLERANCE procedures, and they will either pay the rent or vacate before the Form 2 is issued.”

“Throughout this process we communicate with our Landlords and a Form 7 seeking vacant possession will never be issued without discussing the situation with our Landlord’s first.”

Monika Bonet is the Principal of Raine & Horne Glenelg. Raine and Horne Glenelg are Glenelg Real Estate Agents and Property Management experts.Should you have any need for Property Management services call Raine & Horne Glenelg on 8376 8844

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