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Discover How the Wrong Tenant Can Cost You A Fortune

 

We know it’s frustrating when your property has been vacant for weeks or months. Finally, a tenant comes along however something just doesn’t feel quite right. However, you’ve been sacrificing to cover the mortgage and you just want this all to be over so against your better judgment, you take the tenant.

Or worse yet, your property manager encouraged you to do so….

We know how tempting it can be but the above scenario will only end up costing you a fortune and we know from experience that it’s just not worth the risk as once you have signed a lease with a tenant, it is VERY difficult to evict them if things are not going smoothly.

 

What Are Your Rights?

Your tenancy agreement is basically a contract between a landlord and a tenant, outlining each person’s rights and responsibilities in relation to the property. For example, the tenant agrees by signing the document to pay x amount of rent each week and the landlord agrees to conduct maintenance in a timely manner (among many other things!)

If your tenant is in breach of their lease (i.e. they are not meeting the conditions of their tenancy agreement), we can issue them with Form 11 Notice to Remedy Breach. This allows the tenant seven days to rectify the issue.

If the tenant does not rectify the problem within seven days, then there are several options depending on the seriousness of how the tenant “breached” the rental agreement.

 

1) Serious Breaches

Examples of serious breaches include rent arrears and unlawful use of the property.

If your breach is considered ‘serious’, you may immediately apply to the small claims tribunal to have them evicted however, there is no guaranteed outcome. Be prepared to wait another 2-4 week to appear in court.

If there is an error with your documentation (i.e. the Notice to Remedy Breach form was delivered via email and “correspondence via email” was not approved on their lease agreement) – denied!

If the tenant has a sad, convincing story and the judge feels sorry for them – denied!

 

Even if you are successful at the tribunal, you are most likely going to have to wait another 2 weeks for the actual eviction date to arrive.

Then, if the tenants don’t leave when they’re supposed to leave, you should then be prepared to wait a few more weeks to go back to court and seek an order for ‘vacant possession’ from the tribunal because the tenant hasn’t complied with the original order to vacate the property.

In the above scenario, you may be waiting anywhere from two weeks to several months to reclaim possession of your property. The tribunal process can be costly, time-consuming and stressful … All the while you haven’t received rent and are unaware of potential damage to your property.

 

2) Non-Serious Breaches

Examples of non-serious breaches include not keeping the property clean and in good condition and having an unapproved pet at the property

For a non-serious breach, if the tenant hasn’t rectified the issue and the seven day Notice to Remedy Breach has expired you cannot go straight to court to get them out.

You must issue another Notice to Remedy Breach and wait another week. Then, if the tenant still has not rectified the issue, you can apply to the tribunal. However, because it’s not urgent, be prepared to wait another 4-8 weeks for your case to be heard.

You may also want to expect to be rejected. We have had a personal experience of trying to evict a tenant who had not remedied 8 breaches for not cleaning and have their dog inside and the judge advised that the situation was not serious enough to remove someone from their home.

Meanwhile, the house is filthy and the wear and tear is mounting by the day.

What If You Eventually Get Them Out?

If you do manage to evict your bad tenant, be prepared to spend time and money getting your property back up to scratch and ready to appeal to a new tenant because, if someone has been evicted for failing to meet the obligations of their lease, it’s very unlikely they have upheld their other obligations when leaving the property.

You will now also need to wait for a new tenant which means more lost rent, as well as more advertising and letting fees for finding a new tenant.

In summary, you’ve experience weeks of lost rent, your property may be dirty and damaged in some way and you haven’t had a good night’s sleep in months. That’s how bad tenants can cost you a fortune.

This situation can be avoided by knowing how to identify a good tenant and having a strict policy in place during the application process to filter out any potential bad tenants.

 


If you liked our information and advice and want to know more or would like to talk to us about how we can help you get the best return on your investment possible, give us a call or send us a message! We’d love to hear from you.

Don’t forget! If you have a friend or family who may be interested, refer them through to us! If they become and an Excellent Owner, we will give you $200 cash!

Phone: (07) 4408 8062

Email: elley@excellencepm.com.au

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Discover How the Wrong Tenant Can Cost You A Fortune