Advice on Rent Arrears/Eviction

[AndrewWLG]

Hey, totally new to being a landlord in NZ and just figured I'd run my current situation past you guys just in case you had any advice.


Basically we bought a Mortgagee Sale property, with the intention to move into it. The rental tenants that came with the property seemed reasonably OK, and they said they needed some time to look for a new place. We were in no huge hurry, so we gave them 3 months notice to move out (the usual 90 day process)

Now it's been a month and a bit, and they've stopped paying rent. As of last week they got up to 21 days in Arrears, and are not answering phone calls from the property manager. When they were briefly answering calls, the PM told them they should move out ASAP to avoid further debt. But they refused and said they'd get the money. We've not been able to contact since then (~2wk ago)

Last thursday we got our property manager to put through a tenancy tribunal application. I'm informed that the turnaround for Lower Hutt court is usually about 3 weeks. And that even after that, if they don't leave when ordered to, we'll need to wait even longer for a bailiff. Knowing these tenants I'd say that's pretty likely. (also considering I recently checked the TT records, and it turns out this isn't the first time they've been to TT for rent arrears)


Is there anything more we can do beside wait? It's getting pretty painful on the ol' wallet paying for both the rent on where I live, and the mortgage on a place with non-paying tenants.

[spaceman]

There's heaps of things you can do to get them out, but you seem to have covered most of the legal methods.

I'd suggest fronting up and offering them cash in the hand if they get out.....eg...get out by friday COB and I'll give you $3k as you drive away .....or something like that.

If they don't want to leave, even the bailiff won't be able to help much....not that I've first hand knowledge, just stories.

Good luck

Cheers
spaceman.

[AndrewWLG]

Yeah, I figured that might be the case. Looks like I'm in for an interesting ride here.

Not sure the budget quite stretches to paying them off, although it doesn't stretch to months of unpaid rent either, so there is that.

Eeesh, hopefully it doesn't come down to the bailiff not being able to do anything about it either, that'd be a pretty shitty situation!

Thanks for your advice

[Keys]

(also considering I recently checked the TT records, and it turns out this isn't the first time they've been to TT for rent arrears)

This is such a basic as a landlord that I'm surprised that your PM didn't check.

[AndrewWLG]

Yeah, we didn't check until after we'd bought the place, and the PM didn't check, I assume, because we just were getting them to manage it for 3 months until the tenants left.

And we were stuck with them anyhow once we bought the place. If I was renting out to new tenants I'd totally be checking that, and there is no way I'd have rented to these guys.

So yes, I realize that's an obvious thing to check when screening tenants, but we didn't get a choice here. If we wanted the house (which was a very good deal indeed) we had to take these tenants with it.

[Cassandra]

"I'm informed that the turnaround for Lower Hutt court is usually about 3 weeks"

I made an application on the 10th June and have a hearing scheduled at Lower Hutt on the 23rd June . 10 working days (inclusive)

[AndrewWLG]

"I'm informed that the turnaround for Lower Hutt court is usually about 3 weeks"

I made an application on the 10th June and have a hearing scheduled at Lower Hutt on the 23rd June . 10 working days (inclusive)

Oh man, that's really quick actually. Considering I applied on the 11th, that should mean it's reasonably soon after yours I'd imagine.

Maybe the Tenancy Tribunal guys were just trying to keep my expectations low when they said 3 weeks

[Cassandra]

Oh man, that's really quick actually. Considering I applied on the 11th, that should mean it's reasonably soon after yours I'd imagine.

Maybe the Tenancy Tribunal guys were just trying to keep my expectations low when they said 3 weeks

I received the hearing advice by e-mail this morning

Good luck !

[AndrewWLG]

Good luck !

Thanks! Hopefully now that the tenants are like 5 weeks behind and not answering calls the tribunal will side with me

[klauster]

What role did your PM play?

[AndrewWLG]

Originally just managing the place, now Taking over all the stuff I really can't be bothered doing (calling tenants to try and get rent out of them, doing tenancy tribunal process etc)

[Maccachic]

Originally just managing the place, now Taking over all the stuff I really can't be bothered doing (calling tenants to try and get rent out of them, doing tenancy tribunal process etc)

So if you didn't expect them to do the latter until recently what were you expecting you were paying them for?

[AndrewWLG]

So if you didn't expect them to do the latter until recently what were you expecting you were paying them for?

And I mean they've been dealing with the non-paying situation ever since it started happening, sorry my wording was unclear there.


Mostly just because I didn't feel like learning to be a landlord for 3 months, and there were a few maintenance requests and stuff to handle, plus making sure they leave at the end of the notice period etc.

Basically I just wanted to let it be someone else's worry more than my, as right now I'm moving my business into a new office, hiring staff etc. and don't really want more stuff to stress about.

They're doing a really good job, considering the situation, and they're totally worth the 8% or so they charge.


Anyway, that's not the point.. the point was if there was anything else that could help deal with the current situation. But it sounds like the tribunal will be quite quick anyhow, so no worries.

[Katrinashaw]

Given the fact that the tenant has breached section 40.1.a of the residential tenancy act unless the tenant is able to prove to the tribunal undue hardship or something the tribunal should be able to end the contract within 7 days due to breach.
Good luck

[Cassandra]

Given the fact that the tenant has breached section 40.1.a of the residential tenancy act unless the tenant is able to prove to the tribunal undue hardship or something the tribunal should be able to end the contract within 7 days due to breach.
Good luck

"Proof of hardship" at Tribunal ? No contest - "bring out the big guns" Termination is justified as breaches of sections 55 (more than 21 days arrears) and 56 (14 day notice issued and failure to remedy within that time)