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Recovering money owed from ex Tenants

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  • Recovering money owed from ex Tenants


    We have a commercial property and the tenant has just moved out. Unfortunately, there were issues with late rent payments and by the time we got them out all their bond had been used to pay outstanding rent. Does anyone know if we can use the District Court disputes tribunal to recover rent from a commercial tenant? Hoping that it is fairly straight forward and that we don't need to use lawyers as we did have a make good clause in our lease and just need to recover the costs of damage to the property and the make good. Are currently in the process of getting quotes for the work that needs to be done.


  • #2
    You can only use the disputes tribunal if they dispute the bill. you can't use it for plain undisputed debt collection.

    I guess with a bill for damage and make good, there's a good chance they will dispute the figures.


    • #3
      Thanks One!


      • #4
        Add a fee for managing the account, pursuing arrears and administering non-payment, and charge all interest possible. If it will affect them, threaten to list it on their credit record.

        Try everything possible to get the money collected yourself initially. You can always credit the admin fee &/or interest if they pay quickly.

        NB We have tried 5 different debt collectors in the past 5 years, and none were as effective as doing it ourselves.

        It is expensive & time consuming to go through the courts, we have just spent $4,000 to recover a $60,000 debt and are unlikely to see much for it.

        Good luck.


        • #5

          Thanks for the advice. In relation to the fee for managing the account, would you just add that on as a percentage or flat fee. I must admit we never even thought of this.



          • #6
            Depending on how much time, hassle & stress they have caused, and the amount of the debt. For a $5,000 debt, probably $250 - $450+GST, for a 50,000 debt possibly $1250. It's not a lot but it feels good.

            If they have had you running around wasting time and not stuck to mulitple agreements to pay, charge more.

            Clause 29.1 5th edition lease
            Last edited by Tan; 26-10-2011, 10:25 AM. Reason: Added clause info