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  • Tenant about to go into rent arrears

    I contacted our new tenant (who is paid monthly) to confirm when her rent payment, that is due this week, will be made. She initially paid 3 weeks (by choice, presumably to take her through to her next pay day) when she moved in, which takes her up to tomorrow.

    She replied that she paid 3 weeks initially and will pay 5 weeks at the end of next week to cover her rent for the following month. She may genuinely think the rent already paid will cover up to next week, so I will make it clear what periods were covered with the initial rent.

    She is from all accounts very nice, has excellent references and employment, not a bad thing to be found against her name.

    As part of my response I will make clear that 5 weeks is not required, but rather rent must in advance at all times (eg not 2 weeks behind, 2 weeks in advance etc).

    I want to maintain a positive landlord/tenant relationship but also cover myself if things turn to custard. Would a schedule showing when rent is due and the periods cover be a better initial approach, or would a 14 day notice once the rent becomes overdue, be more effective? I don't want to seem unreasonable yet I want to ensure she is clear about her obligations and the consequences if not met.

    Our last tenant stayed for 7 years with no rent issues, so this is a first. Thoughts from those more experienced would be appreciated.

    Thanks
    Phi

  • #2
    Wait until (if) the reforms come to pass. Then you will go to writing every time something happens.

    www.3888444.co.nz
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    • #3
      If I recall Keys' past comments correctly, a LL cannot require it, but a tenant can voluntarily pay more in advance than is legislated for. That's despite section 11.

      (Have I got that right, Keys?)

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      • #4
        You have Perry. Requiring is totally different than offering.

        www.3888444.co.nz
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        • #5
          Hi Phi
          I am presuming you have a Tenancy Agreement.

          Did your Tenancy Agreement, signed by both, stipulate 2-weeks in advance? Or was there a discussion around variance at the time?

          If no discussion, then keep it simple - politely remind tenant of the TA and how they deal with it is their concern, not yours.

          Be firm from the outset or it may well turn to custard.

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          • #6
            Yes there is a TA signed by both parties. The rent in advance I presume is so the tenant can make one payment when they're paid monthly to take them though to their next pay. Its up to them if that suits but only one week in advance is required. My initial concern was getting into arrears so soon after moving in, whether a 14 day notice was the best approach as the tenant had advised they would be paying several weeks (at which point they would be 2 weeks behind).

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            • #7
              Originally posted by Phi View Post
              Yes there is a TA signed by both parties. The rent in advance I presume is so the tenant can make one payment when they're paid monthly to take them though to their next pay. Its up to them if that suits but only one week in advance is required. My initial concern was getting into arrears so soon after moving in, whether a 14 day notice was the best approach as the tenant had advised they would be paying several weeks (at which point they would be 2 weeks behind).
              So has tenant paid rent now? It was due 6 Sept? If so, all squared up?

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              • #8
                There is often a bit of to-ing and fro-ing at the start of a tenancy. Have found it common for issues to be raised by new tenants, sometimes needing to be sorted, sometimes not.

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                • #9
                  Originally posted by erinak View Post
                  So has tenant paid rent now? It was due 6 Sept? If so, all squared up?
                  No. Yes. No.

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                  • #10
                    Originally posted by Phi View Post
                    No. Yes. No.
                    In that case I would contact her verbally and explain the lay of the land again, confirm that she understands, and follow that up with a 14-day notice in writing - by email is fine.

                    It worked for me and they paid on the correct due date after that and were model tenants I'm pleased to report.

                    I hope it works out for you too.

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                    • #11
                      I wouldn't start off with a 14 day notice if her attitude is what you say it is.

                      I would be more inclined to do what you suggested by presenting her with a rent schedule which shows what date she is paid up to and when you expect it to be paid again. If she doesn't honor it then I would give her a 14 day notice.
                      Fraser Wilkinson
                      www.managemyrental.co.nz
                      Wellington / Lower Hutt / Upper Hutt / Porirua

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