Arrears & debts - have you involved the tenancy tribunal?

[NESW]

I am getting the feeling that many Landlords, when presented with a situation where they are owed for either rental arrears or some sort of costs from departing tenants, are not following through with an application to the tenancy tribunal.

I may also be wrong, so thought a poll would be handy. Let's see if I can set it up better than my last attempt....

[whitt]

Depends on each case I have been in.

If the tenant was good during tenancy and no damage or have genuine reason then I may let it slide.

Other times if they cause trouble I iwll dig my feet in until I get what I am owed.

[NESW]

Whitt, do you feel that if Folk don't register the event with the TT, that it may cause further problems down the track for the following LL's?

We have had an application submitted for one of our vacancies (via our new PM) and the applicant does have Baycorp issues, however nothing comes up on the TT website.

I wonder if we are not doing each other a dis-service by not listing arrears, even if we never have hope of collecting...

[Keys]

I am getting the feeling that many Landlords, when presented with a situation where they are owed for either rental arrears or some sort of costs from departing tenants, are not following through with an application to the tenancy tribunal.

I may also be wrong, so thought a poll would be handy. Let's see if I can set it up better than my last attempt....

Good idea.

Never let debtors go.

[Glen]

Good idea.

Never let debtors go.

I agree,....but the method in collecting that debt may differ!

[whitt]

Yes I have always understood that not taking things further may mean other LL get a similar issue with same tenant.

Although I blame it on the system we have. My reluctance to pursue is most likely same as other LL. The whole process is not LL friendly and it is too much hassle.

We need our Pia's to lobby us for a fairer system to report bad tenants etc

[NESW]

It will be interesting to see the final results of the survey (well for me anyhow) the way I am seeing it from reading others posts, is that a number of LL's (and PM's) aren't bothering for various reasons.

Yet its a catch 22, if we don't use the system, then how are the authorities to know? Surely we have to provide the "system" with figures so the various property association delegates can be fully armed with numbers for their argument for changing the laws.

I am reminded of the saying, "support the system that supports you", even though its a long way off being of benefit to LL's.... perhaps we need to start somewhere.

Just a thought.....

[Traff]

I am more than happy to submit the details of tenants that have debts owing to me (once i've got the TT order) to a database just to warn other landlords. Chasing the debt thereafter is another thing. Two of the tenants that owe me money are not the type of tenants i really want to chase after considering their previous and current records.

Sharon

[Keys]

We are told.

We are told by statistics that the majority (over 80%?) of applications are made by LL's and the majority of those are for rent arrears.

We learn here (anecdotal) that many don't bother going to the TT.

It follows (?) that the percentage of tenants who should go/do go to the TT as a result of a LL's application is considerably greater.

Are those who don't register the claim doing others a disservice?

For rent arrears, it's simple to prove. A no brainer. Just takes 1/2 a day to do. Think of the grief a non payer will give you if they get in!

To those who don't register a claim. Do you do credit checks? If so, why?

Don't worry about enforcement. Just lodge it with Veda.

[NESW]

Keys I am thinking quite a number don't even bother registering with Veda....

[jporteous]

NZ better than Britian

Yes I have always understood that not taking things further may mean other LL get a similar issue with same tenant.

Although I blame it on the system we have. My reluctance to pursue is most likely same as other LL. The whole process is not LL friendly and it is too much hassle.

We need our Pia's to lobby us for a fairer system to report bad tenants etc

Hi

My in-laws are visiting NZ from Northern Ireland. They are also landlords. I find it very interesting that they believe our laws are light years ahead of Britians. Apparently if you want to remove someone for rent arrears etc it is a real mission.

Personally taking tenants to mediation & TT is annoying but not too big a hassle. Benefits out-weigh hassles. For example, we own blocks of flats & our tenants do talk to each other. We found in the past when we were a bit slack on some longer term tenants with 10 day notices re rent arrears that the "word" would get out and we would suddenly have an "outbreak" with the other tenants getting slack as well. Nothing major just prioritising Saturday Night Drinks to Rent . So we tightened right up & found that the problems dried up.

So now we do Veda checks on all potential tenants. We are also very strict about 10 day notices - even with long-term tenants. We also follow through with Tenancy Mediation & then Tribunal if required. Key is to have at least 3 weeks bond & ensure 10 day notice goes out immediately to get clock ticking. If you go by the book our NZ system is reasonably ok.

Obviously prefer if I could get arrears in one lump sum rather than $10/week but cant see it changing anytime soon .

Jono

[flyernzl]

Fortunately, I've not had great problems in this area.
Had one tenant about 10 years ago that left owing several weeks rent (I was overseas at that time, and did not discover the arrears until I returned). I got all of the bond, and went to the TT for the balance. They found in my favour, of course, but the TT decision is simply proof of debt - a licence to hunt. Actually getting the money is a whole different ballgame.
I flagged the guy with Baycorp, but never got any of the outstanding rent.

[Glenn]

Well I make around 50 applications a year.
The total number of applications in our city is normally around 500.
I account for 3% of the market and all of my tenants have a credit check done on them before we take them on.
Now sure for a number of low grade properties we will take tenants that have moderate bad credit records on Veda.
What about all the landlords and property managers who do not do a credit check. I know which ones dont bother because you can see who has done them in the past when you check on the tenants leaving another property manager / landlord.
You are right many landlords are winging it and crashing in silence when the tenants mess up their nest.
Not many of my proven debtors get away without paying.
Last night I had a veda monitor hit on a missing debtor from two years ago. On Monday morning I will be in at the court house to ask for my pound of flesh.

[NESW]

Good one Glenn!

Do you think Pm's attached to r/e agencies are the worst? I have really had to push to get my stuff put into an application from our departing PM/agency....

[Glenn]

Good one Glenn!

Do you think Pm's attached to r/e agencies are the worst? I have really had to push to get my stuff put into an application from our departing PM/agency....

No I do not think that generally.
Sure a few of the RE people do not like me and others working in their market. But most do not really care about me.
Regardless of what they think about me this is what I think.
My observations are that some firms have branch managers / principles who are focused on selling and appear to not take a close attention to the day to day activities of their management business.
But that is by no means the general case.
Many of the PM's that I come across in RE firms in my city take their job very seriously and do their best.
But they do operate very differently from me.
I get round in dirty jeans and climb in ceilings and under houses. I load stinking rubbish into the trailer and take it to the tip.
But then I earn at least 2 or 3 times if not in fact in some cases 10 times what some of these poor sods earn working in a large team.

Have a read of the article in the August issue of NZP dealing with what looks like an in depth good quality property managment firm called Waikato Real Estate. Here is a firm saying they do not take on bad properties. they have 720 rentals spread around four property managers. That is an average of 180 each. About the same as me. One of the managers says he attends about two mediations a week. Well I make about 50 a year and would be the second highest applicant in our town to the tribunal after HNZ. In another case they have a tenant who is 6 weeks in arrears. That is $1560 in arrear. Now we do not have the priviledge of knowing all the details about that tenancy. We do know that a conditional order was made so my guess is the tenant gradually got to that point due to things happening. My guess is that PM did not issue the 10 day letter and make a tribunal application earlier enough.

What is my point. Well I say here is a good firm saying one thing "we do not deal with low grade properties" yet they have more applications per property than I do and I happily take on difficult properties and difficult tenants. We do not have high rent arrears and on a typical day they have a tenant with 6 weeks arrears
What they tell you is not what actually happens is what I say.
That is common with many RE PM branches. The reason for this is simple. If they told it like it really is it might affect the side of the business that makes the serious money. That is the selling side.
They are not dishonest or imcompetant they simply have a conflict of interest.