Problem: existing tenant in new property

[SSI]

Hi there,

this seems like a good site, so thought i'd come and look for some advice here.

We've just bought our second investment property. We manage our own properties, and have had no issues so far.

The property was sold to us with a tenant in place, and the agent didn't disclose any issues. the house appeared very clean and well taken care of, and apparently the tenant was reliable, so we decided to purchase the house with the tenant in place. they are paying about 20% below market rent, but we thought it would be an easy transition, and we would increase it in another 6 months or so. thought that would be reasonable.

a day before settlement our lawyer was completing the apportioning of the rent. it came out that the rent was nearly 4 weeks in arrears. when i queried the listing agent about this, he came back with an email from the vendor that he "had missed", stating this was so. Had the agent disclosed this in time, i would have requested vacant possession, and gotten a fresh tenant in, paying market rent.

3x weeks' bond was transferred to my name as new landlord.

we took possession nearly 3 weeks ago, and i still have not seen any rent. i served the tenant with a notice of rent in arrears last week (after he was 2 weeks behind), and i still haven't heard from him. he is not returning my calls.

my questions are (though other advice is appreciated):

• what is the easiest way for me to get the tenant out? 90 days notice in this event seems crazy.
• is the listing agent liable for anything? as a minimum, they have a PM department which i think should sort the issue for me free of charge.
• is this something i should be talking to my insurer about? i imagine the fact that i didnt screen the tenant (as they were already in there) will be a sticking point.

advice is appreciated.

Nick

[Learning]

If you manage your own properties you need to know the rules, at least enough of them to avoid issues like this. Have you followed the rules regarding change of landlord? If so then the second the clock ticks over to 21 days in arrears apply for immediate termination. As per your right under the rules.

[SSI]

yes, have followed the rules re change of landlord. i have also issued 14-day notice last week, yet still no contact.

i cannot find any specific information regarding notice when the rent is 21 days in arrears (other than the point in the tenancy agreement)? is this done through the tenancy tribunal? How long does it take them to issue a termination order?

Nick

[Keys]

If it is periodic. Issue a 90 day notice to terminate. Also, issue a 60 day notice to increase the rent by 30% as it is 20% under market rent.

If it is a fixed term, wait until day 22 then apply for termination.

[SSI]

If it is periodic. Issue a 90 day notice to terminate. Also, issue a 60 day notice to increase the rent by 30% as it is 20% under market rent.

If it is a fixed term, wait until day 22 then apply for termination.

Thanks Keys,

What difference does periodic or fixed-term make to the notice period required from the landlord, particularly when rent is in arrears? surely they should be the same.

the tenancy is periodic. surely there is a way for me to get them vacated quicker than 90 days given the circumstances.

[revdev]

the tenancy is periodic. surely there is a way for me to get them vacated quicker than 90 days given the circumstances.

90 days is your line in the sand. Set this in motion and while you are pursuing other options, it ticks away in the background. Whatever you do, don't give a reason for 90 day notice, as none are required.

[SSI]

Hey, thanks for all the advice.

The listing agency has come to the party and will get their property management arm to look after the issue.

time to find a new tenant and bring the rent back up to market levels.

[FJW]

Hi Nick

Good post, re evicting the tenant given you have served them with a 14 day notice you will be able to get them out under section 55 as the rent is in arrears by 21 days at the time of making the application. You will need to ensure you have the rental statement from the beginning of the tenancy + yours, in addition to the 14 day notice and lease agreement.

My advise is to go around and have a chat to him face to face. When there are serious issues like this communication is often better face to face.

I'm not sure about your second point but if they have deceived you which it sounds like they have then you could have a leg to stand on.

Re your third point, it all depends on the wording of your insurance policy and what they cover. Some policies don't cover rent arrears others do

Hope this helps

[SSI]

Thanks Fraser,

i did manage to catch the tenant last week, when i gave him a 90-day notice to vacate (my fallback position). Got the usual excuses... Its a shame as i feel the guy is genuinely struggling to make ends meet, and the softer side of me doesnt want to kick him out, but i have bills to pay too.

[revdev]

Got the usual excuses... Its a shame as i feel the guy is genuinely struggling to make ends meet, and the softer side of me doesnt want to kick him out, but i have bills to pay too.

Obviously you have to follow through with this, as by backing off now it will only get worse next time...and there will be a next time!
This is why many PI's choose to use PM's as the human contact side can muddy the waters.

Best of luck