What would you do?

[Anthonyacat]

I've got a tenant in Rotorua who missed her rent over the Xmas/NY period. Multiple efforts by the PM to retrieve it have failed. The tenant does not respond to communication, and has either not been present or literally ran away (jumped the back fence) when my PM arrives for booked inspections.

Some time later my PM issued a 90 day notice, been through the tribunal, got possession of the property, but the tenant has not moved out.

The weird thing is, she's been paying her rent on time since, plus an extra $5, so the arrears are slowly dropping; less than a week's rent remains overdue.

If she'd just talk to us, we could have sorted this out. I understand things can get tight at the end of the year, and if she'd come to us before missing a payment and let us know it'd be no problem. Wouldn't have been hard, I was there a week earlier to deliver the Xmas present.

My PM says:

She keeps the house reasonably clean and tidy, bit messy but there is never damage and I have never had to go back to do a re-inspection. Arrears are $215 so in the scheme of things it’s not a lot of arrears it’s just she isn’t making any contact, nor can I reach her to discuss this. She keeps paying without fail (since Feb), $300 per week, I can admit I have never had this situation before so I am not sure what to do.

What should I do? What would you do?

[Wayne]

A very odd one - some issues there.
Need to be able to talk it through with her - sounds like she has had a bad experiance along the way.

[Nick G]

If the PM inspections are fine then I'd leave a friendly note saying just what you have and that you're looking for a way to keep her living there not the other way around... and asking to please contact the PM to catch up.

Good on you for starting with empathy. At some point that will leave you holding the can but it's better to trust but verify rather than mistrust and justify.

[Bobsyouruncle]

You have a high likelihood of being here again. If you have the ability to get them out do it.

[Anthonyacat]

Good on you for starting with empathy. At some point that will leave you holding the can but it's better to trust but verify rather than mistrust and justify.

I've already been left with the can a few years back. Not the end of the world, but more than $3k in arrears, plus bailiff/lockchange costs. Tenant repeatedly lied about payments, dragged it out, I gave him the benefit of the doubt twice when I shouldn't have. Several years later he's just popped back up on the WINZ list, so we're extracting $30 a week from him via one of the debt collection agencies. He'll pay every cent, even if I only end up getting 50% of it.

[jmsnz]

Good on you for starting with empathy. At some point that will leave you holding the can but it's better to trust but verify rather than mistrust and justify.

I've already been left with the can a few years back. Not the end of the world, but more than $3k in arrears, plus bailiff/lockchange costs. Tenant repeatedly lied about payments, dragged it out, I gave him the benefit of the doubt twice when I shouldn't have. Several years later he's just popped back up on the WINZ list, so we're extracting $30 a week from him via one of the debt collection agencies. He'll pay every cent, even if I only end up getting 50% of it.

Why are you a landlord? If it is just a commercial arrangement to you then Bob is likely right, it will happen again and so time to move them on.

If it is more than just a commercial arrangement, then Nick's approach is right. I think that sometimes we forget that for most of us here we are very fortunate:
- We are (relatively) well off
- We are (relatively) well educated
- We have (relatively) good social and communication skills to deal with problems
- We don't live with the day-to-day stresses that those less fortunate than us do

I would suggest that it is a rare event that a tenant voluntarily tries to make good, regardless of how small an amount. I have no idea of the quality/target market of the property but you can't assume you won't get a worse rogue!

All of that said, Bob's approach is the safe one.

[Keys]

Leave the tenant in there. For 90 days following the termination of the tenancy you can get them tossed out as they are in the limbo period. Each week which passes reduces the debt they owe to you. Your PM should know what to do though.

[Learning]

Where do you stand legally? You haven't taken position and she's still paying rent so does that make her a squatter, tenant, trespasser or something else? Have you now left it so long your options have been drastically limited?

[Anthonyacat]

We've only been given possession by the courts a week or so ago, so options still seem open.

As for Keys' comment on the debt, it's true it reduces each week they pay, but there's always the risk they won't and the arrears will increase. We do have 3 or 4 weeks bond though, so the risk is minimised.

Jmsnz makes an excellent point. My motivations for being a landlord are primarily financial, but I do also enjoy providing quality accommodation to my tenants, who I care for; at least until they give me reason not to. She hasn't quite given me reason not to yet, though the hiding and running is very annoying.

[Frezzinghot]

I've got a tenant in Rotorua who missed her rent over the Xmas/NY period.

let me guess, they spent it on holidays and presents?

FH

[Frezzinghot]

We have found that when payments start getting missed, there is usually a deeper reason for it and usually is a warning sign of things to come. I would either get to the bottom of the matter now and offer no 2nd chances for them. It almost never works out in your favour!

FH

[Perry]

My motivations for being a landlord are primarily financial, but I do also enjoy providing quality accommodation to my tenants, who I care for; at least until they give me reason not to. She hasn't quite given me reason not to yet, though the hiding and running is very annoying.

I commend you on your empathy, Anthony. Your approach / philosophy is one I try to follow, too.

It is often said that there is no room for sentiment in business. I disagree, but accept that discretion is necessary.

But like others here - and your PM - this is a weird one. Is it too far away for you to knock on the door, unannounced, one day, and ask to chat?

48 Landlord’s right of entry
(1) The landlord shall not enter the premises during the currency of the tenancy agreement, except—
(a) with the consent of the tenant freely given at, or immediately before, the time of entry;

[Wayne]

But like others here - and your PM - this is a weird one. Is it too far away for you to knock on the door, unannounced, one day, and ask to chat?

I think that's what's needed but like the letter idea.
Explain that you want to help and understanding their situation is part of that.

Business is business but we do all like to hear the stories where a business has gone above and beyond and treated a person like a real person.
Think airlines when they follow the hard rule and charge to change tickets verses the time they waive that fee because of the circumstances.

[Anthonyacat]

It is too far to just call in - I'll be heading through Rotorua some time in the next couple months, but want to get this sorted soon.

My PM has previously tried the turn up unannounced idea, with no luck.

I've just had word from her that she's got hold of the tenant's family, so there might be some ground to be gained there. Hopefully a message can be passed through.

Thanks all for your comments - if anyone has anything further to add, it's appreciated.

[ripeka]

She hasn't quite given me reason not to yet, though the hiding and running is very annoying.

I am wondering whether this is a cultural thing (is your tenant perhaps an islander or Maori?). Where a person has high personal ethics, they may feel shame at having missed that payment, and a LOT of personal embarrassment; hence the running away and avoidance. Other cultures do deal and react to shame in very different ways. Just a thought.

Otherwise, perhaps its fear that the knock on the door is going to be about an eviction?

It does seem that the person is trying to make up the shortfall albeit rather slowly! A tricky one...