All Topics / General Property / SA Tenancy Trubunal, Is it unfair?

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Hello SA property Investors

    I’m doing some research into the South Australian legislation regarding residential tenancies.

    One huge flaw with the legislation currently is that tenants can quite easily get out of a fixed term lease, all they have to do is stop paying rent…
    after 14 days the landlord or pm gives them a form 2 and they have 7 days to vacate or pay.
    Now for someone who was told that they can only sign a 12 month lease and they really only wanted 3 months, that’s a great escape clause for them!!

    On the flip side, if landlords need to get out of a fixed term lease agreement, there is just NO WAY! There is a little blurb in the legislation that states that landlords can get their property back if they can proove undue hardship (ie become homeless and on the street), but I dont know of anyone who has EVER proven this.

    Has anyone here dealt with the tribunal and would like to share some stories.

    I’m building up a case on my website and would like to include some real life stories…

    Please feel free to email me if you dont want to post them here: [email protected]

    Investment Property Management
    http://www.adprop.com.au

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618

    Are you saying the Tribunal is unfair or that the legislation the Tribunal administers has flaws?

    Profile photo of URslaveURslave
    Member
    @urslave
    Join Date: 2005
    Post Count: 5

    It does seem silly and that the tenants have a greater balance of power.

    One thing to check out though, is if they are 14 days behind in rent and you DO evict them in the following 7 days, for a total process of 3 weeks….Could you claim the bond money in lost rent and time delay in finding new tenants?
    If so, you aren’t behind money wise, just worse off for the inconvienience with the possibility of getting better tenants – and a better understanding of the Tribunal system.

    Also I believe that anyone is able to go and sit in on cases presented to the Tenancy Tribunal. So it can be good experience to go and listen to other landlords/tenants disputes, see how the process is managed and what kind of outcomes the Tribunal decides. Benefits being to see if it is a worthwhile option for any future hassles you may have with tenants and to get a better understanding of the rights/responsibilities of both parties.

    Good luck![medieval]

    Do it your way.

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231
    One thing to check out though, is if they are 14 days behind in rent and you DO evict them in the following 7 days, for a total process of 3 weeks….Could you claim the bond money in lost rent and time delay in finding new tenants?
    If so, you aren’t behind money wise, just worse off for the inconvienience with the possibility of getting better tenants – and a better understanding of the Tribunal system.

    Yes, you can claim loss of money from the bond.

    But, they get 7 days to remedy the breach, if they are not out in 7 days, the landlord or pm needs to apply for a tribunal hearing and have them evicted using a baliff. This process nearly always results in loss of money for the landlord as the process takes longer than the amount covered by the bond and there is usually damage done to the property.

    If during the 7 days, they had made a partial payment, you CANNOT apply for a baliff until they are 14 days behind again in their next rent.

    In the industry, there are tenants termed “professional tenants” who know the legislation better than most landlords do. They use this loophole in the law to go from property to property and recieve free rent!!

    I have never had them in any of my own properties or properties that I manage, has anyone had the privelege of experiencing these type of tenants?

    Investment Property Management
    http://www.adprop.com.au

    Profile photo of URslaveURslave
    Member
    @urslave
    Join Date: 2005
    Post Count: 5

    Goes to show all landlords must check the rental histories of potential tenants!
    Is there or could there be a national database of tenants and their rental history, with written submissions from previous landlords?
    Maybe we need to investigate Landlord Insurance for these types of tenants? So landlords can claim back for time lost during Tribunal hearings, getting tenants out and loss of rent. Is this type of insurance available? Is it tax deductable?……..

    Do it your way.

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Hi UR,

    The answer to all your questions is YES!

    There is a national tenant database, I’m not sure if it is available to private landlords, it certainly is to property managers. The one I use is called TICA Default tenancy control.

    You can only list professional tenants IF there has been a financial loss that was not covered by the bond. If the tenants were evicted and the loss of rent was covered by the bond, they cannot be black listed despite putting the landlord through the tribunal process.

    Yes, some landlord insurance policies do cover financial loss by tenants, but again, who wants the hassle???

    Investment Property Management
    http://www.adprop.com.au

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Oh, and because landlord protection insurance is a property related expense, I would say it is tax deductible.

    But, I’m not an accountant!!!

    Investment Property Management
    http://www.adprop.com.au

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.