Hello all,
Our situation is that we are a settling on a property next week. Currently, it is tenanted but the tenant is in arrears (about 4weeks). I have spoken with the property manager and they have issued a termination notice ending 24th December (to pay up or move out). They have said once this date has passed they will apply to the CTTT for orders to evict the tenant.
What does this mean for us as we will inherit this problem next week. Do we inherit the arrears or is it like a clean slate for the tenant? When they leave will the bond be used to pay the previous owners?
Any advice/information would be very helpful and appreciated.
The Property Manager could have applied to the CTTT when they delivered the eviction notice. They don't have to wait until the 24th and the CTTT application can be withdrawn if the rent arrears are paid up. They should also be working with you regarding a new Managing Agency Agreement and putting in the correct forms to transfer the rental bond. If it were me I'd be having a close look at the competency of this Property Manager.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
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The PM is still working for the vendor and the vendor is cutting their losses by not spending more money to evict the tenant which is of no benefit to them.
Yes the application can be lodged with Consumer Claims Tribunal but it would be post settlement & their care factor is zero.
If the tenant doesn’t vacate then you’re left carrying the can for the application & losses going forward.
Appreciate the feedback.
Paul – they are lodging the bond transfer forms and working with us on a new agreement. I've spoken with the PM a few times and she doesn't seem incompetent just going on what the current owners are saying she do. I will however tell her to lodge with the CTTT as soon as we settle and the property is ours.
Scott No Mates – that's what I thought but was hoping there might be some loophole that someone knew about that would benefit us in this situation.
Any chance you can get vacant possession and remove the problem entirely?
Probably too late now but maybe next time.
Hi Ygue6072,
I would say that it is very tricky situation here. If in agreement it says that you are receiving vacant property there should be a sunny side of it. Usually it might take a lot more longer than 4 weeks to get tenants out of property. In this case I would suggest not to complete on deal before property in empty or if it is too late – agree on seller to pay you arrears that has been caused because of tenants still living in property.
Good luck on this and be persistent.
Thanks Derek and PrimePropertyInvestor,
Unfortunately we didn't ask for vacant possession, but this is certainly good to know for next time. We will just fight it out through the CTTT which might be troublesome but better learn this lesson now and know better for next time.
Thanks all.
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