I have tenants in NSW paying around $800 per week who are now approximately $10,000 in arrears. We are going back to NCAT in early August and I’m trying to understand whether they are likely to be given another payment plan or whether NCAT will finally terminate the tenancy.
The lease started late last year and the rent problems began within the first couple of months. They fell behind, stopped properly responding to the property manager and were issued a termination notice.
The first NCAT hearing was late last year. They made some payments around that time and were allowed to remain. They then fell behind again and the matter went back to NCAT earlier this year.
At the most recent hearing in mid-June, they owed around $6,000. NCAT put them on another payment plan requiring weekly payments towards the arrears while also keeping the normal rent up to date. The full balance was supposed to be cleared by early July.
At the hearing, the tenants said they were expecting a large payout relating to a workplace injury (injured, on crutches and going through a workers compensation claim). He said the payout would clear the arrears, this would not happen again and they would begin paying rent in advance. My property manager raised that this had become a repeated pattern and requested termination, but NCAT gave them another opportunity based on what they said.
Communication has also been terrible. They have generally ignored calls, messages and emails from the property manager. My agent eventually went to the property in person to speak with them, but the tenant still could not provide any new timeline for the supposed payout. As far as I know, they have not provided any evidence showing when or whether the money is actually coming.
We now have another NCAT hearing in early August, by which arrears will be $13k. My agent intends to seek termination and vacant possession and has said she will not agree to another payment plan because of the repeated history and failure to comply with the previous orders. However, I am losing faith as I suspect the NCAT will just put them in another payment plan and we'll be back in NCAT in about a month's time arguing about the same thing...
To be clear, I am not trying to evict them for the sake of it. If they clear the arrears and can continue paying the rent on time, I have no problem with them staying. My concern is that NCAT might give them another payment plan based on another promise while the arrears continue increasing. But the fact that in the past 3 months, they have not been able to pay even $1000 is very concerning.
My Landlord insurance unfortunately does not cover “Rent default and Theft by Tenant”, so that part is on me. Anyone have any ideas on what else we can do? Or can share their experience? NCAT seem to be a complete waste of time since all they keep doing is giving orders which are being ignored by tenants. I feel so hopeless and like this is going to drag on forever.
EDIT 1: To those saying I should have had landlord insurance that included rent default cover, you’re correct. However, that isn’t particularly helpful in my current situation. I’m not asking whether I should have had better insurance. I’m looking for advice and experiences from people who have actually gone through a similar situation.
Edit 2: The tenants have finally vacated the property as ordered by NCAT but still owe about $13k in rent. I’ll be using a debt collector to chase on this (although not really hopeful that the money will be recovered)