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Topic
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My tenant has been renting my apartment for two years.
He entered into a new contract late last month on the same date he cancelled his bank payments.
My understanding is he was terminated from his job on the 19th March 2020 and he has informed my Agent that he has less than $2000 in the bank.
As no money exchanged hands and he had no intention to pay the rent I believe this could be a fradulent act.
I fully understand that a tenant can not be evicted in this climate but I dont believe he is now a tenant but a squatter.
Am I correct?
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Do you have an agent managing your property? If so make them earn their money and deal with the matter at hand.
If you’re self managing the property then you now realise the value of a good property manager. Seek immediate legal advice. If you get anything wrong now it will only exacerbate the problem.
Here’s what the Fair Trading website says:
Where a household is struggling to make rental payments and has suffered a loss of income equal to or greater than 25 per cent due to COVID-19, there is a new obligation to enter into negotiations with their landlord or managing agent, prior to seeking a forced end to the tenancy.
Tenants will be protected from eviction until NCAT is satisfied that negotiations have concluded. Any unpaid rent will accrue as arrears during this period.
So your tenant isn’t squatting, they’re just racking up rent arrears. It would be as much in their interest as yours to negotiate and, if that fails, attend mediation at Fair Trading.
Maybe then they can explain why they signed a lease that they knew they wouldn’t be able to service.
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