PM Gems: When a renter stops paying rent

"We have a wonderful client (investment property owner) who very sadly is terminally ill. To add to their stress, the renter in their investment property stopped paying rent.

After various VCAT hearings due to non payment of rent, we were finally granted possession of the property. This enabled the owners, after 12 months of hardship due to lack of payment whilst also going through health difficulties, to get the property cleaned up for the sale.

They were able to achieve a great result at sale which relieved one of their many stresses: the owner, supported by his family, was able to go through the required treatments.

We were able to achieve a good outcome at tribunal which allowed them to sell the property and move on to alleviate the stress on his family.

We ended up making a donation to the Cure Brain Cancer foundation on the property owner’s behalf to support further research surrounding brain cancers."

Uphold a high level of communication. Even in the hardest of times where things are not going our way, honesty is key with your client. If they understand you are doing your best and working hard to deliver the desired outcome, they will appreciate all that you are doing.

It became quite emotional for me at one point knowing what my client was going through whilst we were waiting for tribunal hearings to get an outcome. Being vulnerable with your client and ensuring they know you care. It makes our job less of a transaction and more of a relationship. We were on the rollercoaster together!

Communicate to your property manager. Communication can go a very, very long way. Rental providers tend to be a lot more understanding when their renters are open and honest about their situation. Unfortunately in this circumstance, the communication was lacking and we were unable to meet a resolution which led to having to seek a possession order.

Often a property manager can facilitate payment plans for rent arrears, or guide the renter to areas where they may be able to access funding or additional support.