Lodge City Rentals property managers win major rental arrears court case

When a tenant held back $9000 in rent payments, Lodge City Rentals property managers Kate Taylor and Samantha Moore were called to help clean up the mess.

The background

As Lodge City Rentals property managers, Kate Taylor and Samantha Moore undertake a rigorous tenant application process to ensure the right quality tenants are selected for their landlords’ homes. But when they inherited tenants selected by a landlord they also inherited a challenging situation of rent arrears.

 “We took a call from a distressed property owner who didn’t know where to turn,” said Kate. “She had four student tenants who weren’t paying rent and it quickly became evident that one tenant was taking advantage of her. When we took over the management of the property there was approximately $9000 in rent owing.”

The challenge

There were four people living at the property, and four names on the tenancy agreement, but only one tenant had signed it. Three tenants were paying rent, but the fourth signee was pocketing the money and giving the landlord a constant stream of excuses about the payment delays.

“She just wanted them gone, and her money paid, so we worked through the process of getting in touch with the tenants, then making court applications,” explained Samantha.

“When we went to court, the tenant who was pocketing the funds no longer lived in Hamilton, so had to be at the hearing via phone, and another tenant had travelled from Napier,” said Sam. “It was a bit of work to get everyone in the same place at the same time but we managed it!

“One of the tenants decided at the first hearing he wanted legal representation. This meant the first case was adjourned and we had to go back a second time.”

The outcome

Kate and Samantha helped end the tenancy. Then after two court hearings the money started trickling in. The whole process took nine weeks and the deafulting tenant has so far paid back $5,000 of the debt at $100 a week – under court order.

“In most instances, as property managers we can sort these things out before they get to court, but this had gone too far and there were too many people involved,” said Kate.

“The owner was delighted with the job we did and as a result, has us managing four more of her properties. She realised it was easier to have them taken care of, and she definitely won’t get into this situation again.”

"The owner was delighted with the job we did and as a result, has us managing four more of her properties."

 

Kate Taylor

P: 07 856 4500

M: 027 531 5008

E: katet@lodge.co.nz

www.lodgerentals.co.nz

 

Samantha Moore

P: 07 856 4500

M: 021 9611 692

E: samantham@lodge.co.nz

www.lodgerentals.co.nz

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