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NSW Commercial Law - What to Do When Tenant Doesn't Pay Rent?

Discussion in 'Commercial Law Forum' started by juday, 26 April 2016.

  1. juday

    juday Member

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    Hi,

    I am not knowledgeable with commercial law and property but my parents have a shop that they have rented out to a tenant. It has been 3 or 4 years but the tenant is behind 4 months. My real estate agent doesn't seem to care too much only when my dad informs him to give them a notice to shut down the business. So they end up paying the rent a few days before it can be shut down. My dad is a lenient person which has also lead to this problem now with the rent been way overdue.

    This is not the first time it has happened. The last tenant owed us $50,000 and left. My dad didn't want to bother with the legal fees so we ended up paying for the tenants bills, etc.

    I don't really know what the best option is for us. I honestly just want to the tenant to pay for the overdue rent. We did come to an agreement on how he was going to pay it back but he never stuck to it.

    Is taking him to court the best option? I don't know if I will be able to afford the legal costs. Is there an approximate price range on how much it could cost me?

    I am thinking we should have got commercial landlord insurance, but I guess it's too late for that? I know I should be discussing these things with a lawyer but I am young (but over 18) and don't really understand how the legal system works.
     
  2. Rod

    Rod Well-Known Member

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    NCAT is cheaper and is DIY. Suspect you may end up in court anyway if he refuses to abide by the NCAT ruling but it is a good starting point. Refusing to follow NCAT orders makes the next step at court a little easier as you'd then just be seeking enforcement orders.

    What type of business does the tenant run? Will they be concerned about their stock if they are locked out for non-payment? Arrange a meeting with the agent and express your concerns to them and ask them how they intend to fix the issue. After all, you are paying the agent to manage the tenancy.
     
    juday likes this.
  3. juday

    juday Member

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    Hi Rod,

    The tenants runs an Indian restaurant so I think they would be concerned about their stock been locked away but they have been piling their rubbish up and personal items at the back of the restaurant. It's so disgusting. I have told them numerous of times to clean it up but they won't listen to me, but I think you've given me the courage to try and fix this problem.

    Thanks for your reply. I think I will take your suggestion and speak to the agent, although they don't seem to care.
     

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