Regrettably life has a habit of throwing curveballs and no-one can accurately foresee when this will happen, or the impact that these things can have on our lives. Even the best tenant with a stable job, good income and good habits can fall victim to bad luck. Losing a job, contracting a debilitating illness or falling victim to domestic violence can all be reasons for someone not being able to keep up with their obligation to pay rent on time.
Hardship can be used as grounds to end the Tenancy by either the Landlord or the Tenant, so long as they can convince an Adjudicator on the grounds of the case. It can also be used as a determining factor with matters such as compensation. The adjudicator will make a ruling on excessive hardship based on individual circumstances.
Each case needs to be looked at individually. There is no blanket solution to dealing with these circumstances. No one wants to kick anyone when they are down, and a decision to evict a tenant who is going through a tough time, can be a very difficult decision to make.
To look at this in simple terms, if the mitigating circumstances of the case are such that a tenant or landlord would suffer undue hardship if the agreement were to continue, then an order may be made to end the tenancy.
What action you take is dependent on the set of circumstances. It could be a short term hiccup that can be resolved by implementing a payment plan for un-paid rent for example. However, issues that are more personal and long term like chronic illness or deteriorating family situations are more difficult. As a Landlord you need to pay your bills/mortgage.
Hardship can also apply to landlords if the tenant is in constant arrears and is affecting the ability to meet mortgage repayments, resulting in additional bank fees and interest for deferred mortgage payments.
Having good communication with your tenant/s throughout the tenancy, is a good way of monitoring when things look like they are falling of track. If your property manager is in regular contact with your tenants, keeps on top of rent arrears and undertakes their regular routine inspections, you are less likely to receive an unexpected surprise.
If you would like more information about this topic, feel free to contact our agency and speak with your Property Manager or view on the following link: https://www.rta.qld.gov.au/Renting/Ending-a-tenancy/Ending-a-tenancy-agreement/Excessive-hardship