Dealing with late rental payments
Late rental payments happen. Every property management company has to deal with them. While some tenants will occasionally be late, others will routinely be late and can be problematic at times. So how do you deal with late rental payments?
In the case of a tenant who is occasionally late, a friendly reminder is often enough. Most tenants will be upfront with us and let us know that the payment will be late. Its important to make a note of when it will be paid and follow up if necessary.
Ideally, owners should have enough funds set aside to cover any property mortgages that may be due if there is a shortfall in rent. Most tenants pay fortnightly, with owners receiving this from their property manager at the end of the month; some agents, such as Rentwest Solutions, also pay owners mid-month.
Even when you become frustrated and discouraged with a tenant, it is best to remain professional. If you make threats or try to intimidate them for payment, things could turn ugly, with it becoming harder to reach a resolution.
If a person is habitually late, we encourage them to pay a bit extra each fortnight. Look at how they are paying their rent is there a method that automates the payments or is easier for them?
There are plenty of online options available, with most owners and property managers preferring non-cash methods. The options available are:
- direct debit
- CentrePay this can be a great method for tenants who receive CentreLink payments
- Bpay this is mainly used by real estate agents.
Tenants, its important you remain consistent with the rent. As a property owner, you need to maintain a schedule and let your tenants understand that they need to adhere to the schedule. It is unlikely that your tenants will attempt to get away with very much if they know what to expect from you. Sending them an SMS reminder could help those habitual late payers. Taking prompt action when the rent falls into arrears is most important.
Another solution is to hire a property management company. Most companies have strict rent arrears processors to handle the late rental payments for you. They can keep you informed about which tenants have paid and which ones are outstanding. If necessary, the company can take action for you if someone hasnt paid. That way, you dont have to worry about dealing with the stress of being a landlord, as the property management company handles everything for you. At Rentwest Solutions we manage all aspects of rent arrears for you.
Remember that late payments will happen from time to time. Make sure you handle them in a professional manner or hire a property management firm to assist you. That way, you can focus on other areas, rather than stressing over collecting rent that is due.
Rentwest’s award winning property management team can help you with the professional management of your property. Contact us for more information.