Late payments happen.
Every property management company has to deal with them. While some renters 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 renter who is occasionally late, a friendly reminder is often enough. Most renters will be upfront with you and let you know the payment will be late. Just make a note of when it will be paid by and follow up if necessary. Ideally, you 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 renter, it is best to remain professional. If you make threats, or try to intimidate them for a payment, things could turn ugly with it becoming harder to reach a resolution. If a person is habitually late, you may want to consider encouraging 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
- EFT transfer
- CentrePay, this can be a great method for tenants who receive CentreLink payments.
- BPay, this is mainly used by real estate agents
It’s important you remain consistent with the rent. As a property owner, you need to maintain a schedule and let your tenants understand 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 for 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 on which tenants have paid and which ones are outstanding. If necessary, the company can take action for you if someone hasn’t
paid. That way, you don’t have to worry about having to deal with the stress of being a landlord, as the property management company handles everything 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 Solutions are an awarding property management team that can help you with the professional management of your property. Contact us for more information.