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What to do if your tenant is in arrears

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Lisa Indge, Managing director, Let's Rent, What to do if your tenant is in arrears

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So your tenant is in arrears again. What do you do? Well the first thing I would say is don't accept it, it's not acceptable to have a tenant who pays late frequently. Once or twice, maybe you can forgive but only if there's an appropriate reason for that. In New South Wales, we had legislation updated in 2010 and I was very pleased to see a clause that enabled us to take a tenant to tribunal on the basis of frequent late payment. So I really think that you should instruct your property manager to use this clause to enforce rent to be paid on time. It's also a really great idea to have an agency who direct debits the tenant their rent each month or each fortnight because that means you're establishing a situation where the money should be there. The tenant should be expected to have that money removed from that account on the day that the rent is due and sometimes even the day before. So don't put up with tenants in arrears, take action and I can assure you they will come into line but you do have to put pressure on.

 

Listen to other instalments of The Smart Property Investment Show:
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
Episode 56: The SPI Show accountant reveals all: How to pick your financial team
Episode 55: The reluctant property investor: How necessity drove an 18-property portfolio
Episode 54: The SPI Show Q&A: Listener questions answered honestly
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
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