podcast

What to do if your tenant is in arrears

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.

 

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Episode 85: Q&A session with Paul Glossop – more questions answered!
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Episode 83: BONUS EPISODE: Top Aussie broker’s tips for surviving changes to mortgage lending
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Episode 81: BONUS EPISODE: Secrets of the Perth market uncovered: invest now or wait?
Episode 80: Q&A session: SPI answers all your burning questions
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