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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 73: Bad builders: how this investor bounced back
Episode 72: Policy changes to interest-only loans: what buyers need to know
Episode 71: How this 'stubborn' investor recognised a property lemon
Episode 70: How this investor complements each property and balances his portfolio
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
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