When paying rent becomes a problem

It’s a situation that no tenant, landlord or property manager wants to be in. Suddenly, the tenant falls behind on their rent.

Your property manager understands that rent that goes unpaid can be more than little inconvenient for landlords, with expenses still needing to be made on investments.

Unfortunately, circumstances do occur which may impact on your tenant’s ability to pay their rent. Job losses, illnesses, relationship breakdowns… there can be many reasons that may simply come out of no-where. Taking action early is imperative to minimise disruption and avoid financial loss, as one week behind can quickly turn to three, four, five etc. Of course, there are processes in place that your property manager will follow to ensure non-payment of rent is dealt with promptly.

At the beginning of all tenancies, tenants are advised how and when rent is to be paid. It is made clear that, if they do not pay their rent on its due date, they will fall into arrears. Depending on the type of agreement, a breach notice will be issued after a number of days, advising when payment will need to be made. If rent has not been paid by the stated date, property managers can provide a notice to leave.

Your property manager’s job extends far beyond finding a tenant for your property. A good property manager will not only stay on top of rent but be kept aware of any issues which may impact a tenant’s ability to pay rent. Maintaining open communication between all parties is imperative. Sometimes understanding the impact a relationship breakdown or job loss, for example, can have on a tenant, can allow property managers to focus attention on finding solutions for all parties involved.

Yes, eviction is an option, and if rent payments appear to be late more often than not, it may be the best option to avoid the risk of loss of income. But if you’ve never had problems with your tenants ability to pay rent beforehand, talk to your property manager to see if there are other issues at play, which you may not be aware of, and discuss the best approach moving forward to ensure you’re getting the best from your investment.

SOURCE: RE/MAX Australia