Prevention is the key
A bad tenant will make all types of excuses for not paying the rent.
You have probably heard every excuse there is! Unfortunately, no Landlord is immune to rent arrears.
You can certainly sympathise with tenants that sometimes there are unforeseen circumstances that result in delayed payments, however regardless of the reason, the fact remains that neither your investment nor any cover that you have in place to protect you for loss of rent should be jeopardised. And further, your Bank Manager is not that sympathetic either!
Hitting first offenders tough and early is the key. Late payers left unchecked will become serial offenders. Regardless of whether the tenant has always paid on time and this is not the norm, it should be targeted the same way as all late payers.
You may try to accommodate any extraordinary situations and work out a short-term payment plan, however ensure that you follow through on relevant notices on time to ensure that you are protected.
Despite our best efforts and a steady stream of reminders a tenant may still choose to not pay their rent and possibly miss several payment periods. They may well be headed for eviction. Even though a bond has been paid, this should be left in place to cover such things as clean-up and re-letting expenses and not be relied on for rent left owing.
Ensure you check your landlord insurance policy to ensure you are covered for such events. If you have no insurance cover in place or you have inadequate cover, seek advice today!
Be proactive in your approach and ensure that your tenant is aware of your expectation in relation to arrears. What procedures do you have in place should they fall behind and who they need to contact should they run into difficulty.