What to do when your tenant stops paying rent



One of the main frustrations of being a landlord is ‘rental arrears’.It can become very frustrating. Tenants know that when you rent a property, you have to pay your rent regularly and on time.  However, for some, it can be difficult to keep payments on track.


Can a property manager ensure regular rental payment?What can they do if a tenant falls behind in their rental payments?At the start of the tenancy, clear expectations with respect to the rent being on time, every time, should be explained without fail!


Possibly, setting up an AP (automatic payment) can ensure that rent is paid regularly and on time, specifying in the tenancy agreement the day and the amount of the rent to be paid and providing a rental payment schedule.


What can a property manager do when the tenant stops paying their rent or is proving difficult to contact? Communication, communication, communication!


Firstly, daily phone calls, and text messages. If no contact, the property manager would follow up by property visits.  If still no reply, the property manager could call the emergency contacts noted on their application form and begin the issuing of breach notices. If this all fails an application can be made to the Tenancy Tribunal to terminate the tenancy and recover the outstanding rent.


As a last resort, should the tenant vacate the premises still owing money, it is reasonable to engage a debt collector.


Typically, a DIY owner will take a 1-2 week bond, whereas a property management agency will take 3-4 weeks.  At the end of the day with rental arrears a professional property manager will more often than not make decisions faster and have more expertise than a DIY owner.


Need help collecting rent? We can help





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