Renting out your property can be a complicated task, especially if you are having trouble collecting rent from your tenants. This article is to help property owners without property managers to avoid any complications and ensure they always get their rent in time.
- The first step is to prevent any unreliable tenants from renting out your property. Don’t rent to a tenant who you believe will struggle to pay despite what they tell you. A rule to stick to is the 33% rule – if the rent is more than 33% of the total household income then it will be likely that the tenant will fail to make payments on time.
- Ensure you have properly communicated your expectations and instructions to the tenant – verbally and in writing so they are aware of what to expect from you once the tenancy agreement begins. Inform the tenant of exactly what you expect in regards to the rental amount, payment frequency and date, what is inclusive of the rent and any penalties for late payment or breaches. This can be a tiring process that a property manager can help you with.
- Send out text or email payment reminders before due date of payment as tenants can often be caught up in their daily lives and forget. Take other possible steps to ensure your tenant is always ware of the date the payment is due – e.g. give them a calendar at the beginning of their tenancy with all their payment dates.
- Set your tenants up on direct debit if possible. This way you can be assured that the payment will always be made.
- Insist that the tenants make single full payments – do not accept multiple payments from share tenants e.g. flatmates. Also, never accept part payments if a tenant falls behind.
- Finally, do not renew the lease of a tenant who you have constantly had to chase for arrears.
At Metro NZ Property Management we help our clients manage their property and take on the hard tasks of looking after a property off our client’s hands – tasks such as collecting rent. Contact us today to see how we can help you with your rental property.