Constant late rent payments

my current tenant always pays 10 to 14 days behind the schedule (usually until my PM chases him), is this a norm for the renters?


It is a bit annoying coz i have a separate mortgage account for the IP which uses the rent for the repayment.
 
my current tenant always pays 10 to 14 days behind the schedule (usually until my PM chases him), is this a norm for the renters?


It is a bit annoying coz i have a separate mortgage account for the IP which uses the rent for the repayment.

Out of our 40 units..13 are late this month.
At least yours pays..it's worse when they live there and refuse to pay :)
 
we had a tenant like that. Rent was late month after month. Drove us and the PM crazy. We had to send letters each time notifying of breach and threatening VCAT etc but he knew exactly how far he could push it.

Eventually we gave him notice to vacate without reason and once the waiting period was up we took the opportunity to re-advertise the unit at a slightly higher rent to meet the market.

Then he went into the RE agent's office to see if they had another place he could rent (duh.. did he think the agent would recommend him to another landlord? ..) and he saw his own place advertised, and said "oh if you just wanted more rent you should have told me"..!

We would have left the rent as it was if he would only have paid it on time each month...
 
Out of our 40 units..13 are late this month.

That's probably the best answer you'll get.

They all aren't good...and they all aren't bad.

As you are dealing with humans, you'll be exposed to the full range of attitudes, from sucky thru to excellent.
 
Majority of tenants are fairly good.

If they're not on a lease, or nearing the end of their lease issue a notice to vacate.
 
Kathryn D's % is about right maybe slightly higher than the norm.

I find some need alot of chasing others just string it out when things are tight. If they do get 14 days behind send an application to VCAT, it may rattle their cage.
 
Yeah we;ve got one habitual late payer...but I annoy the hell out of them with constant reminders, text, email, phone.

Just this week I sent a letter (in the post) to go with the many others filed away.

Added to this letter information regarding frequent late payers and how they will be treated when it comes down to eviction.
Even if they do get back in front at the last minute, the tribunal can still enforce the eviction if indeed they have been proved as frequent late paying tenants.

All there on the NSW DFT website. Early Action.

We have also suggested in the past if they cant afford the rent we would be only too happy to help them find a more affordable place rather than go down the track we seem to be going down. Just trying to help.

But no, that seems to be when they get back in front all of a sudden and keep it up for a goodly few weeks.

Point is, stay on the front foot or you will be knocked off balance.
Know your stuff and enforce it.


I'd be putting things into action regarding eviction but also communicating with the tenant on what their options are etc. Sounds like you care and nothing wrong with that. Just be firm and direct in approach.
 
I call them professional renters!

We had tenants like that for two years. Every month they would pay 13 days late as they knew how the system worked. It was so predictable that we worked that into our budget. We were happy for them to stay as there were no other problems but they found something bigger.
 
Kathryn D's % is about right maybe slightly higher than the norm.

I find some need alot of chasing others just string it out when things are tight. If they do get 14 days behind send an application to VCAT, it may rattle their cage.

Here in our province, they need to be 30 days late, then issue them with a 15 notice, before we can evict on arrears.
 
....................
 

Attachments

  • Eviction order.jpg
    Eviction order.jpg
    67.2 KB · Views: 143
I had a tenant do this always late up to 3 or 4 weeks but was getting the money. We asked them to go on direct debit as it was getting rediciulous. They refused so we jacked up the rent 30 a week and they left.

Its hard to lose a tenant but sometimes you better off. we have a great tenant now and we send her yearly rent rewards for paying her rent on time.
 
Hi,

I have got 1 who is mostly behind with the rent repayments. PM decided to have the rent paid fortnightly rather than monthly to assist tenants cashflow.

It worked for 1-2 months , now tenant is behind on the fortnightly payments as well. Its a constant worry , emails, text messages, voicemails, thats very common with this tenant.

It really strains your relationship with PM, who could be doing his/her best within the law but tenants dont care.

Good thing is whenever NTV is issued tenant would pay rent promptly and have also accepted all rent increases without any fuss and keeps property neat and clean

Initiall I was getting upset and losing sleep over delayed rent however now have got used to it and have put contingency in place and on top if it hits 14 days without any rent.

Regards,
TV
 
Late payments is not bad at all especially if your tenant has a deep need for the money but when it becomes a habit, like late payments for 5 straight months with same reasons, then you gotta do something about it.
 
Most tenants are good. But saying that, I did have a similar experience. I constantly chasing rent, and reminding them that: "paying rent on-time is the number one responsibility of tenant", and I always offer the opportunity for them to discuss a "catch-up plan" and always remove the emotion out of it. They tried various plans (i.e pay extra every week, direct debit, etc.), but their money management was so bad they always spend their money on consumer goods (the largest tv screen, the best toys for kids, etc). I always communicate it in writing (email)/text and kept them all in my record. I always get the money.

But after 6 months of no improvement, I really put my foot down and contacted fair trading office by email (with a copy to the tenant) explaining the situation simply and plainly. I mentioned in the email that I kept record of all communication on the matter to support my case. That fixed it. Tenant paid up and have been on time ever since.

Good luck with yours.
MKP


my current tenant always pays 10 to 14 days behind the schedule (usually until my PM chases him), is this a norm for the renters?


It is a bit annoying coz i have a separate mortgage account for the IP which uses the rent for the repayment.
 
Somewhat normal unfortunately. Especially around the Christmas period.
Consider yourself as the tenants credit card that does not charge late fees/interest.

Having at least a month in reserve in that account is always a good idea.

Loved the eviction pic :)
 
Having at least a month in reserve in that account is always a good idea.

An absolute must to have the reserves to cover these sort of situations.

If you have your contingencies covered then you will find you are in a better place to make decisions, taking the emotions out of it.

Cheers
 
habitual late payer is not a good thing. Every now and then - one can accept.

I wonder if the proportion of late payers - depends on demographic being targeted by the property/landlord.
 
Back
Top