Tenant always a week behind on rent

[MichaelGilbert]

Already done, but they have 14 days to correct.

In NSW you can apply to Tribunal (if your tenant has a history of paying late) to get an order where if you send another 14 day termination notice (for rent arrears) the tenants have to move out regardless if they pay up before the vacate date. You'll have to show tribunal your late notices, communication notes and payment plans etc to help get this order.

Atleast if you got this order you would scare your tenants and hopefully they don't fall behind anymore! And if they do, the next 14 day termination notice will stick regardless if they pay up.

By law, can we (as a landlord) do this?
It would be awesome, if the direct debit can be implemented.

As a Private Landlord I think best thing to do at the moment is get your tenants to 'schedule' the payments. They can by going into their internet banking (or in branch) and setting the schedule. This has worked for me in the past.

We are currently building our 'Rent Collection' module now for my business. It wont be ready for while yet (possibly 6 months) as there is a lot to it but it will have Direct Debit.

 

[forbse]

Regular gentle reminders immediately after a missed payment.

Successful management is often an investment of time.

 

[Salvatore1]

The other reason maybe as per the law change in Jan 2012, tenants are only required to pay 2 weeks rent in advance. You are no longer permitted by law to request 1 mth rent in advance.

 

[Paul@PFI]

Bpay can take a few days. They may be paying on a Wed and its being received Friday but processed by agent on a Monday...I would raise the concern and have the REA earn their % and address it. Even if its put the message that you are concerned it may stay same but not get worse.

My tenant is always well in advance and prepays rather than arrears. I had to insist she use the dishwasher and AC...She doesnt want to wear it out ???

 

[Scott No Mates]

The other reason maybe as per the law change in Jan 2012, tenants are only required to pay 2 weeks rent in advance. You are no longer permitted by law to request 1 mth rent in advance.

You can't ask for a month's rent in advance but the tenant can offer it, likewise they may want to pay a year in advance.

 

[fullylucky]

After just reading a few other posts in this section re tenants being a month behind on rent maybe Im raising a non issue here but my tenant always seems to be a week behind on the rent.

For example, this month they paid from the 28th march to the 25th april.

Am I complaining about nothing.... I would have hoped that they paid to Friday 2nd may.

If the tenant still only pays 4 weeks ie to the 22nd may next month then can I ask the PM to speak to them?

thanks for your opinion

hey donkey, if they are 1 week behind rent that just means your bond is reduced by 1 week...

if they are paying by cash then you shouldn't be too fused coz i think you shouldn't pressure them into withdrawing cash just for the sake of paying you. instead give them time and say you can do it when it's convenient. like when they are out shopping. don't drive out just to withdraw rent money that's bullying. (but 1 week is still a bit too long...) maybe 3 or 4 grace days is acceptable.

if it's electronic transfer than they shouldn't be 1 week behind. normally from different banks it takes maximum of 3 days so factor that in if they are using a different bank. they might have transferred the rent 3 days over due and it showing up 7 days overdue... did you factor that in?

but if it's the same bank the proper way is they should set up a calendar reminder on their smart phone that reminds them to pay. like rent due tomorrow on repeat every 2 weeks.

the best tenants are the ones you don't need to remind and pay rent and say thank you when paying.

however research suggests 70% of people don't do that and they need reminding. that means you should tell them to pay rent. (in their mind they expect you to remind them and say. rent over due please pay.) sucks i know but that's what you should expect.

 

[Burramys]

I have tenants that paid the second month in six installments. At other times payments have been in small amounts, up to 54 days late. Now they pay 13 days late, knowing that on day 14 we hit them with a breach notice.

Careful records about the late payments are being kept, and I intend to take interest using the Penalty Interest Rates Act (11.5% last time I looked) from the bond. I love compound interest. I think they will pay as to go to court for a relatively small amount and have a decision against them which will hopefully go on the National Tenancy Database is not in their interest.

The only problem is if they avoid paying the last month of rent. If that happens i understand that the NTDB can be advised.

 

[thatbum]

I have tenants that paid the second month in six installments. At other times payments have been in small amounts, up to 54 days late. Now they pay 13 days late, knowing that on day 14 we hit them with a breach notice.

Careful records about the late payments are being kept, and I intend to take interest using the Penalty Interest Rates Act (11.5% last time I looked) from the bond. I love compound interest. I think they will pay as to go to court for a relatively small amount and have a decision against them which will hopefully go on the National Tenancy Database is not in their interest.

The only problem is if they avoid paying the last month of rent. If that happens i understand that the NTDB can be advised.

This sounds like a bad plan. Why didn't you evict them earlier? And/or why not evict them now?

 

[Perp]

After just reading a few other posts in this section re tenants being a month behind on rent maybe Im raising a non issue here but my tenant always seems to be a week behind on the rent.

For example, this month they paid from the 28th march to the 25th april.

Am I complaining about nothing.... I would have hoped that they paid to Friday 2nd may.

I don't think they're a week behind on the rent at all, on this data. If your PM processes rents on the last day of the month, i.e. 30 April, then of course it won't include the rental payment due 2 May.

Or am I missing something?

 

[Burramys]

This sounds like a bad plan. Why didn't you evict them earlier? And/or why not evict them now?

I'm unclear as to what part of my post you think is bad: the tenants paying late, me accepting this, or taking some of the bond when they leave. The July payment was made on time, so maybe they have changed their payment scheduling. It's simpler to accept a late payment, as the interest forgone for a year is 20% of a week's rent. This will not stop me claiming it from the bond. The cost of eviction and finding new tenants vastly exceeds the interest forgone. However, should the need arise, eviction is certainly an option.