What to do if your tenant starts falling behind in rent – Tip 1

If you have done everything in the last tips you have put yourself in a great position for a nice uneventful tenancy. Rent gets paid, house gets looked after. Then in a couple of years’ times, the tenant happily moves out.

However, you should always prepare for the worst. That is – they don’t pay rent and you have to evict them and go to tribunal.

Follow these next steps to get the rent paid back up to date and on time.

This will also make sure you have all your ducks lined up in a row if you have to eventually evict them.

Send late notifications if they’re behind

It’s really important to send late messages via SMS and email to your tenant if they fall behind for 3 main reasons:

  1. They know they have missed a payment
  2. They know you know! – and yes you care!
  3. You can prove this at Tribunal

Money is a sensitive topic so it’s ideal if the messages are automatically sent on your behalf and not you personally. Your tenants will hate getting the messages as it will be a constant reminder they need to pay the rent.

Always keep in mind that your tenant could have genuinely forgotten to update their new banking details and so the payment didn’t go through or perhaps it’s taken an extra day to reach your bank account because of the weekend or a public holiday.

You may think you should cut them some slack for the first day or two unless it becomes a regular occurrence. But it is best to send the messages at all the right times. Just keep in mind that in Victoria you can’t ask your tenant to pay earlier than the due date even if it takes 2 days for the rent to reach your account.

RealRenta has the automatic late notifications (via SMS and email) sent to your tenant on your behalf starting before they even go into arrears. Here’s our schedule:

6 and 3 days before rent goes into arrears (late). Just a friendly reminder that rent is due in 6 or 3 days

1 day in arrears (late)

4 days in arrears (late)

8 days in arrears (late) RealRenta auto sends the tenant a breach notice
(7 full days in arrears)

12 days in arrears (late)

16 days in arrears (late) RealRenta auto sends the tenant a notice to leave
(7 full days after sending the tenant the breach notice)

There’s no reason you can’t do this yourself but it will just save you a lot of time using RealRenta. Remember that notices have to go out at certain times and missing this by just 1 day means the tenant can stay longer for free, as you will be paying for it.


Check out the next blogs on What to do if your tenant starts falling behind in rent


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Jason Gwerder
Friday, 28 August 2020

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