We are proud of our track record of almost no rental arrears. Other property managers scratch their heads at how we can achieve this, so allow us to explain our 8-step process to making sure the rent is always paid on time.
Our 8-step debt management system
Our previous experience in the debt collection industry means we know a lot more than most about how to make sure the rent is always paid on time. The key to our success is that our focus on ensuring prompt payment is built into every stage of our tenant recruitment process.
We know our competitors often claim to have a zero tolerance approach to arrears, but we have a well defined system to cover all eventualities. So on the rare occasion we find a tenant falling behind, we respond immediately with a tried and tested process to manage the situation. Here is a summary of our 8-step plan:
We set clear expectations with all new tenants
We make a big deal about paying the rent on time when new tenants are guided through our very thorough induction process. They know from the outset what the potential consequences are if they are late with payments.
We always establish a direct debit facility
Most property managers allow their tenants to choose the most convenient way to pay their rent. Instead, we establish a direct debit authority with their bank that allows us to take payment from their account when the rent is due. We’re also careful to ensure this deduction is synchronised with their pay cycle, ensuring the funds will usually be available in their account .
We monitor rent payments closely
Some managers will only notice if rent hasn’t been received some several days after payment was due. Our method means we’ll know from day 1 if there is a problem with the direct debit, and we’ll respond straight away.
Immediate contact with the tenant
We’ll endeavour to talk directly with the tenant within 24 hours of a missed payment. Our conciliatory approach usually fixes the problem straight away and all parties are happy.
We’ll visit the tenant at home or work
On the rare occasion we are unable to connect with the tenant on the phone, via email or sms, we’ll always have sufficient information on their file to ensure we can track them down for a face-to-face meeting.
We call in the debt collectors
One of our commercial partners is a debt collection firm that specialises in residential tenancies. They are recognised as one of Australia’s premier debt collection agencies. If our personal meeting with the tenant hasn’t resulted in prompt payment we can engage the debt collectors to take over and contact the tenant on our behalf. If necessary the debt collection agency will continue to work closely with us to keep things on track.
Issue of a Form 2 Notice
If the debt collectors haven’t solved the problem promptly we respond as soon as the law allows to issue a formal notice which requires tenants to pay their arrears or face eviction.
The court bailiff takes over
We don’t waste time in securing a formal eviction from the property tribunal which will allow for forceful eviction if necessary. But thankfully our preceding seven steps means it is highly unlikely this will ever occur.