Become an arrears expert
Knowing your arrears, how many tenants you have in arrears, and the total value of your arrears can be a crucial part of your portfolio management.
Understand the reasons that you may have got into this position. Look back to the application form. Could they in fact afford this property? What has changed since they applied? Did they demonstrate that they could pay the rent on time?
Knowing when to get on the phone, who to call, and how to call to discuss with your tenants the reasons why you are constantly chasing them, and knowing their reasons for the delays in their payments can improve the circumstances for all parties involved.
Make some changes to the methods in which you are contacting your tenants. Discuss with the tenants what changes can be put in place to get them back on the right path. Method of payment, time of payment, and take them back to the lease signing, where they agreed to pay via that method and on those terms. Do they need to change?
Landlords can also not understand the full steps involved when a tenant does fall behind in the rent. Are they aware of the procedures that you have already taken to assist them, and the constant communication you have with the tenant that has failed to date? Explain the termination process, then the Tribunal, and then finally the eviction, and the length of time it can take to reach this point.
- Take action
- Track and analyse your arrears
- Review each tenant
- Set a time to talk to each tenant and landlord
- Review your office communication
- Look for the small wins.
- Celebrate the successes
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