Plan Ahead Before Rent Payments Fall Behind
The Reality for Your Tenants
We all know that budgeting at Christmas can be tough for everyone. However, the pressure to buy gifts, entertain and visit family over the holidays can mean that the reality for some of your tenants is how they can manage to pay their rent for December.
At this time of year, whilst the majority of your portfolio may pay their rent on time, some of them will slip and miss a payment. However this is also a time that a repeat offender is more than likely to re-offend.
What Approach to Take
Each Property Manager will have a different approach to arrears. Some will have zero tolerance, others will take proactive steps to help ensure their tenants get their rent paid to avoid eviction. However, more often than not, we wait for our tenants to hit the arrears list before we contact them.
Here are some simple strategies to combat arrears at this time to minimise the risk of your stress:
- Send the standard letters to remind tenants to pay rent on time
- Implement Rewards/Incentives to ensure all payments are on time
- Providing personal warnings to repeat offenders, almost to let them know that we’re going to be watching their arrears very closely over the period to make sure they stay on time
- Remind tenants of importance of maintaining a positive ledger, instead of threatening termination
- Print the arrears list in advance to predict problem offenders, issuing them reminders or getting them to come in for a meeting
- Set up some automated reminders to go out to tenants a few days before their rent is due
- Offer a financial support and advice service through assistance with budgeting plans. Some companies provide a flyer with budgeting advice, others will go so far as offering a financial planning helpline to call
Perhaps its time to start thinking 12 months in advance and planning ahead throughout the year by offering your tenants an option to pay extra each week to help them get a bit ahead for these tighter times?
There are many strategies, so be sure to choose what works for your agency and your brand.
Don’t forget to score some brownie points with the owners and communicate what you’re doing to ensure they don’t have missing payments over Christmas! If your tenants do fall behind, always keep your owners up to date. Remember, they are relying on this income too.
See below to download our FREE Christmas letter template to help you get organised this year.
DOWNLOAD OUR CHRISTMAS LETTER TEMPLATE HERE
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