Rent Arrears– Handling the difficult tenant

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Rent Arrears—It is always a subject at the forefront of our minds and our Landlords minds. What happens when my tenant is in arrears?

At North Shore Realty we do everything possible to educate the tenants at the initial sign up on the importance of paying rent on time. Strict guidelines on affordability are also adhered to during the application process, but as life can be unpredictable, tenants’ circumstances can change, the loss of regular work or a marriage break can happen to anyone.  When a tenant falls behind in rent it is not only a stressful time for the landlord, the tenants themselves are jeopardising their future rental history and therefore it may become difficult for the tenant to secure a new rental property in the future. Not only do we serve notices to remedy breaches for rent arrears, it is important we also have these conversations with the tenant so they are aware that not paying the rent on time can affect them in the future.

Being pro-active in this process is the best way to resolve the problem and come up with a solution to get the tenant back on track.

When all of the processes have failed and the tenant has become complacent, we are often faced with a dilemma, do we issue a notice to leave to the tenant? Although landlords are sometimes reluctant to follow through with a notice to leave, it is quite often the last tool we have to get the tenant to understand the importance of paying rent on time, otherwise they will need to vacate the property. Usually the tenant gets the message and starts paying the rent on time, faced with the prospect of finding a new home.

Landlords need to be aware that to continue to allow a tenant to pay in arrears often gives the tenant the impression that the rent is not important and therefore they don’t make this a priority.

If you have a problem tenant please speak to your property manager for the best advice on resolving this issue.



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