Private landlords often struggle with avoiding rent arrears in the first instance and then knowing how to deal with them once they are owing.
Let’s look at how top calibre Christchurch property management agencies approach the sticky topic of rent arrears.
Prevention is always better than cure, so property management companies place great emphasis on selecting the right candidates to increase the chances of rent being paid on time, every time.
Reputable Christchurch property management companies cast a wider net and choose from a deeper pool of prospective tenants than private landlords can. Their offices and effective marketing campaigns put vacant rental properties in front of a magnitude of actively searching renters.
Inbound tenant-screening checks should include an application form, which helps determine suitability and authorises the property manager to complete credit checks and consult referees.
Not only does finding reliable tenants help prevent rent arrears, but it also reduces tenancy turnover and the related time and money involved in sourcing new tenants.
Property managers worth their fee have digital systems in place to track rent payments across their rent roll so they can quickly identify any missed instalments. Alerts should be set up to notify the relevant property manager that a rental payment has been missed and the tenant is in arrears.
Daily updating of rents received and notifications of missed payments allows property managers to act quickly when a tenancy goes into arrears. Timely identification of payment issues and prompt contact with tenants thereafter increases the chances of a faster resolution, back payment, and continued revenue stream.
If a private landlord only checks their inbound rental payments from time to time, multiple payments may have been missed before the penny drops, so to speak, meaning the arrears owing may be higher, making it more difficult to come to a resolution without external assistance.
When a tenant fails to pay their rent, they breach their tenancy agreement and the Residential Tenancies Act. Each property management company should have a specific procedure they follow once a tenant falls into arrears.
At McPherson Property Management, we follow a strict procedure that escalates as more time lapses. This procedure is as follows:
Rent arrears isn’t pleasant for either party, so using a property manager can save landlords a lot of unnecessary stress, time and potentially money.
Read more about our property management services and how we can help you stay ahead of arrears.
And get in touch to speak to trustworthy Christchurch property managers with a proven track record.