Hello, my name is Michael Gilbert and I'm here in behalf oftenantmanagement.com.au. Today, I'm going to give you aguide on how to handle rent arrears. What I mean by rental,is when your tenant has not paid their rent, or they're behindin rent. So I'm going to give you a daily plan of the actionsand the tips you need to know when chasing your tenants forrent.

Handling tenant rental

Tenant ManagementWhat To Do When Your Tenant Has Not Paid

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

Day 1: You should give them a phone call - a concernedphone call. You might say, "Hey, Mr. and Mrs. Tenant, Ihaven't received your rent... I didn't receive your rentyesterday. Just wanted to make sure everything was ok." Andlisten to them and try and find out the reason why theyhaven't paid their rent. I will give you some tips on (how toapproach your tenant) when you're in person talking to themor when you're on the phone. You should always stay calmand collected, you should be straight to the point, you shouldnot let your tenants off the hook, you should sympathize withtheir situation but stand your ground. If you do let yourtenants off the hook on one occasion, most likely, they'llexpect to be let off the hook (on all occasions).

Give your tenant a phone call

You should always document your phone calls and whenyou've been around them, when you spoke to them, andwhat was discussed and what was agreed (upon), and youshould focus on getting a result. Focus on getting the full rentamount paid. If all else fails down track, then you canconsider.. you should consider getting some more incrementsof money.

Focus on getting a full paid rent

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

Day 2: You should send them a warning letter.Day 3: Just a nice follow-up phone call, a ring to the houseand just find out what's going on.Day 5: You should send them... this is where it starts gettingserious by day 5. You should start... you should send them aserious letter, and when you send them a letter you shouldalso consider putting this on email as well so you've got it intwo forms - via post and also via (electronic) letter.

Sending serious warning letter

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

On the seventh day that they're behind in rent, you shouldtry and organize a payment plan. So sit down with them andwork out day by day, day by day what they're going to payon a daily basis or on a weekly basis. Try and get that rentpaid. So you need to try and help them get their rent paid.

Day 10: This is when it starts getting extremely serious. Yousend them a serious warning letter and a final notice of whatcan actually happen if they do not pay their rent and they'reover fourteen days behind their rent.

Organize a payment plan

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

Day 12: You should give them a phone call, go ring to theirhouse and explain to them in person or over the phoneabout the steps you will be taking. They will give you allsorts of reasons why they haven't paid their rent. You needto stick to your ground and once again focus on getting theresult and not let them off the hook. You can always fallback on a third party - it could be insurance. So you couldsay, "look Mr. or Mrs. Tenant, if I let you off the hook andyou don't pay your rent and I'm going to take these stepsthen I might forfeit my insurance claim so it's going to fallback on the owners." So you need to make sure that youdon't let them off the hook and you follow through withwhat you say, that's very important. Keep it consistent.

Focus on getting results

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

Day 15: On the fourteenth day behind their rent, (if) they(still) haven't paid, (and) they haven't contacted you, on the15th day, send them a 14-day termination notice. This couldbe different from state to state on the actual amount ofdays, so you should look up and find out exactly what day itis. I'm experienced in New South Wales and also in Victoriaand I know in most states this is the situation.

Send a 14-day termination notice

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

So on Day 18 (that) they're behind their rent, you (already)sent them a termination notice, and now you should applyfor a tribunal to get access to the property and get all therent paid up. But you should speak to your local tribunalmember with regards to how you make the application, whatexactly do you make the application for.

Apply for a tribunal

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent

Just one note we will make: There are some states that youactually need to send out an approved form, and this isleading up to the 14-days-behind-their-rent, so this could beon the 5th day. You do need to send an approved form and(should have) completed that and sent to the actual tenant.Otherwise, if you don't send this form, you may not be ableto legally send them a termination notice.

Sending termination notice

Tenant ManagementWhat To Do When Your Tenant Has Not Paid Rent