Whatshot
Landlords, here's how to deal with late-paying tenants
Landlords, here's how to deal with late-paying tenants
Author: Pranil Maharaj
Date: 2018-07-20
Date: 2018-07-20
You've screened the tenant thoroughly and their credit check returned a glowing review. You even built a clause into the rental agreement that stipulated that any late payments would accrue interest payable on the following month's rent. And yet, your tenant is still late on his or her payments. What is a landlord to do about this
The reality is that every landlord will eventually have to face at least one late payment on their rental property. To avoid running into trouble with bond repayments, landlords need to ensure that they allow enough room between their tenant's rental payment date and the date by which their bond repayments are due to be made.
Beyond this, landlords should always have the full bond repayment amount readily available in case a tenant is unable to make payment in time.
Laying your own liabilities aside, you will still need to take action to ensure that the tenant does not make a regular habit of defaulting on payments. Evicting a tenant is a difficult and time-consuming procedure. It is better to try and come to an agreement with your current tenant than to try and replace him or her with another tenant immediately.
The financial institution at which you've taken out your home loan would behave in the exact same manor if you defaulted on payments, so you should not feel guilty for simply reminding tenants of their legal obligations to you.
If the tenant fails to act on this letter after the stipulated seven-day period, you are legally allowed to terminate the lease and ask the tenant to leave.
This is why the screening process is so important when it comes to leasing a property. Choosing to make use of a reliable rental agent who knows all the tell-tale signs of an unreliable tenant can save you the trouble of dealing with a tenant who neither pays their bills nor vacates the property.
