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How to encourage tenants to pay on time

Thursday, 29 September 2016

keys-1837155_640If you have found yourself repeatedly renting a property to problematic tenants then you may be wondering how you can cut down on the number of tenants who end up missing payments. As a landlord, missed payments can be one of the most frustrating aspects of buy-to-let, and can leave you disheartened and frustrated with your tenants. Here are some ways that you can reduce the likelihood of arrears.

Standing orders

We are all human and often a tenant can miscalculate the payment day or simply forget to make a payment at all. One of the easiest ways to prevent any mistakes is to have the tenant set up a direct debit or standing order. This standing order can be set up on the day after their payday which should allow rent to be paid automatically, and before they have chance to accidentally spend too much of their wages.

Act promptly

If you keep good records of your rental income then you should be able to spot straight away when rent has been missed. The best way to encourage payment on time is to contact the tenant as soon as rent has been missed. This shows them that you take the issue seriously and can limit any further losses.

Discuss any problems

Keeping a level head at this point is imperative and you may find that your tenant has genuine reasons why they have skipped a payment. If they are having financial difficulties then you should be able to offer possible solutions such as a repayment plan or eligibility for housing benefit. Repayment could involve paying back the arrears split over the top of forthcoming rent or it could be adding an additional month’s rent on to the end of the contract. Alternatively you could offer to waive the month’s rent if they accept to terminate the contract and vacate the property. However, you should remember that any agreement you make should be put down in writing immediately.

Here at Rollingsons our property litigation team has extensive experience acting for landlords in relation to all manner of property disputes. Contact us on 020 7611 4848 or visit our property litigation page for more information.

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