Hi everyone,
I own a property in Rural NSW and received an email on the weekend from my property manager out there saying that they had been chasing up rent for the last couple of months, and after numerous warnings had to evict them. Apparently the former tenants owe $1560 backpay. They have claimed the $560 bond and are chasin up the rest with either themselves our a debt collector. Any advice anyone apart from change pm’s?
Zac
censor me and bar your kids from the lessons I learned – makaveli
I`ll make him an offer he can`t refuse – Vito CorleoneWhy change PMs? Do you believe it is their fault the tennants couldn’t / wouldn’t pay rent?
Hi Zac,
I think that it is partly your PM’s fault for not contacting you earlier, but it is also partly yours for letting things get out of control.(sorry)…
We make it practice to keep in regular contact with all the PM’s and ring them AT LEAST once a month to find out how the tenants are going and making sure they are up to date with rent….
Once the PM’s know that you are REALLY interested, they will keep you in the loop and do it for you.
Good luck with chasing the money,
Del
I admit i didnt keep in touch with them. But they didnt keep me informed either. I am mad they let it go almost 10 weeks before they did anything, let alone even send me an email/phone call notifying me of the problem. I will definitely be more active in contacting my pm from now on.
censor me and bar your kids from the lessons I learned – makaveli
I`ll make him an offer he can`t refuse – Vito CorleoneMy rent cheques are usually banked in my bank accounts by the 15th of each month. If there is no rent cheque I call the agent and ask why.
I would never let a problem last longer than 4 weeks. If renter has a history of being late I am in more regular contact with the property manager.
We’re with Yack. If it’s not banked by the due date – we chase it up – you can’t afford not too.
When it comes to monies owed for rent, you need to be vigilant
Definately agree with previous replies. The rent is always payable by a certain date (ie 5th of each mont) per your lease. Once it didn’t hit the bank account for the first time, that is when you should start asking questions. The longer it gets, the hearder it is going to be to recover.
Hi Zac
i’m with the other guys and especially Del’s comments, we need to manage our property managers.
One other bit of advice is to get landlord insurance it’s relatively cheap and the right policy will cover you for loss of rent from tenants default.
One other comment is that you should ask the PM what their process is with tenants behind in rent. Some excellent PM’s have a computer generated letter sent out as soon as the tenant is one day behind. I’ve found that once tenants get 4 weeks behind rearly will they ever catch up.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Zac
All good advice given, with property investing it is YOUR business, unless you watch the figures carefully you will soon be in the red.
I have a huge property calender and I write in when rents are to be paid in by the PM and when mortgages are due. Infact I rang PM to ask why rent 24hrs late getting into my account. And his computer system didn’t flag my property and tell him the rent was overdue!
Lessons are a learning curve.
Happy investing
Jenny
Jenny1
zac-moose, sorry to rub insult into injury, but not knowing your personal situation, like most here i would have thought that the rent in the bank was necessary to pay your mortgage payment (unless you own outright???) in this instance if the rent wasn’t in the account i too like others here would be having some very stern words with the pm to find out what the hell is going on…..
Hi Zac,
Moving forward it is most probably better to use the cuurent pm unless you are not confident they can follow through. So depending on that make sure the pm you use moving forward understands your concerns and ensure you put a process into place so it does not happen again e.g 10 weeks before you notice. Really you should be notified on day one it goes overdue. One of the other posters had a good suggestion of touching base every month with the pm, unfortunately if they do not hear from you they tend to think you don’t care and hence your property may not get its full quota of attention. You know the saying the squeaky wheel gets the oil.
BTW… check out your landlord protection and see if your exposure is limited.
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