CategoriesProperty Management

Rent Arrears

Rent Arrears

It can be a stressful time when tenants get into Rent Arrears and we have, low-tolerance policy of this.

These are the steps we take to minimize escalations and thus maximise your return on your investment.

Day 1- We will send a text message, a phone call or an email to the tenant, this is just a friendly reminder. How we deal with each situation can be different, depending on if this is their first offence or if it is becoming a regular habit. We like to give the tenant the benefit of the doubt to preserve the relationship going forward.

Day 2/3- If by this time, we have not heard from the tenant; we send out a reminder across all mediums. Being text message, email and a friendly phone call. We use all communication methods to ensure that we use all our resources to contact the tenant.

Day 4-5 If The tenant cannot be reached or have not paid. We issue a 14-day written notice to pay the arrears. This will be sent by email and hand delivered to the tenant, or if the tenant isn’t home, we will leave it in their mailbox.

Day 6-10 If by this time the situation has not been resolved, an application to the tenancy tribunal will be lodged (Section 56 of the Residential Tenancy Act*). This is no extra cost to the landlord, tenants can not be removed until 21days in arrears.  When we go down this path, there are a few factors your property manager will keep in mind.

Such as:

·         Is this the tenants first offence?

·         Is there a valid reason why they have missed their rent?  Example: they might have lost their job. 

·         Are they regular late payers? And this is not their first offence?

·         Has the tenant abandoned the property?

·         Has the tenant gone away and did not set up an automatic payment?

What if the 14day notice expires and they have not paid arrears?

If this happens, and they have not resolved the situation. The application will be lodged and Tenancy Services will send through a confirmation of the application.  A notification will thereafter be received of a mediation date.  

It can take up to six weeks for a date to be set. 

A mediation hearing is then held to come to form an agreement with the tenant to pay the rent arrears and sometimes a consequential clause is applied.

If the tenant is over 21 days in rent arrears with no resolution reached, the landlord can apply for re-possession of the property under section 55.  If we placed your tenant there will be no application charge applied.

We believe in the maximum return for our landlords and being proactive in following up in all property related matters to maximize your investment.

You are welcome to call us on 0800 114 978 to talk about how we can manage your property.