Fujitsu Consulting predicts that 50,000 tenants in NSW could fall into arrears due to unemployment or reduced working hours. This is significantly less than their forecast early last year, mainly because the forecast for unemployment then was 7.5% which proved pessimistic.
How to deal with a tenant in arrears is a significant matter for the property management department. The first time a tenant falls behind can be simply because they forgot to pay, or it could be that they just lost their job and will make no further payments until they are evicted. So how to respond? Surely a tactful phone call is better than a curt warning letter that could sour the agency/tenant relationship for years.
Ray White Beecroft has a high rent tenant they describe as spasmodic. In all other respects this tenant is ideal, looking after the house immaculately and making no unreasonable demands for improvements, but he is just "casual" about paying his rent, with arrears sometimes considerably more than the bond! The owner is kept informed of the current arrears, and for several years now has each time reluctantly accepted the property manager's advice to be patient. And indeed so far the tenant has always eventually paid a large cheque covering the arrears and usually some months in advance. But it always gets a bit tense in the last few days before that cheque finally arrives! Will this be the time the tenant finally vacates without paying the arrears?
Yes, it is important to know your tenants.
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