Late rental payments

Hi I'm kind of new to renting out properties in NSW, well have not come across any issues so far till now and need some advice on how to deal with the matter. Our tenant messaged me asking is it ok to be late with his rental payment for 1 week due to his uncle passing away and whether it's okay to pay that week in the following 2 weeks of rent. I replied to him it's fine as long as he pays the 1 week late rent with the following week of rent. So far he hasn't done this. I did send him a text message before due date as a reminder saying your 2 weeks of rent are due on 5/6 which was this Monday, he only paid one week and is now overdue by a week. I have tried multiple times calling him and he doesn't return my calls or texts. I have even contacted his mother as she is his emergency contact, she told me she will see him the next day and I never heard anything from them after that. shouldn't tenants be keeping landlords informed of what is happening?He is now 1 week overdue. I'm not sure what action to take, whether to wait or send a letter. He doesn't reply to text messages or calls and has been like this since the start of the tenancy, very difficult to get into contact with! Any advice? Thanks in advance.

 

What does his uncle have to do with him paying rent?
You clearly don't know how to do this. Get an agent.

 

You don't have to be rude. His uncle passed away and he apparently needed to help with funeral costs. If you don't have any good advice then don't bother commenting.

 

Your the one missing out on rent. Think your bank will understand if you had to delay your mortgage payment? Want some good advice? Don't run a business like a charity.

 

Issue a breach notice straight away - that way you have a hope of recouping via insurance if worst comes to worst.

 

That is why I am here asking what is the appropriate action to take if a tenant is a week late.

Ok thank you

 

Guess you've been fortunate up until now but huge risk not having even a basic understanding of property management/law.
Being a landlord - NSW Fair Trading

 

He is only a week in arrears at the moment I think it would be best to engage an agent that knows the law and legislation so you do not end up with a tenant that is months in arrears or worst if you do not complete required paperwork correctly your claim to court for warrant of possession will be thrown out.

 

That is why I am here asking what is the appropriate action to take if a tenant is a week late.

Thank you for the link. Why I'm writing is I read

thank you

 

Follow the legislation, you need to learn the legislation if not familiar, you can call the relevant authority too for advice in the state the rental is in.

 

Tenants in arrears don't usually pick up phones or keep you informed. This is typical and normal behaviour for a tenant in arrears.

You need a breach notice followed by legal action. I'm in favour of getting an agent involved.

 

Most people would say that when making the decision to self manage vs getting a property manager that it's imperative to know as much about the local laws as possible.

The main reason is that the more you know, the smaller issues become. When breaching or potentially evicting a tenant there are very specific ways and times it can be done. If you don't notify something properly then you have to start all over again and this will impact how much money Landlord Insurance will pay you out as you haven't mitigated your own losses.

1. read up on how to do this
2. it is now too late to get landlord insurance if you don't already have it

If you are self managing to save money you may find your own inexperience costs you as much as having a property manager. I hope it doesn't but start reading up now and send your breach tomorrow.

 

don't listen to these guys that try to sell you something, you keep self managing. don't need an agent.

it's just one week but ask him to catch up on rent. if you have a good property on at a good location consider/start advertising for a new tenant.

he at least told you in advance about his inability to pay rent. give him a couple weeks to catch up.

how many weeks bond do you have? if you have 4 weeks bond dont stess over 1 week overdue.

 

next time try to rent to a korean family instead...

for example, normally the average aussie bloke make $900 a week but they will spend all of it. (all $900.)

with koreans they have good saving habits, say they earn $900 a week instead of spending all of it they will save $200. And over time they have a savings tucked away for a rainy day. So when these unexpected things happen they can still afford to pay for rent and the funeral.

 

Okay I'll play along, what if he doesnt answer his phone / email, or does with some sob story?

Sounds a bit racist?

 

That's the secret to PMing.

All the PMs don't want you to know.

Renting to koreans is like playing the game on easy mode.

PMs dont want you to know so you play it on Insane difficulty and when you finally lose and throw in the towel they can come and save the day.

 

Fullylucky should open his own property agency.

 

Sorry off topic sort of....

In USA when tenants are late with their rent and they pay monthly they are charged $100, split 50/50 with PM/landlord, this can add up significantly over the year.

I have one tenant who always pays but generally 1-2 weeks late.

Wish we had this condition on our Australian leases

 

Excuses i got from aussie blokes:

Example 1: I bought my own place, it's being built and this week i had new fencing put in so i dont have money to pay rent to you..

Example 2: ummmm see that car it's red that's why i cant pay rent today. (Excuses that doesnt have nothing to do with paying rent)

Excuses from korean tenant:

Hey mr landlord, sorry to bother you, do you mind if i pay 4 weeks rent at a time?

 

yes, you need to play hardball, no tolerance whatsoever. If you have been around the block a few times you soon wake up to this one