I used to have a portfolio of over 200 properties & had the same situation with lots of tenants in arrears.  I once sent a letter to all of my tenants who were constantly in arrears reminding them of our rent arrears procedure & advising that if it was not followed, notice to leaves would be issued for repeated breaches. 

It made a big difference & most tenants picked up their act.  You could try something like this as tenants may not realise that repeated breaches can result in the tenancy being terminated.  Make sure that you follow through with it though, issuing the notice to leave if the arrears are not rectified or if they are repeated.  Tenants will either pay up quick smart or you will be rid of a tenant who did not pay their rent on time anyway. If this were to go to tribunal, it is something that surely would be upheld as it is legislation…

Thank you Melanie, That’s also part of  our procedures, believe me we haven’t left any stone unturned…. We feel that some Tenants don’t give a damn… 

If you are following up your notice to leaves you shouldn’t have those tenants anymore………….. :)

I’m in the same situation at the moment. I have a few that pay enough that they don’t get into arrears far enough to send the notice to vacate. And it’s always the same tenants.

Some of the tenant ‘black list’ websites such as TRA (trading reference Australia tradingreference.com ) have a letter that can be downloaded, edited and sent out to the tenants as a warning letter to them that rental arrears is a breach of tenancy and as a result they could end up getting listed on the site and jeopardize their future rental reputation. (obviously this cant be done until the arrears reach a termination situation). This had worked really well in the past as it is something different to the usual company standard letters that the repeat offender tenants have received so many times they start to ignore them.

You could also remind them that their ledger can not lie, no matter how much of a ‘nice’ verbal reference that a property manager can pass on most agents and banks will ask to see the tenants rental history ledger upon applying for a new rental property or loan. Most of tenants don’t seem to think of how a ‘minor’ underpayment of rent a few weeks in a row can effect this and their future opportunities.

If they dont respond to 2 or 3 letters.  Terminate.  End of the line for them.

Kylie

Thank you all for replying, at least we are not alone…Next step with Landlord agreement, will be debt collectors!! 

I have one of those tenants, and the landlord refuses to make them leave as they have lived there 6 years. He won’t listen to the fact that they have been arrears for most of the time they have been there. He just sees that they catch up eventually…

Hi guys,

We use Barclays Mis as a debt collecting agency that the Landlords can sign up to. If getting sent a letter by debt colelctors doesnt scare them into paying the rent alone, it gives us a bit of opportunity to play good cop/bad cop. ‘Oh? You got a letter from the landlords debt collectors? Well if we can get you into the office to make a payment plan I can probably speak to the landlord and ask them to call the debt collectors and call them off….’