I just finished, sign up for a new tenant going into one of my properties. And she made a comment that really resonated with me and I thought I just quickly share it with you. We were going through rent and how to pay rent and rent arrears. And she said to me, I’ve been renting for 30 years Tina, and no one has ever told me that or explained it to me like that.
So, as a property manager, there are lots of little things that we can do to make sure or minimize the tenants going into a risk. One of those things is the application process and really checking that the tenant can afford the rent. So I use the method No more then 30% of their income should be going to rent. It’s not always the case, but it’s a red flag for me That I like to put to my owners. The second is checking the previous rental history and seeing if they have fallen behind and how much they pay now to what they’re going to is it less is it more. And then the other thing is when they sign up is before you go to that sign up appointment is to look at their pay slips and check when they actually get paid. If they get paid on a Wednesday, but their rent is due on the Friday, they’ve got they should pay their rent straight away and it should come out, straight away, but if it’s the other way and their rent is due on a Monday they get paid on a Wednesday. They’ve got two days that they will always fall behind. So if they’re, if you set up their first payment to have their week’s worth of rent plus two days, then they’ll never fall those two days behind in there.
So that’s one thing that I do, I also do a checklist for them so that they can tick off each week that they’re falling behind. And the other thing I like to explain to them is that if they do lose their job to call us straight away, because it’s not just them that are going to struggle to pay their rent and have financial stress, but it’s gonna be the owner as well, because they’re not going to be able to pay their mortgage. So if they can let us know straight away, I can call that owner and say, Hey, the tenants just lost their job. This is their circumstances, this is what’s going to happen. They can then sort out their financial situation as well, because it’s not a normal. It’s not normal these days that a landlord is someone that is rich. They are just somebody who is trying to get ahead in life, trying to build a future for their family. So if you have any other questions about rent arrears or minimizing the potential of a tenant going into arrears. Give us a call here at Leifield here to hold your hand through every process of being a landlord.