This is a great question I love when new owners come and ask me this question. So, what will happen when your tenant falls into arrears. This is a great question to ask when you’re shopping around for a Property Manager. And I said Property Manager, I didn’t say BDM.
So, some agencies have a BDM. A Business Development Manager. So, they bring on new business and find them. I do find sometimes that what a BDM will tell you and what actually happens, what an actual Property Manage does, is two different things. So please ask the Property Manager before you sign those documents. You may get on with the BDM like house on fire, you love them, but you don’t like the Property Manager.
That’s another video for another day, but ask the Property Manager what she would do or he would do if the tenant falls into arrears. What I do, is if the tenant falls into arrears from day 1. Day 1. They will get a text message saying “Friendly reminder, you are behind in your rent.”
Now sometimes I’ll get text messages “I transferred it last night, Tina.” All of those answers. Now they will continue to get that text message and an email every single day until they caught up in their rent. If they unfortunately get to day 8, the legislation states in Queensland that we can send them a notice to remain.
Now when your tenant does fall into arrears on day 4. You will get a call from me saying “Hey, just to let you know, your tenant is now 4 days in arrears” we have sent them 4 text messages already to get them caught up but they haven’t caught up, sometimes we will let you know that we have heard from them or this is their circumstances and things like that. But from day 8, you will then have another call from us saying that we’re gonna to issue them with a notice to remedy.
The notice of remedy will be sent to them, legislation states we have to give them 7 days remedy plus delivery time. So if they don’t have an email address or they haven’t given us authority to send electronic transfer, we will have to add postage. Which means Australia Post. So, on Australia Post, It does say 4 to 7 days in certain areas, it will take to deliver that letter. So, if we have to give them 7 days plus postage, depending where they are. So, you have to keep that in mind as well. When that time period is over, and they haven’t remedied the breach. We will then issue them a notice to leave on your authority.
So, you still have the end say to if we do send that notice or not and obviously, we will be in communication with you through that whole process and where they’re up to. Some tenants within that process will answer our calls and we’ll go into a payment plan with them. Obviously, that is the best way if they don’t pay everything up front is that we can get in contact with them to arrange a payment plan.