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Tenant Management What To Do When Your Tenant Has Not PaidHandling tenant rentalHello, my name is Michael Gilbert and Im here in behalf oftenantmanagement.com.au. Today, Im going to give you aguide on how to handle rent arrears. What I mean by rental,is when your tenant has not paid their rent, or theyre behindin rent. So Im going to give you a daily plan of the actionsand the tips you need to know when chasing your tenants forrent.

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Tenant Management What To Do When Your Tenant Has Not Paid RentGive your tenant a phone callDay 1: You should give them a phone call - a concernedphone call. You might say, "Hey, Mr. and Mrs. Tenant, Ihavent received your rent... I didnt receive your rentyesterday. Just wanted to make sure everything was ok." Andlisten to them and try and find out the reason why theyhavent paid their rent. I will give you some tips on (how toapproach your tenant) when youre in person talking to themor when youre on the phone. You should always stay calmand collected, you should be straight to the point, you shouldnot let your tenants off the hook, you should sympathize withtheir situation but stand your ground. If you do let yourtenants off the hook on one occasion, most likely, theyllexpect to be let off the hook (on all occasions).

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Tenant Management What To Do When Your Tenant Has Not Paid RentFocus on getting a full paid rentYou should always document your phone calls and whenyouve been around them, when you spoke to them, andwhat was discussed and what was agreed (upon), and youshould focus on getting a result. Focus on getting the full rentamount paid. If all else fails down track, then you canconsider.. you should consider getting some more incrementsof money.

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Tenant Management What To Do When Your Tenant Has Not Paid RentSending serious warning letterDay 2: You should send them a warning letter.Day 3: Just a nice follow-up phone call, a ring to the houseand just find out whats going on.Day 5: You should send them... this is where it starts gettingserious by day 5. You should start... you should send them aserious letter, and when you send them a letter you shouldalso consider putting this on email as well so youve got it intwo forms - via post and also via (electronic) letter.

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Tenant Management What To Do When Your Tenant Has Not Paid RentOrganize a payment planOn the seventh day that theyre behind in rent, you shouldtry and organize a payment plan. So sit down with them andwork out day by day, day by day what theyre going to payon a daily basis or on a weekly basis. Try and get that rentpaid. So you need to try and help them get their rent paid.Day 10: This is when it starts getting extremely serious. Yousend them a serious warning letter and a final notice of whatcan actually happen if they do not pay their rent and theyreover fourteen days behind their rent.

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Tenant Management What To Do When Your Tenant Has Not Paid RentFocus on getting resultsDay 12: You should give them a phone call, go ring to theirhouse and explain to them in person or over the phoneabout the steps you will be taking. They will give you allsorts of reasons why they havent paid their rent. You needto stick to your ground and once again focus on getting theresult and not let them off the hook. You can always fallback on a third party - it could be insurance. So you couldsay, "look Mr. or Mrs. Tenant, if I let you off the hook andyou dont pay your rent and Im going to take these stepsthen I might forfeit my insurance claim so its going to fallback on the owners." So you need to make sure that youdont let them off the hook and you follow through withwhat you say, thats very important. Keep it consistent.

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Tenant Management What To Do When Your Tenant Has Not Paid RentSend a 14-day termination noticeDay 15: On the fourteenth day behind their rent, (if) they(still) havent paid, (and) they havent contacted you, on the15th day, send them a 14-day termination notice. This couldbe different from state to state on the actual amount ofdays, so you should look up and find out exactly what day itis. Im experienced in New South Wales and also in Victoriaand I know in most states this is the situation.

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Tenant Management What To Do When Your Tenant Has Not Paid RentApply for a tribunalSo on Day 18 (that) theyre behind their rent, you (already)sent them a termination notice, and now you should applyfor a tribunal to get access to the property and get all therent paid up. But you should speak to your local tribunalmember with regards to how you make the application, whatexactly do you make the application for.

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Tenant Management What To Do When Your Tenant Has Not Paid RentSending termination noticeJust one note we will make: There are some states that youactually need to send out an approved form, and this isleading up to the 14-days-behind-their-rent, so this could beon the 5th day. You do need to send an approved form and(should have) completed that and sent to the actual tenant.Otherwise, if you dont send this form, you may not be ableto legally send them a termination notice.