One very common complaint of property investors is the late payment of rents, whether the properties are under management or whether they are self-managed. In saying that, statistics show that self-managed properties tend to have more problems with late payments than those that are under contract for property management.Managing rental payments with a property investment is not very much different than controlling credit within a business. But inexperienced property investors do unfortunately tend to take the word of tenants and do not do quality tenant checks to ensure that they are taking on a good tenant.There is no reason why a tenant should be allowed to run late with their rent, unless of course you are feeling very generous.Say a property investor has 8 properties and all the tenants are running behind with their weekly payment, it would not be very long before the landlord would be thousands of dollars behind in income payments. Will his bank manager say, "That is OK if we don't get your mortgage payments this month, we will wait for your tenants to pay you!" No, of course they do not!
There is no doubt that communication is the key when it comes to late payments. Every now and then you will come across a tenant who purposely takes you for a ride, and fully intends to get late with their rent. But the fact is that people do have financial difficulties from time to time, especially those living from week to week, so with a little coercion and understanding, tenants can be brought back into line quite quickly.BUT given this, it is still very important to let the tenant know that this is not the usual process and that if there is a next time the tenant will be asked to leave.With a wholesale or retail business, you would not supply again until the person has paid up in full, and if they did abuse the trust again, they would be refused credit. The difference with property investing is that because they are living in your property you do need to keep them up to date or remove them.
Landlords are not in the banking business.
It is imperative that a property investor does maintain control of their income at all times, otherwise the more they slip behind the harder it is to get paid any unpaid rents from the past.Also property investors also have ongoing expenses and it is from the rental income that the property investor has calculated that the expenses should be met so it is important that rents be kept up to date. At Property Investment Know How you will discover a lot more information on how, when and why to invest in property, the different strategies to use and how to deal with the many different situations that arise. Kaye Dennan is an experienced property investor and an ex real estate office principal so shebcan guide you with views from both sides of the property investment view point. Visit
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