Rent Arrears, What We Do

At M.E. Property we are passionate about our tenants understanding the consequences of late rent and how it can affect their current and future renting needs.

At the time of inducting the tenant and signing the lease agreement the following information is explained in detail.

What are the consequences? Let us explain.

Firstly, all rental payments are receipted into a ledger which is a document detailing how much rent has been paid and the date. In addition most software used by agencies will also record all forms of reminders sent by the agency regarding rent and water arrears.

How does that impact the tenant?

When applying for another rental property the first item we are asked to provide is a copy of a rental ledger, if the ledger shows irregularities in the rent and water payments and documents constant reminders, their application is going to be less favourable than an application where there is no history of rent arrears.

At M.E. Property we only approve applications where we have evidence that the applicant has paid their rent on time.

What if they know their rent will be late?

If in the unlikely event that the tenant cannot pay their rent on time they are required to contact our office immediately to make arrangements. They are encouraged to contact us at least 2-3 days prior. We will make contact with you to explain the circumstances as we understand it is very likely you may be relying on that payment to meet mortgage repayments and or other commitments.

We recommend to the tenant to exhaust all other avenues to source their rent payment if they are having difficulty making the payment on time.

Our rent and water arrears policy

  • Day 1 – Friendly sms reminder
  • Day 2 – Telephone call and owner notified
  • Day 3 – Telephone call and email
  • Day 4 – Continuous contact until payment is made
  • Day 7 – Personal visit

Whilst implementing the rental arrears policy we will keep you informed every step of the way.

At M.E. Property we take rent arrears seriously and follow strict protocol. In the event that we reach Day 16 we will immediately issue a Form 2 Notice to vacate, if the tenant does not comply with the notice we will proceed to apply to the tribunal for an eviction and vacant possession.

If throughout your tenancy the tenant has been consistently late with rent or been issued a form 2 Notice to Vacate it is our company policy to recommend to the owner that they do not renew the lease at the end of the agreement.

What happens if the tenant is evicted by an order of the tribunal for rent/water arrears?

The bond will be released to the owner and the tenant will be responsible for all additional costs. If the bond is not sufficient the matter can proceed to the Magistrates court for recovery or we commence with an insurance claim to recover cost.

What if the bond is from Housing SA?

The bond will be released to the landlord the same as if it were paid by the tenant.

Housing SA will then proceed with recovery of the bond from the tenant through debt recovery services. It is explained to the tenant the impact this can have on their credit rating.

What happens if a landlord makes a claim on their landlords insurance? Is it recoverable?

Most landlord insurance policies retain the right to recover from the tenant any claim made by the landlord against the tenant. This could prove to be very costly to the tenant particularly if the premises has been left in poor condition.

So we can maintain a good working relationship with all our clients we encourage tenants to always pay their rent on time and to communicate with us regarding any financial hardship.