Rent arrears is the number one issue for landlords. This relatively common problem can have a negative financial impact on landlords, potentially leading to them losing money on their investment.
Unfortunately, the number of disputes over rent arrears has increased 33% over the past year, according to Tenancy Services statistics.
In the three months to the end of June 2023, there were 3869 dispute applications about rent arrears, up from 2771 over the same period in 2022.
This significant increase in rent arrears disputes is concerning for landlords, as they rely on regular rent payments to cover their own costs.
The issue highlights the importance of good arrears management, because rent arrears can get out of control if they’re not dealt with early.
When choosing a property manager for your home, make sure they have good processes in place to deal with rent arrears.
A good property manager will know exactly how to deal with this situation and remedy it so the problem doesn’t get worse.
How Glasshouse deals with rent arrears
At Glasshouse, we take action as soon as a tenant is late with their rent.
In order to minimise further arrears, we establish contact with them right away. A written notice is sent to them requesting payment as soon as possible. If it is not paid after seven days, it is referred to the Tenancy Tribunal for breach of tenancy (rent arrears).
Our goal is to build positive relationships with tenants so that any issues can be resolved. That’s balanced out by our duty to protect your investment and limit any problems.
Rent arrears is unfortunately a problem that many landlords have to deal with, but it doesn’t need to be a major issue with a good plan in place to manage it.