paying rent

Rentview are always busy looking to provide some useful information to the rental market and our latest Infographic looks at some of the key trends/issues landlords are facing with their rental properties today. Take a look at our findings.

Now some quick notes on the data and areas for discussion :

Bank transfer is the most common payment method with over half of the landlords surveyed collecting the rent this way. Just under 30% are using a standing order to deduct the amount each month while 14% still physically collect the rent from their tenants. Which is easiest in your opinion?

Our next question we quizzed the landlords on was their experience in collecting the rental payments. Almost half (43%) of landlords have experienced some sort of difficulty in collecting rent. Definitely a worrying statistic which raises the question of quality of referencing tenants?

Following on from my point on the quality of referencing we questioned our landlord database on the various formats they use for issuing a reference to a tenant. Not surprisingly e-mail has taken over from some of the previously popular formats like phone and written.

A big area we wanted to analyse was how the landlord communicates with their tenants for management of the property. This is a big area in which Rentview help agencies save time and reduce the no of hours they have that phone held to their ear! Coming out on top was landlords who call their tenants and those who have hired an agent on their behalf to manage the tenant and the property. I have always been a conscious of using the phone when dealing with important tenant/landlord issues as it is in no way traceable if there was ever to be a disagreement.

And finally the stuff most of us don’t want to hear, how many landlords have had to issue legal notices to their tenants on rents unpaid. Unfortunately one fourth of the landlords have issued a rent arrears or eviction notice.

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by Andreas Riha

The payment of rent on time from a tenant to a landlord is the golden rule in the rental industry. It is the most basic of expectations that rent will be paid on an agreed date. It may not be possible to keep a 100% record, but tenants should make every effort to pay on time and to save for emergency situations so the rent can still be paid. A simple way to ensure with relative certainty that it will be paid is to set up a standing order. With standing orders, money is transferred directly from the tenant’s bank account to the landlord’s, which removes the hassle of a manual payment.

Missing the payment date

Paying on time is a common courtesy, which should be enough of a reason to do so, but sometimes tenants need a little push. So if the rent does not arrive on its due date, a phone call may be enough if it is a genuine mistake, but if not, a landlord must notify the tenant in writing followed by the relevant action in your region. I would recommend seeking professional assistance at this stage is needed.

Outsourcing the management of your property

One of the benefits of renting a property through a letting agent is that they take over the responsibility of managing the payment of rent. Now whilst there is a fee for a full management service and rent collection, it is well worth it as they take over the stress. This can be a very stressful and time-consuming task and if not done so correctly it can result in being very costly. Time spent chasing tenants could be used much more effectively and as a result many leave it to the professionals.

Late payment penalties

There are ways to discourage late payments which both landlords and agents can make use of. The obvious one is having a fee for late payments, many leases which have a financial penalty clause for late payment of rent. Another option is to charge a slightly higher rent but give discounts for on time or early payments.

By Andreas Riha

Tag: paying rent

Property Infographic: Landlords and Property Management

Payment of rent