When a tenant is not paying rent, it doesn’t just create frustration. It chips away at your investment returns, adds stress, and in some cases, costs you thousands in legal fees. For landlords, prevention is far better than chasing arrears.
At Mclaws Property, rent collection is more than just a process; it’s a strategic approach.
The Financial Impact of Rental Arrears
Even one missed rent payment can snowball into a larger issue. Suddenly, you’re covering mortgage repayments, council rates, and maintenance costs out of pocket. Add in the emotional strain of a tribunal hearing, and it’s clear: arrears are more than an inconvenience. They’re a liability.
If the situation escalates, landlords in NSW have legal rights. As outlined by NSW Fair Trading, “If a tenant falls more than 14 days behind with the rent, the landlord or agent can serve them with a non-payment termination notice, giving them 14 days to leave the property.” But getting to that point means you’ve already lost time and income.
The Importance of Proactive Management
A strong rent collection process doesn’t start when the rent is late. It starts the day a tenant signs the lease.
At Mclaws Property, we use strict rent monitoring systems that flag overdue payments the moment they occur. There’s no “wait and see”. We follow up immediately. This early action sets expectations and prevents long-term issues.
We also ensure tenants are fully educated upfront. They understand how rent is tracked, what constitutes a breach, and how non-payment impacts their rental history. It’s about setting a professional tone from the start.
Screening Tenants to Avoid the Issue
Most rental arrears start with the wrong tenant.
We conduct thorough screenings for every application, including employment verification, income assessments, and rental history checks. We go beyond simple checklists, asking targeted questions and identifying potential risk factors to ensure we never compromise on quality.
A strong tenant selection process is your first line of defence. It prevents short-term fixes (like accepting an underqualified tenant out of urgency) that lead to long-term problems.
Support vs. Strictness
Dealing with rental arrears isn’t just about sending warning letters. It’s about balancing empathy with firmness.
Life happens. Sometimes a tenant hits temporary hardship. In these cases, we offer solutions like repayment plans or adjusted payment methods. According to NSW Fair Trading, “If the tenant is experiencing hardship, a repayment plan could be set up where the tenant pays the landlord the outstanding rent over a period of time, on top of the normal rent payments.”
But we also maintain clear expectations. Tenants know we act fast. This respectful firmness ensures that payments remain a priority, without damaging the relationship.
We Prevent Issues Before They Start
At Mclaws Property, our rent collection system is built to protect your income. Through proactive monitoring, clear communication, and strategic tenant selection, we dramatically reduce the risk of arrears.
When it comes to rent payments, proactive intervention is key. We believe the time to address non-payment is not in week three, but on day one, reflecting the meticulous attention and precision applied to every property under our management.Want to know more about how we keep arrears under control? Book a free rental appraisal with Mclaws Property today.