➤ Rent Collection and Rent Arrears


When is rent in arrears?
If the tenant’s rent runs out today, it will be in arrears (overdue) tomorrow. But it will only be one day in arrears, even if the agreement is for rent to be paid two weeks in advance.

This process is our “standard” process, but we will speed up the process for repeat offenders.

Day 1
We will send the tenant a text with details of the overdue rent payment. The text is automatically logged in our property management software. Any response is also logged. Generally, this reminder will encourage the tenant to pay the rent due. We may also follow up with a phone call. We will call out to the property to pick up the rent if required.

Day 3
If the tenant has not responded, or an agreement has not been made for payment, we send them a 14-day notice telling them the amount of rent in arrears and giving them 14 days to pay. This is a legal requirement before you can make any application to the Tenancy Tribunal.

Day 7
An application is made to the Tenancy Tribunal to order the tenant to pay the rent arrears if it has still not been paid by now. The cost of application is $22 and this is paid by Hamilton Property Management as part of the service. We feel it is a small price to pay to ensure that you as the landlord get all rent that is due.
In the order application, we can ask that the tenancy continues while rent arrears are paid, or we can ask for an order to:
- End the tenancy if the arrears are not paid, and
- Release the bond if the arrears are not paid

The Tenancy Tribunal will initially try to resolve the dispute by mediation. Both parties have to agree to this. Most mediations take place via phone.
The mediator will identify the issues and try to reach a workable solution. If an agreement has been reached, the mediator will write a legally binding and enforceable order to give effect to the agreement (e.g. payment for the arrears, termination of the tenancy). We won’t need to go to the Tribunal if we reach an agreement in mediation.

A Tenancy Tribunal hearing will be scheduled if we have not reached an agreement with the tenant. This could unfortunately be several weeks wait.

That is why you use Hamilton Property Management to look after your property. Our fee includes REAL Landlord Preferred (or Multiple Tenancy) Insurance cover which reduces the risk of you missing out on rent.


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