At Running Property, we pride ourselves on having strong systems and procedures in place. One of the most important procedures is our Rent Arrears Management Action Plan for tenants.
When a tenancy begins and keys are collected from our office, we sit down with the tenants and explain this process very thoroughly and ensure they are completely aware we have zero tolerance on rent arrears.
Obviously, we know emergency situations occur and can be quite compassionate however across the board our arrears policy is quite strict.
Once a tenant falls one day in arrears, they will receive a SMS alert advising them rent is now due. This SMS service will continue up until the tenant remains seven days in arrears.
On the eighth day the tenant is behind in their rent, unfortunately, we will be required to issue a Form 11 Notice to Remedy Breach.
This requires the tenants to remedy their arrears within seven days otherwise a Notice to Leave can be issued.
If the Notice expires, a Notice to Leave is issued requiring the tenant to vacate in seven days.
Unfortunately, offices that do not have strong systems in place for rent arrears will often find tenants falling into arrears which is difficult to recover. If the correct processes are not followed, insurance companies can decline pay-outs.
