Property Management Blog

Receiving My Rent Monies

Sarah Pewhairangi - Thursday, August 23, 2018

When do I get paid my rent?

Property Management Specialists disburse rent to landlords on a fortnightly basis, however, we can disburse your rent to the nominated account of your choice monthly if it's preferred.

How do you collect the rent?

We organize for your tenants to set up an AP (Automatic Payment) which goes into our Trust Account which we monitor daily.

What happens if my tenant does not pay the rent?

Paying the rent is always a voluntary action on behalf of the tenant. We can never force a tenant to pay their rent. Even a tribunal can only ‘order’ a tenant to pay but can never physically force them to pay.

However, we adhere to a Zero Tolerance policy towards rent arrears. If a tenant does get behind on their rent payments, this is the process we follow.

The Residential Tenancies Act 1986 sets out the rights and responsibilities of: 

2 Days Behind- Property Management Specialists will issue a Notice to Remedy Breach giving your tenant 14 days to comply.

4-5 Days Behind- Failure to comply will result in an application being filed for termination of tenancy under S54 of the Residential Tenancies Act.

The actual time taken to achieve termination varies according to the length of time the Tribunal takes to arrange a hearing. This is out of our control but can be up to two weeks in some cases.

Unfortunately, the bond (3 to 4 weeks rent) seldom covers the shortfall in rent. 

In this case, only if you have landlord insurance will there be a reasonable prospect of covering the rent payment shortfall, in the case of your tenant defaulting on their rent payments.

Without landlord insurance, the chance of recovering owed rent monies is minimal. If you have no protection for your rent payments, the problem is further compounded by the fact that the bond will probably be exhausted with owed rent. You will then most likely have cleaning up and re-letting costs, as well as outstanding monies like water owed by the tenant. 

Therefore, without landlord insurance, this process can be quite financially damaging.