We rarely, if ever have to suffer the bad fortune of dealing with rent arrears. I mean I’m not saying that it’s never happened, but it doesn’t happen very often and as I am writing this blog we have just passed this month’s rent date and again we have 100% rent received. So how do we do this? what is the magical formula, below are our top 5 tips to help you reduce rent arrears and only recruit the best tenants.
Do some due diligence BEFORE you allow the prospective tenant to view your room. We ask around 13 pre-qualifying questions through Go Tenant! the system is really easy, when a prospect applies for a room Go Tenant automatically asks them to complete a “Getting to Know you” form. The form contains around 10 pro forma questions that we have provided for you, but don’t worry you can change this and take away or add questions to it. The questions we ask are things like “Have you ever been in rent arrears?” By asking these questions we realise that some prospects won’t be honest, but the majority of prospects are, and it will filter out most of the unsuitable prospects. (Please note that this doesn’t replace the standard referencing that you should always conduct before offering a tenancy)
Take a Guarantor. This is really important and make sure that they are suitable and not just their “mate” or someone they have just met, it should ideally be a family member and where possible a homeowner. We rarely have to call upon the Guarantor, but it real helps as a deterrent. If this isn’t possible then we would insist of rent paid in advance, following the Due Diligence.
Take rent on the 1st of the month. This is so easy to do, and tenants never question it, even if they don’t get paid until the 28th or the 14th etc, they are happy to budget and manage their money to pay on the 1st. By following this simple step, you will only have to reconcile once a month! Which will leave you the rest of the month to grow your business!
Always Google your tenant! Wow, we so should have done this years ago, Google is just an awesome resource and you may find some things about your tenant that they haven’t declared, we did but it was too late! A follow on from this is to also check their social media pages it may show you some interesting things!
Don’t be too motivated by the money!! I know that sounds a little odd, but please let me explain. If a tenant prospect requests a move in that same day and they waft a big wedge of notes in front of you then STOP! Ask yourself why they are in this position in the first place, I know you need the money but please follow the above procedures FIRST. Yes, they may pay 3 months in advance but that may be the only money that you will ever get from them! Please don’t fall for the promise of cash up front, at least not until you have conducted all of your Due diligence. Download your Go Tenant! free trial now and let us help you reduce those arrears by attracting the best tenants! just click on the Go Tenant! button at the top. Happy Tenanting!