Coping with rental defaults

Published Feb 17, 2021

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Landlords are seeing an increase in late rents, reduced rents and non-payment.

Antionette McClean, rental administrator for Seeff False Bay and South Eastern Suburbs, says landlords should take steps to mitigate these risks.

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She advises landlords to:

- Open a separate account for the monthly rent and not operate debit or stop orders off it. This is because, if a tenant should pay late or default and the debit and stop orders are rejected, the bank charges the landlord a fee.

- Create a reserve fund to act as a financial buffer should the tenant default on the rent.

- Set aside at least one month’s rent to do annual maintenance on your property.

- As soon as a tenant breaches the lease in any way they must immediately be informed of the breach and the process required to remedy it.

- Get a professional to do a moving-in inspection instead of doing it yourself.

- Ensure all compliance certificates for the property are valid.

- Conduct regular interim inspections to ensure there are no surprises at the end of the lease term.

- Have personal liability insurance to cover any eventuality that might arise out of the tenancy

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