Seven habits that cut rent arrears

A tenant in arrears is usually not a tenant refusing to pay. It is a tenant who paid late once, was not chased, and learned that late is acceptable. Arrears are a process problem far more often than a character problem.

1. Remind before the due date, not after

A message three days before rent is due is a courtesy. The same message a week after is a complaint. The first one gets paid; the second one gets an explanation.

2. Use one payment channel

Every additional way to pay is an additional way to lose a payment. One paybill or one account number, printed on every reminder, means no tenant ever says they sent it somewhere else.

3. Receipt on the same day

A tenant who is not sure whether their payment landed will wait to be asked before paying the next one. A receipt closes the loop and removes the ambiguity entirely.

4. Know the balance per tenant, not per building