5 Foolproof Tips for Paying Rent on Time
Have you ever checked your bank account to find your rent hasn’t gone out, or your wages haven’t landed in your bank account on time? Perhaps the time has slipped away on you, and you’ve lost track of what day of the week it is (and forgotten to pay rent on time). We’ve all been there.
Thankfully, there are several steps you can take to help you stay on top of rent payments and reduce the stress and hassle associated with being behind on rent. Without further ado, here are our top five foolproof tips for paying rent on time.
1. Set up an automatic payment
Even if you prefer to pay most of your bills manually, it's a good idea to set up an automatic payment for rent. This will ensure it goes out of your account automatically, on a regular basis without you ever having to lift a finger.
Tip: Try setting the automatic payment to go out the day before rent is due. This will ensure it arrives on time and allows room for error if, for some unforeseen reason, the automatic payment fails.
2. Set up a calendar reminder
If setting up an automatic payment isn’t an option for you, make sure you have a weekly rent reminder in a calendar (a digital reminder on your phone is best).
Tip: If you’re in the habit of dismissing calendar notifications on your phone, try setting a silent alarm instead. Make sure to label it and set it to repeat at the same time every week.
3. Make sure everyone knows when to pay you
If you’re in a flatting situation, chances are, one person has been delegated the responsibility of managing rent payments for the group. If that person is you, you’ll know there’s nothing more frustrating than waiting on others to pay their portion of the rent. Shared calendars are a great way to ensure no one forgets when rent is due.
It’s important to remember that tenants named on the tenancy agreement are jointly & severally liable for paying the rent. Meaning, if one tenant causes the rent payment to be missed, this will mean that all tenants are liable for the overdue rent. Having a clear system and reliable reminders in place will reduce the likelihood that you will have to spend time and energy nagging your housemates.
Tip: Not everyone is tech-savvy. A good, old-fashioned, calendar on the back of the toilet door works wonders in addition to a digital reminder on a shared calendar (e.g., Google Calendar).
4. Check accounts regularly to make sure payments are made and received
Sometimes payments fail to go through #technologysuckssometimes. It's always a good idea to double-check your accounts on a regular basis, particularly on days when big bills are due, to ensure nothing has gone amiss! If there are any issues, you can get them sorted out sooner and minimise stress for everyone involved.
5. On holiday? Set aside funds in advance to cover rent and bills while you’re away
Some people don’t get paid while they are on leave from work. If this is the case for you, make sure you have set aside enough money to cover rent while you’re away.
What happens when you don't pay rent?
Mistakes happen! At Propertyscouts, we understand that. So long as you rectify any missed payments in a timely manner, and it doesn't become a regular occurrence we won't take things further.
If you don’t pay rent on time, our system will register it as an 'arrears'. We will notify you immediately if a payment isn't received and work with you to rectify the issue and prevent it from happening again. However, if you fail to correct missed rent payments or it becomes an ongoing issue, this could result in formal Tenancy Tribunal action.
What should you do if you know you won't be able to pay rent on time?
As mentioned above, we understand that sometimes your circumstances are beyond your control. If you know you won’t be able to pay your rent on time, get in touch with your property manager and give them a heads-up! Don't wait until you are behind on rent to make contact.
Property managers are human too. We can be empathetic and accommodating if you get in touch early. Doing so gives us more time to discuss your situation, and we may be able to come up with an arrangement that will reduce stress for everyone.
At Propertyscouts, we don’t just care about landlords, we care about tenants too. If, at any stage of your tenancy, things aren't going to plan, please get in touch. Little issues like unpaid rent, for example, can very quickly escalate and we’d rather work with you than against you! We always strive to be efficient, treat you fairly and honestly, and be as helpful to you as possible.
DISCLAIMER: The above advice is written by Propertyscouts New Zealand (2020) Limited and is intended as a broad guide for educational purposes only. The advice should not be regarded as legal, financial, or real estate advice. In all instances, you should make your own inquiries and seek independent professional advice tailored to your specific circumstances before making any legal, financial, or real estate decisions.