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Best practice in arrears management

  • Tags: Property Management
VIDEO TRANSCRIPT

Host: Tell us how do real estate offices usually measure arrears.

 
Dot: David, traditionally we have to adhere to the Residential Tenancies Act (RTA) so the RTA says that when a tenant is 8 days in arrears, we can issue the notices. So according to them, when they’re 8 days in arrears that means we can act.
 
Host: So how does First National Palm Beach handle this vital aspect, of managing properties?
 
Dot: We’re very proactive. We start at day 3 an SMS. Day 4 an SMS. By Day 5 – we’re on the phone; we want to know why the tenants can’t pay their rent.
 
Host: Still there must be some things you can point to?
 
Dot: Very proactive leasing. Having a large pool of applicants to choose from. Really scrutinising those applications very, very well. As I said last month we took 71 applications and only accepted 23 tenants. So that’s a fairly large ratio of applications to accepted tenancies. Also keep in mind the 80/20 rule. Traditionally you’ll have 80% of your problems with 20% of your tenants. So if you can manage that 20% and make sure that your tenant quality selection is good, then you can usually manage your arrears very well.
 
Host: So there you have it, First National Palm Beach’s point of difference.  Best Practice in Arrears Management
palmbeachfn.com.au
First National Palm Beach
15 Palm Beach Ave Palm Beach, Queensland 4221
Phone: 07 5559 9600
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