Did you know paying your rent 1 day late can affect your rental history?
When tenants apply for rental properties in the future their rent history will show the discrepancy.
When tenants sign a General Tenancy Agreement it clearly states that rent must be paid on time or in advance.
If you pay rent even a day late you are in breach of your tenancy agreement and can risk receiving a breach which could result in receiving a notice to leave.
It is important to understand bank processing times to ensure that you allow enough time for your funds to clear.
If you pay your rent by BPAY or DEFT you need allow at least 1-3 business days for the funds to transfer and it’s important to not forget to take public holidays into consideration when processing transactions.
At the signing of the agreement all tenants are required to pay 2 weeks rent. We highly recommend that rent is then paid the following week after moving in to ensure there is a week buffer in case of public holidays, issues with pay dates or in case your situation changes.
Landlords have commitments with their mortgages and need to maintain their investment properties so they need the assurance that money will be in the bank in time for them to meet those commitments.
Renters need to take into consideration that their rental history may come back to haunt them when they’re ready to purchase their a home.
Lenders want to see rent paid on time when considering granting you approval for a home loan.
In fact most agencies and banks will request a copy of your rental ledger which shows how much rent was paid, what date it was paid and if it was paid on time.
Worst-case scenario, paying rent late continually can result in your lease being terminated and/or your name being placed onto a tenant database. Once you are on the database it can takes months or years before your name is cleared.
If you are having problems paying rent on time, it is vital that you communicate with your property manager so they are aware of the situation and can offer suggests to ensure late payments discontinue.
If you are a current tenant of Ray White Maroochydore and need assistance please contact our office on (07) 5443 2000 to discuss your options.