Paying rent during the Christmas holiday season can sometimes be a problem for tenants. It’s an unfortunate situation but history shows that rent arrears can sometimes increase dramatically during this period. I suppose it is simply that some tenants seem to believe that because it’s this time of the year they have different priorities, e.g. Christmas presents, Christmas parties and holidays. Paying the rent just may not be at the top of their Christmas to do list!
With this in mind, we at Investors Direct Property Management, have already started putting plans in place to prevent this happening with our tenants this year. We are proud of that fact that our arrears rate is always low, which is a good thing given it’s one of the most important considerations when owning and managing an investment property.
Our regular arrears rate currently stands at under 1%, which is considerably less than the industry average, so we are understandably quite pleased with that. But what we are focusing on right now is ensuring that these 1% of late payers don’t become even later during the Christmas season!
We have already asked a number of tenants to try and pay an additional week’s rent early in December so that they aren’t caught out as Christmas draws closer. People can get carried away with the festive season but if they have already paid that extra week’s rent, it can take the financial pressure off them and that’s really important. We’ve also been speaking to a few of our tenants last month and suggesting they pay rent weekly but pay a little extra each week, so that they will also be either up to date at this time, or even a little ahead. (We subtly suggested that the Christmas season will a lot more ‘jolly’ if their rent is paid and they know they have a roof over their heads!)
We aren’t trying to being mean or unreasonable – it’s simply a way of working with our few problem tenants to try and help them manage their finances, pay their rent and reduce the pressure, so that they can actually enjoy the holiday season. And that means that our landlords will too, and we will also!
In a perfect world, no one would ever be in rental arrears and every tenant would pay the required amount absolutely on time, every month. But sadly, it’s not a perfect world, especially at Christmas time. So we are doing what we can now, to reduce the potential for late payments during what should be a joyous time of year!
The Investors Direct Property Management team wish you a very happy holiday season and a very prosperous New Year!