Tuesday, 25 August 2009

keeping a good tenant happy

I thought that you might like to hear a story about a good tenant of mine - she has been my tenant for 3 years now - who had a recent payment difficulty which basically meant she couldn't pay me the months rent.

The lady in question has had a chequered job history and as a result she has very rarely paid me on the due date of the first of each month. However - she has always paid me before the month has ended. She causes me no trouble whatsoever and keeps herself to herself.

A couple of months ago, her cheque for that months rent (which was 2 weeks late as usual) was returned as 'bounced' by the bank. This simply meant that she was in arrears for £570.

How did I handle this?

Firstly, experience has taught me that with good tenants (I don't have any bad tenants by the way - my worst could probably be classed as 'OK') you should value them. I know of many landlords, who, if given an arrears situation, would threaten the tenant with eviction etc....not the smartest way to operate as far as I am concerned. Its best to think your approach through first - to suit that particular person. Antagonising a bad situation is not the wisest move - you need to have a plan in order to minimise potential problems.

I took the view that firstly I should speak to her in a civil and friendly - and hopefully understanding way..

I rang her and she was highly embarrassed and explained that she was temporarily 'in a fix' financially and was really sorry. She explained she could make next months rent - but as for this month she was going to have to downgrade her car and this would put her in a position to then be able to pay me the rent for the month she had drifted into arrears.

However, I made an on the spot decision.


I wasn't desperate for her rent monies, and I knew I would get it as soon as she could find it. I also didn't want her stressing herself out more by making a knee-jerk reaction to sell her car in order to find the rent. I therefore offered that she could spread the £570 over 6 months. Don't get me wrong - i would obviously have prefer ed the rent there and then - but by being party to her having to either downgrade, or even give up her car, even though it wasn't my fault - did not seem the right move.

She was delighted at this - but also a little proud to have to accept what she considered charity. However, we left our arrangement at that.

I was paid the following months rent on time, and yesterday morning I received a surprise cheque through the post for £570 - being the arrears in question, and a note to say she had borrowed the money off a close family member and would repay them over time.

She also mentioned how she was absolutely delighted that I had not turned against her when she was down - and that she would always remember it.

So, I consider that I have come out of this better than before the arrears situation. Fortunately for me, there aren't many landlords who would be so accommodating as I was. All I did was do the common sense thing - be patient and discuss a solution.


I know personally of many landlords who have a 'no messing' policy with arrears - they would have simply commenced proceedings against her without trying to sort out a compromise. this way, in this instance their would have been no winners.

Shouting and threatening the tenant would not have got me my money - so a different more understanding approach was required. I now feel that her estimation of me has increased - which in turn means that a customer of mine is probably more likely to stay renting my house than before.

These situations to crop up from time to time - usually in relation, quantity wise, to how many rental properties you hold as a landlord. It is important that a potential new entrant - who is pondering entering into this business is not only aware of the potential 'hassles' that crop up - but just as importantly - how they can be negated quite easily with some common sense and understanding.



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