Property Renting Tip #8: Late Payment from Your Tenant

It is important to know what you can and cannot do when your Tenant is not able to pay the rental on time.

First of all, convince your Tenant to use GIRO (General Interbank Recurring Order) or a Standing Order with the bank to transfer the rental payment to your bank account monthly.

You can indicate this requirement in the Tenancy Agreement (TA) and explain to them that this will free them from the hassle of having to do rental payment transactions every month, and they will not forget to pay the rent when they are travelling.

Nevertheless, if your Tenant still chooses not to pay on time and is late for more than seven days, you can impose a late interest charge of up to 12% annually and are also entitled to enter the property and terminate the tenancy.This should be indicated in the TA and discussed prior to entering into the contract.

By Eileen Tan and Ui Wei Teck, property investors and authors of Enjoying Mid-Life Without Crisis. This tip and dozens more are from their book.

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