Why is your rental ledger so important?

Why is your rental ledger so important?

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Thankfully, gone are the days when tenants had to pay their rent in cash at a real estate agency every week. These days, most tenants pay by direct debit, which is much more convenient and reduces the chance of late rental payments. That’s because having a solid history of paying your rent on time is beneficial for both renters and would-be home buyers.

Let me explain further.

A tenant’s rental payments are captured in a digital ledger, which records when rent was paid and to which date. While no agency can technically insist on a period of rent paid in advance, if your rent was consistently paid late, it can really count against you when you apply for your next rental property. Then, when it’s time to move, that ledger will become part of the reference your previous agency will provide to your potential new one.

If it shows you were consistently late paying rent, that will always count against you during the rental application process. An issue that often raises its head is share houses, where each tenant pays their share of the rent directly to the agency’s trust account. As we all know, not every person has the same cash flow or the same diligence in paying their bills, which means one tenant might always pay their share of the rent late. Of course, the problem with this is that it creates a black mark on the tenancy as a whole rather than just on the one person who probably has poor budgeting skills. So, if you live in a share house, don’t let a slack housemate ruin your credit. Instead, be vigilant and have one payment for the house set up with a direct debit, which will cut out part-payment problems and ensure the rent always arrives on time.

The rental ledger is also a valuable asset for tenants who decide to become homeowners because it can count as genuine savings. Plus, with a record of consistent and on-time payment of rent, a lender will consider your rental history while assessing your ability to service a home loan. However, if it was paid consistently late – the opposite will be true. In today’s technology age, ensuring your rent is paid on time has never been easier. Image is proud to manage thousands of tenants that maintain industry-low arrears records.

You can request a copy of your ledger at any time, and you should definitely check it before you move out because other agencies will be.

If you have any questions regarding your rental ledger, or any other property management related queries, get in touch.