STAYING ON TOP OF RENT & BILLS - AND WHY IT’S SO IMPORTANT

STAYING ON TOP OF RENT & BILLS - AND WHY IT’S SO IMPORTANT

They say that there’s only two certainties in life - death and taxes. But in reality, rent and bills are right up there too. 

And they can often make you feel like you’re living a nightmare - a vicious cycle of invoices, accounts and overdue notices that just keep piling up. It can be tempting to block it all out, or deal with it like an endless game of whack-a-mole. 

But there’s good reason to take a step back, evaluate your situation and make it a priority to get back in control. 

Why? 

Apart from the obvious stress rent and bills can cause, failure to pay them on time can have unwanted - and unfavourable - consequences that follow you around far longer than you might think - even after you’ve settled your accounts. 

Here’s a few of the more serious things you may not have realised can happen if you consistently get behind with your bills: 

 Moving on… or maybe not. 

One of the biggest problems you might face may not come until it’s time to move.  

Every rental application asks for your history so new landlords can make an informed choice on which applicant gets the go-ahead to rent their property. It asks for referrals from past agents and landlords, as well as a copy of your Tenancy Ledger - the official document that keeps track of every single rental payment you’ve ever made - including the late ones. 

And you can’t just omit this information either.  

TICA is one database you don’t want to find yourself red-flagged on. Australia’s largest record, it keeps track of all tenancy payments. And it’s here that any of your unpaid invoices will show when a new landlord or rental agency goes looking. 

That doesn’t bode well for securing your next rental. 

Eviction affliction. 

Worse still, rent that goes unpaid for a longer period of time can actually see you evicted from where you are now. 

If you’ve let your rental payments lapse for 14 days or more, you’ll be considered in breach of your Tenancy Agreement and your landlord can issue what’s known as a ‘Form 2’. 

Form 2 is a formal, legally-binding document that outlines how you’ll move forward with your payments - in full or via a payment plan - and by when you need to have made them.  

If you’re unable to meet these conditions, you may be given your marching orders and find yourself out on the street – and a landlord can legally have the locks changed if you refuse to vacate.  

And even if this happens, the debt doesn’t magically disappear. You’ll still be legally required to pay what you owe up to that date. 

To Loan or Not To Loan. 

And if you thought unpaid rent or bills couldn’t possibly affect anything other than your tenancy, you’d be wrong. 

If any bills - including rent, water, electricity or gas - go unpaid, you can all but give up on securing even the smallest loan for a new car, holiday or that new dining table or comfy couch that caught your eye.  

That’s because loan and finance companies look into your payment and credit history before they borrow you the funds - and often ask real estate agencies to vouch for you.  

If you’ve proven to be an unreliable payer in the past, they’ll walk away from their offer. Brutal, huh? 

---- 

TAKING CONTROL - AND STAYING THERE. 

So how can you ensure you always stay one step ahead and keep that clean credit rating?  

It’s easier than you think. 

Making just a few small changes today can put you on the front foot tomorrow, and allow you to experience the peace-of-mind that comes with knowing you’ve got all your financials covered. 

Here are 7 of our handiest tips for beating the bill-paying blues: 

1. Get organised at home. 

Set up a dedicated in-tray or spot to keep all your bills together. Electronic bills can be printed, or you can scan paper bills and keep them in a folder on your computer. 

Additionally, make a list of all the dates your rent and bills are due (along with how much they’ll be - if in doubt, always overestimate a little!). 

Plug everything into a monthly calendar, spreadsheet or checklist and mark them off as you pay them - that way you’ll be across everything with a simple glance. 

But whatever you do, don’t avoid opening that envelope or email just because you’re petrified of what might be inside. Knowledge is power and if you know what expenses you’ve got coming up, you’ll be better placed to make sure you put the money aside. 

2. Set an old-school reminder. 

It may sound simple, but setting a monthly reminder on your phone that alerts you with a few days’ notice before your rent or bills are due can do wonders for your stress-levels. Take the time to plug them all in - just make sure you action them when they go off! 

3. Take advantage of online tools. 

Make the most of any digital tools or systems your property manager may offer.  

Some agencies offer online portals to allow tenants to view their official Tenancy Ledger and keep track of what they have and haven’t paid, making sure you’re across your payments history. 

It’s also possible to take advantage of your bank’s automatic payment system and set payments up to directly come out before they’re due. 

To support this, you can also set up a dedicated rent & bills account that direct debits a set amount each week, fortnight or month from your main account to make sure you always have the funds to cover anything that’s thrown your way. 

4. Bank it baby. 

Also get familiar with your bank’s usual processing timeframes, so you’ll know exactly when any payments you make to your property manager or landlord will land in their account, ensuring it has plenty of time to clear on (or prior to) the day it is due. 

5. The devil is in the detail. 

Take care to pay the exact amount you’ve been invoiced - and include any required references - so that payments can be easily matched up and processed quickly by your property manager or landlord. Payment amounts that vary from the invoice can often be missed in a sea of numbers being perused on a statement. 

6. Review & renew. 

 As much as we’d like it to be so, there’s no 100% reliable set-and-forget approach to rent and bills.  

Amounts fluctuate, billing details change and your account doesn’t magically fill itself with funds (although we really wish it would!). 

Make a point to check in on your account status regularly so you know you’ve got the cash to cover everything, and monitor your statements as they arrive to make sure you’ve not been charged incorrectly, or that payments didn’t bounce.  

7. Keep in touch. 

And at the end of the day, always remember that communication is key to keeping afloat, even in the tough times. 

If your financial situation changes or you’re finding it difficult to make payments, get in touch with your property manager, landlord or utility supplier as soon as possible. Although it’s their job to collect rent and/or payments, it’s also in their best interests to work towards a solution, whether that be a payment plan, reduced payment or another option. 

Although you might have a plan to pay all worked out in your head, if you keep these people in the dark, you could see the problem escalate. 

---- 

The importance of staying on top of your bills and rent can’t be understated. But by creating a good system that works for you - and sticking with it - you’ll reap the rewards long into the future. 

*All advice given here is general in nature. To ensure accuracy, we strongly recommend seeking independent, professional or legal advice - tailored to your specific situation - before making any decisions.