Liebenberg has five tips to deal with non-paying tenants:
1. Use an estate agent
The reality is that estate agents have access to tools that the average private landlord will not readily find. Firstly, they have far more sophisticated tenant assessment tools, more thoroughly prepared leases, legal resources and, most importantly, time to deal with these issues.
2. Sign a mandate
If you use an agency, ensure that you sign a written mandate with them. The mandate details what the obligations of the agency are towards you and the tenant. Most importantly, it should also outline the limits of the authority you grant to the agent in dealing with a non-paying tenant.
If you do not clarify these upfront, it may cause massive confusion and delays in dealing with a delinquent tenant.
3. Insist on a proper credit check
Insist on seeing the detailed credit check performed by the agency. Don’t just look at credit scores, but try to also understand the tenant’s debt position relative to their income and the rental you are asking.