Why is your rental ledger so important?

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 also reduces the chance of late rental payments. That’s because having a solid history of paying your rent on time is beneficial for bother 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. When it comes time to move, that ledger will become part of the reference that 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 are 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 with 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 house mate ruin your credit. Be vigilant and have one payment for the house set up with direct debit, which will cut out part-payment problems and make sure the rent always arrives on time.

rental ledger

For tenants who decide to become homeowners, the rental ledger is also a valuable asset 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 during its assessment of your ability to service a home loan. However, if it was paid consistently late – the opposite will be true.

In today’s technology age, it has never been easier to ensure your rent is paid on time, 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.

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