It’s that time of the month again – time to follow up on rent and other arrears, and ensure that all the mandated arrears management activities that you are contractually bound to perform are carried out – diligently, and without fear or favour!
I was reminded in a telephone conversation this morning of the potential consequences of sending out the incorrect LOD . . .
Sending out the incorrect LOD could result in you having to restart the entire prescribed process and having to wait out the prescribed notice period. In most cases (i.e. fixed-term leases) this is another 20 business days (more or less a month), so by the time you reach the correct deadline date another month-end has passed.
Of course, if the problem is resolved and the overdue amount is settled in full, there is no problem. However, where the arrears are NOT settled in full the problem escalates significantly as another month-end would have passed.
This is not only frustrating, but may also result in unnecessary delays for your landlord. Of course, when it comes to delays in arrears-related actions, delays often cost your landlord additional losses.
To help you make sure you use the right LOD, I have put together an LOD Cheatsheet for you, which you can down by clicking here.