There's a lot going on around Christmastime and New Year's. It's hectic, chaotic even. Although it should be a time to celebrate and make cherished memories with our loved ones, for many people it can be the busiest and most stressful time of the year.
And it's no wonder when you think about what often happens in the lead up to, during, and even after the festive season. Things like shopping for gifts, juggling extra work shifts and having someone to look after the kids, traffic congestion and delivery delays, hosting guests, and travelling to visit family or for holidays – not to mention finding sitters for our precious pets!
Plus, it's usually a time when we spend way too much with all the additional costs thrown into the mix of everyday living expenses. Let's not forget the bigger electricity bills that hit us as we crank up the air conditioning to combat the Australian summer heat.
It can all get a bit much to handle. Unfortunately, the festive period is often when renters can get themselves into rent arrears – putting a black mark against your perfect credit score or rental ledger. Aaargh!
We get it, keeping track of everything and managing budgets can be incredibly challenging during this time. That's why we're "making a list, and checking it twice" for you, so you can be well prepared ahead of time and not fall into the usual traps that can lead to Christmas rent arrears.
Are you ready to get organised and maintain your impeccable tenant and credit history? Let's go!
Here's a quick overview of our top tips to avoid Christmas rent arrears:
If these simple steps sound like they could help you, read on for more details!
If you aren't clear about how much you'll need to spend, how can you set a budget? Conversely, how do you set a budget when you don't know exactly what you'll need to buy? It's a bit of a chicken-and-egg situation.
Our advice is to start with making lists of Christmas expense groups, gifts and groceries to have the full picture of what needs to be considered in the budget. Lists are great for keeping you from straying away from the path and purchasing unnecessary items.
When you have your lists, then you can set a budget. Adjust and re-cut the numbers as needed. Remember, budget what you need to spend and can afford to spend, not what you'd want or like to spend – spending money that you don't have will simply get you into trouble!
Check out our handy pointers on Christmas planning, budgeting and making that budget stretch further.
Top tip: Even after you've set your Christmas budget, it's important to track expenses so you know whether you're sticking to your budget and not overspending. Be savvy with your spending by looking out for good deals or ways to save money on shopping.
You already know that the Christmas season will require a pretty hefty amount of funds every year. And it's often not an amount of money that we can cover off with a single pay check or pool together within a short period of time. Therefore, it might be a good idea to be putting smaller instalments into a 'Christmas bucket of funds' throughout the year.
Having money separated only to be used for your Christmas expenses will help you to track spending and stick to the budget you've set.
It also means that you won't be digging into other pots of money that you need for important things, like paying your rent and bills!
Top tip: We recommend that everyone has an emergency fund for whenever life throws you a curve ball. You'll breathe easier knowing that you have money to cover unexpected expenses – without derailing your budget for other expenses, having to dig into your personal or home loan savings, or needing to take out a loan to cover costs.
You may not have enough time to start your business aspiration just yet, but the lead up to Christmas and the holiday period can be a great opportunity to get a bit entrepreneurial.
Examples of a few ways to earn extra cash include:
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While keeping on top of your rent and bills isn't anywhere as interesting or exciting as keeping on top of your gift shopping, it's much more important! Having the mindset of "I'll get to it later" or "I'll wait for the reminder" isn't foolproof, especially during this busy time of year when deadlines can easily be missed or forgotten entirely.
Chances are, by the time you circle back after all your Christmas shopping's done, you might not even have enough money left to pay your rent and bills on time. You also risk having a black mark placed against your tenancy history or your credit score taking a hit.
That's why it's important to always pay your rent and bills first to avoid being caught short (and late!) down the track. If you're someone who's a bit of a spender, it may be wise to pay your bills as soon as you get them, so it can be one less thing to think about and remember to take care of later.
If you get stuck, here's what you can do if you can't afford to pay your rent.
Top tip: Do you get bill shock whenever your gas or electricity bill comes in? They can be especially scary in the summer and winter months when air conditioners and heaters get a real workout. You can kill big bills and avoid budget blowouts by using RentPay's bill smoothing feature.
There are several public holidays during the festive season that can impact banking payment timeframes and being able to reach someone for help. Think: Christmas Day, Boxing Day and News Year's Day. Office closures and people travelling away on extended holidays will also impact when you can contact someone.
It's important to know whether your property management agency will be closed on any dates or when your property manager might be away on leave, and if there's someone else you can contact instead. For example, if you can't make a rent payment or need an emergency repair, do you know who you can call?
It's even more critical to check your rent payment arrangements to ensure that your rent is paid into your landlord or property manager's bank account on time. Any time that funds are received after the due date is considered a 'rent arrear', meaning it could put you in your agent's 'bad books' and – worse – leave a black mark against your tenant record or negatively impact your credit score.
That's why taking the time to review your RentPay payment schedule before the Christmas and New Year period might just save you from some unnecessary grief. We designed the RentPay payment platform to provide total convenience, flexibility and choice – so make sure it works for you!
Another good idea is whenever you get a new RentPay notification, like a tenancy bill or rental adjustment, it'll only take a few moments to complete the required action. Getting something ticked off as soon as it comes in means one less thing on your to-do list and not wasting time with double handling!
If you're not sure about how the public holidays might affect you and your RentPay payments getting to the agent on time, or you need help with adjusting your rent schedule or payment method, please contact our friendly customer service team on 1300 797 933.
Top tip: If you've been guilty of late or missed payments before, it may have impacted your credit score and ability to successfully apply for future borrowings. RentPay has an optional Scorebuilder feature that can help you to build up your credit score just by paying your rent on time.
Some people like to apply a strategy whereby they make payments ahead of time to avoid any cash flow crunches come Christmastime. It can also make your life easier if you have planned holidays and don't want to worry about paying rent and bills while you're away.
Getting ahead can be done by paying small, additional amounts (part payments) early to even paying an extra full payment (lump sum) way before it's due.
However, this strategy does require some planning and good budget management skills (and discipline, too!), but what's the price of no rent or bill stress and peace of mind?
If you've managed to pay rent in advance, it can help take the pressure off and even allow you to skip a rent payment since you're already ahead. You could even pay a month's rent in advance to make the most of the end-of-year festivities knowing that your rent in December's all sorted.
Top tip: Building up a healthy rent buffer in your RentPay account is a good strategy to always have some funds stashed away to pay your rent. It could be a lifesaver for those who work casually with a pay check that varies from week to week. Or maybe the money you were going to use to pay your rent went to an unexpected expense instead. RentPay's buffer has got your back! Why not build up towards a 'rent-free' Christmas buffer?
Sometimes we find ourselves under sudden hardship, with little to no warning. Other times, we can anticipate certain situations and get ahead of the brewing issue before it hits.
Staying out of someone's 'bad books' and not blindsiding them with any unexpected, nasty surprises will both go a long way in making sure that your situation will be looked upon favourably.
It's why we always recommend that you nurture a positive relationship with your landlord or property manager and keep an open communication channel . They're far more likely to be empathetic and lenient if you have a good relationship with them and have always been upfront about your circumstances.
So, out of courtesy, we suggest that you let your agent know as far in advance as possible whenever you know you may experience hardship and are unable to pay your rent. Hopefully, they'll be willing to give you an extension or come to a reasonable arrangement with you.
Top tip: Maintaining a mutually beneficial relationship with your landlord and property manager might also mean that you receive preferential treatment, like more prompt service after submitting a maintenance request – as well as other positive side effects from keeping good relations, underscored by your conduct as an ideal tenant!
It helps to be clear about the conditions of your lease agreements and your rights as a tenant. So, make sure you're familiar with your tenancy terms and what's expected of you. If you're unsure about anything in the lease agreement, make sure you ask your landlord or property manager to clarify.
No matter where you live in Australia, there are tenancy support services available in every state and territory that can provide advice or assistance if you're having trouble with renting or you're experiencing issues with your lease agreement. These services are usually free of charge, so make sure you reach out for help whenever you need it.
Understanding your rights as a tenant is the first step in resolving rental disputes. By seeking help from the right resources, you can ensure a fair and just resolution to your issue.
The Christmas and New Year period is already stressful enough, so you wouldn't want to add any rent arrears stress to put a dampener on your festive celebrations.
While it might take a bit of time to forward plan, check and action a few tasks in following our simple steps to avoid Christmas rent arrears, your efforts will be rewarded by giving you peace of mind that you rent's all covered.
We hope you enjoy your Christmas and New Year festivities!
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