Personally I start taking action once the 1st month is in arrears. I ask them when is their pay day during tenancy, I give them 3 days grace period, then it is time to start calling to remind them.
5 years ago I had this British expat tenant that worked here. He was good for 6 months, paid on time. Then he said he was out of job but would be starting to a new one soon so give him some time.
2 weeks passed, I asked him to pay half. He did not pay. 3 days after that call I happened to be at TTDI he was there having a blast at one of the pubs, clearly having loads of fun with 3 or 4 chicks hovering around him. I just observed, he wasn't aware I was watching or couldn't give a toss. Then as he left, I checked out what car he was leaving in, it was a 2 month old BMW (mind you it wasn't a 318i, it was a brand new M3 with a 2 digit plate) and I did some digging around turns out it was his car registered to his name.
Next day I gave him a call asked him about rent, he said he was in an interview would get back to me. He did not get back to me.
A month had passed by, I gave him a call, he said he was still between jobs. I told him he should consider giving up that M3, he hung up on me.
The next day I called up his office, asked if he was around, they connected me to him, I hung up on him.
Next day I went with 2 gangsters to his office, asked for him, he came out. I told him congratulations on his new job. Asked him when he was settling the rent arrears. He told me to F-off and what was I going to do if he didn't pay. I told the receptionist its an absolute pity she worked for a boss like that. We then left.
I waited till it was his pay day, sent 6 big sized gangsters to wait near his car. When they saw him, they told him to pay up the arrears, then sign a letter stating that he was breaking the tenancy agreement and moving out straight away. They gave him an hour to pack his personal belongings and move.
Oh yeah he even paid their "fess" and quickly left. He only took his clothes, gave him 7 days to collect his stuff but everything he left with remained.
You could call me an arsehole or wanker on this but better to be one than be taken on a ride by a debtor or tenant of these kinds.
Having said that there are times where people are genuinely in need of help. 4 years ago, I had this tenant a family from Sweden with 2 kids aged 2 and 4, she was also 7 months pregnant. They were 18 months into the tenancy and one day the lady called my missus to inform that they were having difficulty to pay rent and whether we could help them, she said we would meet them at the condo later that evening to explore what could be done. We showed up, discovered 9 of the 10 bulbs in the living room had been removed, no air conditioners switched on despite it being hazy at that time, same story in the kitchen 5 of the 6 light bulbs been removed and the refrigerator been switched off. I asked what the heck was going on, they said they had to cut back drastically so removed all the bulbs, switched off all air conditioning and stopped using the refrigerator since they only ate bread, instant noodles and fruit or vegetable they could buy at half price. He said he walked from the condo in Bangsar to his office at KL Sentral as could no longer afford parking or fuel or to repair the car as the alternator had spoilt.
I asked what had happened, he said they lost a case with the tax office in Sweden, as a result they seized all their savings and assets, also since they were paid by a company based in Sweden into a Swedish bank account, the tax office had 1st priority to garnish wages to settle the tax arrears. They said after all the deductions they had RM600 left. They felt too shy to ask for any help but decided it was only fair to let us know since we are the landlord and they understood if eviction was on the cards. I asked him why he did not pay his taxes knowing they come from a country that tax offices have such strong powers, they claimed the tax office made a mistake, then told them to pay first before submitting an appeal, they did not have the money to pay upfront, therefore the tax office turned their life upside down.
I cut them a lifeline, I moved them to a smaller and less expensive condo I had that was newly vacated, told them it had not been cleaned. They cleaned up both old place till it was spotless and also the new place then they moved in. I gave him an old bicycle, every week would send milk, cheese, vegetables, pasta, cereals and cans of tuna, also gave them RM1000 cash each month. When their baby was due, they went to the government hospital to deliver. I gave them RM2000 told them they could do it and told them to eat properly, I helped them with the electric bill each month also.
On the 7th month, they told us they had paid off the tax office, now things were back to normal. He paid the month's rent and asked if he could repay me RM1000 per month for the 6 months they been living rent free. I told them pay what they can afford. On the 18th month I told them they had more than repaid us.
They still rent that condo. Ever since then, each time we WhatsApp our tenants that we have a newly vacated condo it isn't too long before one of their countrymen contacts us asking to rent it.
I'll gladly help people like that Swedish family but definitely not that Brit who were taking the piss.