Take a guess how many tenants are behind on rent payments. According to some sources, it's at least 20% of American renters.
Rent collection is a sore spot for landlords as much as tenants. It makes landlords feel like Ebeneezer Scrooge, and tenants feel like they're dealing with Charles Dicken's miserly penny-pincher protagonist. Is there any way to collect rent on time without bad feelings?
There is. Today, we take a look at timely and efficient rent collection for your properties.
Here are a handful of strategies to make the process smoother - and avoid making tenant relations look like A Christmas Carol.
1. Make Rent Collection Crystal Clear
Sometimes even good tenants are late on rent payments. Not because they can't or don't want to. Rather, because they don't understand their obligation.
It all starts with the lease. There's usually a clause that defines, clearly, when rent is due and how to pay it. In particular, it may include a grace period and late fees.
Some tenants mistake having a grace period when they do not. Or, they misremember the actual due date. In either case, there's a misunderstanding with the contract they signed.
Make sure your lease is crystal clear about when rent is due and remind tenants to read the lease.
2. Offer Convenient Payment Options
Your property might be great for a number of reasons. You are quick to do maintenance, responsive to tenants, and friendly at every turn. Are you making their rent payment experience easy, though?
Some landlords expect their tenants to make payments in checks. This is despite the fact that easy digital payment options allow tenants to pay for everything else online. For all you know, your rent could be the only time someone whips out their checkbook.
Consider using an online portal for online payments. They are easy to set up and easier to use.
3. Give Reminders
Some people are simply forgetful. They'd otherwise make the payment on time if not for a hectic schedule. Help them out with friendly reminders.
Consider using an automated reminder such as an email or text that tells them the rent due date is coming up. This could be a few days or a week beforehand. Chances are, that reminder is all they need.
4. Enforce Your Late Fees
When people pay their rent late, it's natural to want to forgive them for it and waive the late fee. While your intentions here are good, the result is not.
Waiving late fees or ignoring them entirely lets your tenants take advantage of you. Stick to the late fee policy even if they tug at your heartstrings.
Manage Your Investment Property with PMI
Rent collection is often a tricky subject, especially when tenants pay it late. Make your lease agreement clear, create convenient payment options, and remind tenants of upcoming payments. Otherwise, enforce your late fee policy - no ifs, ands, or buts.
PMI in Topeka supercharges your abilities as a landlord. We handle residential and commercial properties. Use our free rental analysis tool to get started.
