Never Miss Rent Collection From Your Tenants Again
As a rental property owner, one of the most frustrating situations you can face is when your tenants are unable or unwilling to pay rent on time. This is a bad scenario for several different reasons.
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- It sets a bad precedence for your tenants
- It can cost you money
- You are now in a position of “debt collector”
- This could be the first step in an abandoned lease
- It causes additional stress for you as the property owner
The good news is, there are steps you can take to ensure you avoid this situation as much as possible. If you are willing to put in some preparation on the front end, you can put yourself in a position where you will never miss rent collection from your tenants again.
Good Screening Upfront
On time rent collection starts with good tenant screening practices on the front end. Too often, in a landlords rush to fill a vacant property, the necessary steps of checking and double-checking a potential tenants application is excused. Be diligent about checking an applicant’s credit, criminal background, rental history and employment history. To be sure, your own personal judgment will play a role in choosing your next tenant, but don’t make the mistake of overlooking the obvious.
Solid Communication
It’s up to you make sure that your tenant is crystal clear when it comes to the expectations of paying rent on time. Communication is a two-way street, and it is sometimes easy to think that just because your lease agreement states when rent is due and what the penalties are for paying late that your bases are covered. To truly know your tenant is clear, take a minute to review rent payment policies in the lease either face-to-face or over the phone. This verbal acknowledgement definitely helps hold your tenant accountable.
Early Bird Discounts
Incentives often work better than penalties and the same case can be made when it comes to paying rent on time. Offer your tenants a discount on their rent when it is paid early. You’ll be surprised at how motivating that can be. Be sure that you set your rent accordingly so that your costs are covered when the tenant earns the discount.
Online Payment Options
You may find that tenants are able to pay rent on time when they can do so online rather than having to mail a check or money order. In this day and age when so much bill paying happens online anyway, some tenants may get tripped up with having to write a check, find an envelope and a stamp and send rent via mail. Look into online payment options as an alternative.
RPM Pinnacle handles rent collection for all of our clients so that they don’t have to. Find out how we can help you by giving us a call at 480-Rentals.
