Tired of missing payments? Having trouble getting your tenants to keep up with their rent? We’re here to help with a list of five sure ways to collect rent on time. You don’t have time to deal with the inconvenience of missing or late payments, and we think that being proactive can take the struggle out of getting timely rent. Here are five ways to collect rent on time!
1. Do a thorough screening in the beginning
An in-depth tenant screening in the very beginning is one of the best strategies for making sure you’ll collect rent on time each month. Check your tenants credit history, run a background check, and speak with all references provided. After utilizing all the tools at your disposal, use your best judgment on each tenant.
2. Offer automatic bill pay
One of the best ways to ensure that rent will be collected on time each month is to set up automatic bill pay. This can be done in a variety of ways, but you’ll need to check with your financial institution to get started. With automatic bill pay, rent will be drafted out of your tenant’s account automatically each month. This saves time for both you and your tenant!
3. Explain and enforce the rules
We can’t stress how important this is. Your tenant needs to be fully aware of his rights and responsibilities, including the consequences for not making timely rent payments. Explain the rules before the lease is signed and when the lease is signed, and make sure your tenant has a written copy of the rules. If a tenant is late with their payment, then you need to enforce those rules to stop the problem right away.
4. Charge a late fee
Charging a late fee is a great way to let your tenants know that you mean business. Thwart late payments by plainly stating a late fee, and always adhere to that policy!
5. Communicate as soon as rent is late
Even if you offer a two week grace period, there’s no rule for communicating when the bill is late. If rent hasn’t been paid on its due date, call your tenant, send him an e-mail, or put a letter in the mail. Remind that his payment is late, how long the grace period is (if there is one), what the late fee is, and what the consequences for non-payment past the grace period are. While you might not get your payment on time, you’re more likely to get it sooner than later with this strategy!
Getting your rent on time every month is a huge goal, and when landlords are having trouble collecting their rent on time, we find that a few proactive steps can make all the difference! Try out the above listed five sure ways to collect rent on time to make every month a lucrative one!
Marina Shlomov, a managing partner at ALH|Podland Realty & Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at www.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube, Bigger Pockets and REI CLub and LinkedIn.
