The pandemic and economic slowdown have been hard on everyone, renters and landlords alike. Just last year, a whopping 15% of US renters weren't current with their rent payments.
Rent collection is vital to make a return on your investment. The situation has improved, but many tenants are still failing to pay on time. What options does a landlord have to ensure timely payments?
In this guide, we take a look at rent collection strategies to keep rent collection on a consistent schedule.
Rent Collection Automation
Sometimes, tenants don't pay on time simply because they forget. There's so much going on in life, and so many bills to keep track of. Make it easier on them by using a tenant portal to schedule automatic rent payments.
It's a win-win for both parties. Tenants don't have to mark rent payments on their calendars, and you don't have to pester them. Then you can focus on other ways to keep tenants in a tough market.
Offering Multiple Payment Options
Checks have gone the way of the Dodo, and yet people still use them for rent. No one likes them if we're being honest. They are easy to forge, easy to get lost in the mail, and inconvenient to write.
Instead, let your tenants pay you through different means. A credit card, debit card, or some other instant payment application is best. This gives them more options if the ones you offer don't work for them.
Send Follow-Ups and Reminders
When automation and instant payment methods aren't helping, there may be another explanation: a lack of reminders. Some people are forgetful, even when they write things down on calendars and to-do lists. It never hurts to offer a friendly reminder to get someone back on track.
This could come in the form of an automated text message or email. Or, if there was already a delay, a follow-up to ensure they take care of it. After all, tenants will give you reminders and follow-ups for you to handle their repairs.
Enforce the Late Payment Policy
It's a good idea to have a grace period for rent payments. Life happens, so people aren't always able to do things right on time. That's sad, it's important not to let tenants take advantage of you.
Most leases have some form of late fee policy for those who are late on multiple payments. Enforcing this policy shows tenants that you are serious.
Incentivize your tenants to pay rent on time if you can. You might discount their rent, add new amenities, or even upgrade the occasional appliance. People will be far more likely to pay on time if there's something in it for them.
Manage with PMI
Timely and efficient rent collection ensures you're getting the full return on your property. Focus on automating rent payments and offering a wide array of payment options. Reminders help, but you may eventually have to crack down on them with the late fee policy.
PMI Property Alliance in Windermere manages properties for you so you can focus on what matters. Schedule a consult with us to make your rental experience a breeze.