Around 15% of renters in the United States are behind on their payments at any time. This can have a serious effect on both renters and landlords as both of them struggle to come to terms with the repercussions of such a situation. So, how do you ensure rent collection goes as smoothly as possible every month?
The following five methods can help you get a handle on collecting rent. As you read through, check to see if any of these rent collection tips can help you move forward with less stress.
1. Make Sure to Screen Renters
Before you even get the renter in, try to check who they are and if you can trust them to get the rent to you on time. On top of this, go further than only asking some simple questions related to the person's background. If it is legal in your area, you could ask to see some of their financial documents to find out if they can afford your location in the long term.
This way, you can have assurances your tenants will not have other priorities they need to pick up. Your rent will always be at the top of their list.
2. Automate Rent Collection
Instead of picking up rent here and there through checks or cash, you could instead invest in rent collection software. Through using a rent collection application or website, your tenants can pay you online or through their bank.
A mailed check might take days or even weeks to get to a location, but a direct payment will always arrive almost immediately.
3. Send Frequent Reminders
There is nothing wrong with ensuring your tenants know what they owe when they are late with rent. Make sure to contact them once they miss a payment, then on a frequent basis after. Continue to escalate this the longer they do not pay and follow through with any legal threats you make.
4. Incentivize Paying on Time
Instead of only punishing late payments, you can also make on-time payments a positive experience. For example, if someone pays their rent ahead of time, you could offer a discount for the next month. Or, you could use gamified systems and free t-shirts or snacks if they do well in the long term.
5. Hire a Property Manager
There is no reason you need to do any of this yourself and cause yourself more stress than you need. Instead, you could always hire a property manager.
Such organizations will already have methods in place for collecting rent. You can discuss their exact process with them, but the chances are high they already know what they are doing so rent collection will not be a hard task.
Improve Your Rent Collection
With the above tips in mind, your rent collection system should be easier than ever. Still, you might want someone to help you out. As mentioned above, hiring a property manager can ensure the rent collection process does not drag out.
All you need to do is get in contact and we will be able to talk to you about your options, ensuring you get the system in place for your property needs. So, give us a call today and we can talk you through what we can do for you.