A Quick Landlord’s Guide to Rent Collection
With the national median range for rent rising 11.4 percent this past year, rent collection has gotten more difficult than ever! Rent collection can be a headache for many landlords, especially when it isn’t being paid on time.
But don’t worry – it doesn’t need to be difficult, so long as you’ve got the right tips! Here we’ll look at some of the key points of collection you need to know. So let’s take a look!
Set Up Direct Payments
Set up collection through direct debit. Like utility companies, you can set up collections monthly, so the collection process is done automatically.
Setting up these auto-payments will mean rent is paid on time, and the appropriate fees can be added if the payment does not go through. If your tenants are worried about the auto-pay process, mention that using auto-pay is proven to increase credit scores!
Have Clear Due Dates
Generally, you will want to make rent due on the first of every month. However, in some cases, you might find that setting up bi-weekly or seasonal collection options works better for you and your tenants.
In any case, make sure rent is due on a steady schedule, and stick to it. In this way, rent collection will operate like clockwork, and rent will be paid in a timely fashion – with no miscommunication or late payments!
Keep Good Records
Keeping accurate records is an expert tip for landlords. Keep accurate rent collection records, so you know exactly what your tenants owe when they owe it to you, and if they have repeatedly paid on time or late.
Good record keeping minimizes the risk of late payments, as you will have a clear system in place for collection. It is a service to you and your tenants to keep accurate records in case your tenants request rental history in the future.
Don’t Forget To Communicate
Communication with your tenants is key. When rent isn’t paid on time and rent collection becomes an issue, there needs to be an open dialogue between you and your tenant. Keep in regular communication with your tenants, and encourage them to express any rent concerns they might have.
This open dialogue helps establish trust between the two of you. For example, if rent isn’t paid on time, communicate with your tenant to determine why rent wasn’t paid. This dialogue encourages payments and makes collection more transparent.
Establish Clear Policies
As a landlord, establish rent policies from the beginning to avoid rent collection issues. Tell tenants about late rent fees and what happens if rent isn’t paid on time. Be transparent with your tenants about rent collection systems and processes you use, and establish these before rent is due.
With a clear policy outlined, rent collection will be easier, rent payments are more likely to be made in a timely fashion, and rent collection issues are less likely to occur.
Make Your Rent Collection Process a Breeze
With these tips, your rent collection process will be pain-free! It all comes down to having a clear collection system in place for both you and your tenants, open communication, and good record-keeping!
If you’ve got more questions – we’ve got more answers! Visit our page today to learn more about all things property management!