Did you know that around 15 percent of tenants are behind on rent, or cannot pay their rent on time? If you own a rental property, it may be difficult to deal with late rent payments from your tenants.
Collecting rent on time should be non-negotiable with all of your rental properties. Here are some strategies you can use to help smooth the rent collection process.
1. Provide Multiple Payment Options
Offer a variety of payment methods so your tenants can choose how they want to pay their rent. This allows flexibility and will show them that you are open to many different payment options.
If you have a large number of properties or you utilize a property management company, they may have a website where tenants can log in and pay their rent.
However, if you only have a few rental properties, you can communicate to tenants that they can pay through other methods. These include checks, mobile payments, cash, or credit and debit cards.
When you track rent payments, make sure to note how the tenant paid you during a given month. If the payment is digital, then you may be able to go back and track it if needed.
You should also be aware of processing times for different payment methods. Some take several days to transfer into your bank account, so you may not receive your funds right away.
2. Send Out Reminders
Sometimes your tenants may have good intentions, but forget to make their rent payment. Reminders are a great way to keep them on track without harassing them about when rent payments are due.
You can send out reminder text messages or emails a few days before the due date so they have time to gather funds. Make sure to follow up later on with rental payment options if the rent is overdue or you have not received an update.
Contacting your tenants also gives you an opportunity to discuss payment issues and work out a plan. You may not want to let go of good tenants over a one-time payment issue.
3. Use a Property Management Company
To avoid the stress of collecting rent, a property management company is your best solution. For a fee, the company will take care of all kinds of issues on your behalf, including rent payments.
A property management company comes in handy for other services, such as tenant applications, screenings, tenant retention, and lease renewals. It may be worth the investment if it means keeping rentals occupied for longer and managing problems effectively.
Make Rent Collection Easy
Although rent collection can be an uncomfortable topic, it does not have to be difficult to work with your tenants. With these tips, you can collect rent on time and worry less about evictions or overdue payments.
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