One of the challenges that most landlords face is collecting rent on time. You find some tenants are paying as late as 5 to 10 days after the due date. The problem with this is that it makes your accounting hard. Maybe you want to pay your property manager, the maintenance crew, or make bank payments, but you cannot do so on time. When this happens continuously, it becomes a vicious cycle that can be frustrating. Here are some strategies to help you collect your rent in time to deal with this problem.
Send Rent Reminders To Your Tenants
You can choose text messages, phone calls, or emails as a way of reminding your tenants to pay rent. Even better yet, come up with a reminder system that informs your tenants of outstanding payments. For instance, you can send a reminder three days before the rent is due, on the due date, and a day or two after the due date. Also, many online tools for rent collection can do this for you.
Implement Consequences For late Payments
One of the rules you will find in almost all leases is that late payments will attract a fee. However, some property managers and landlords are not very strict when it comes to this. If you are constantly dealing with late payers, you may want to consider implementing this rule. It will motivate your tenants to pay rent on time. However, if any tenants communicate with you about late payments, do not find them. Document the communication and ensure the tenant stands by their word. Also, make the policy fair and consistent.
Get a Property Manager
If you feel like you do not have the time and energy to follow up on late rent payments, you can hire a property manager. Opting for property management Aurora CO-based makes your job much easier as they can help you implement a good payment system. Also, you do not need to follow up on late payments as they will be the ones to talk to the tenants on your behalf.
Reach Out to Late Payers
If specific tenants are constantly paying rent late, reach out to them. Confirm whether there is a reason the person cannot pay on time. Some people receive their paycheck later, which means they cannot make payment on their due date. If that is the case, you can come up with a different agreement for them. While at it, you may also want to consider different rent payment methods to accommodate all your tenants.
Screen Your Tenants Properly
The tenants you accept on your property will contribute to how you receive your rent. Therefore, have a screening system in place before accepting them. You can confirm proof of a job, call their previous landlords, or check their payment history. This helps ensure you only end up with quality residents that will be making payments on time.
While late payments here and there can be expected, do not allow it to be a habit. This is also a business like any other, and late payments can affect your bottom line in the long run.
