Collecting rent sounds easy, right? Around 11 million renters say that they are behind on rent. Even well-intentioned renters can fall behind on rent for any number of reasons.
If you are a landlord who is looking for tips on how to collect rent more efficiently and effectively, you found the right article! We'll explore whether you should collect rent online or through other means.
1. Communicate About Late Payments
The first thing that you should do about late payments is to communicate with the tenant. Be straightforward and polite but ask about late payments — why are they late and how do they plan to pay in full.
That way, there will be no confusion about your expectations as a landlord. If the prospect of eviction or litigation arises, you'll have documentation that you addressed the matter directly with the tenant. Following up with email and letters creates a paper trail that you can use later.
2. Consider Late Fees or Consequences for Late Payments
Late fees provide another incentive for tenants to pay on time. Some cities and states have laws that limit late fees. A late fee of $60 for a $1,500 rental fee is about average.
You have discretion on whether you enforce the fees. If a tenant who normally pays on time alerts you that he or she will be one day late, you can opt to waive the late fee. For renters who continually pay their rent late, you'll want to strictly enforce your late fee policy.
3. Offer Online Rent Payments
Being a landlord requires keeping up to date with certain trends. Online payments have become the standard form of payment for many apartments across the country. Tenants can sign up for automatic online payments so there is one less barrier to remembering to pay rent on time.
4. Send Rent Reminders
Topping our list of tips for landlords is to send periodic rent payment reminders. You can send these reminders via text messages, phone calls, or email.
Certain online payment platforms will automatically send payment reminders and notices of late fees. The software can automatically generate late fees so you don't forget to levy those fees.
5. Offer Incentives For On-Time Payment
There are up-sides to paying rent on time, and tenants should know about that form of positive reinforcement. Renters can improve their credit scores by paying on time. The updates won't happen automatically.
Landlords can report on-time payments directly to a major credit bureau. If you do so, be sure to notify your renter of this added perk of paying on time.
6. Be Careful About Choosing Tenants
Rent collection is much easier if you have chosen the right types of tenants. Develop a thorough screening process that involves a criminal background check and credit report examination.
Learn More Tips About Collecting Rent
Collecting rent doesn't have to be a hassle. The tips in this blog offer proven advice that can increase renter compliance with rental policies. Most renters want to pay on time.
Are you looking for someone who can combine world-class property management with local expertise? HomeRiver Kansas City offers a wide range of property management options that deliver better leasing experiences for you and your tenants.
Call our office today to learn more.
