Kansas City is still one of the most affordable major cities for renters, making it a great place to be a property investor. If you're a new landlord, KC is the place to be.
Many new landlords worry about some of the tasks associated with property investing, like rent collection. We're here to talk about how to make rent collection a breeze for you and your tenants alike.
Read on to learn more.
1. Always Collect on the Same Day
When you were still a renter (if that was ever the case), did you ever wonder why rent was always due on the first of the month, even if you or other tenants didn't move in until the middle of the month?
It might seem like a hassle to deal with the math involved with prorated rent for that first half-month, but there's a reason that rent is almost always due on the first (even if the first happens to be a holiday or weekend).
In short, it's easier to remember and keep track of.
When rent is always due on the same day for all of your tenants, you always know when you're getting your money, and they always know when they have to pay. It's easier to prepare.
2. Use an Online Portal
There was once a time when all landlords wanted cash or checks handed to them in person (or in the mail if they lived far away). These days, this is inconvenient.
Checks are nearly obsolete in 2022, and the majority of people don't like having large amounts of cash on them. Instead, they prefer to make payments online.
An online tenant portal makes this easy. Tenants can set up payments directly through their bank or on a credit card, so you receive your money right away. They can even set up automatic payments.
This isn't to say that you can't have alternative payment options available for tenants who may not be as computer-savvy. Just make sure that an online payment portal is available.
3. Communicate With Tenants
You should keep an open line of communication with your tenants at all times, and this is extra important when rent is due.
It's helpful to send payment reminders a few days before the first of the month. If you use an online portal, you can set up automatic reminders, so you don't have to go out of your way. Tenants will appreciate this as it's sometimes difficult to remember bills when life gets so busy.
You should also notify tenants when they haven't yet paid.
If a tenant is late with their rent, the most likely reason is that it slipped their mind or they somehow didn't complete the payment process after starting. This is what grace periods are for.
If the tenant is facing financial hardship, communicating with them before taking legal action will help you find a solution that works for both of you, like a payment plan. It's always better to keep a good tenant in place even if they're struggling.
Rent Collection Doesn't Have to Be Hard
Rent collection for your Kansas City property might seem stressful, but it's a straightforward process. Make sure that you always collect rent on the first of the month, make it as easy as possible to pay via an online portal, and communicate with your tenants.
Are you looking for help with Kansas City property management? Our Kansas City property managers can help make property investing a breeze. Inquire about our property management services so we can start working together today.
