Rent collection is the one skill all landlords must excel at doing, however, it's not always a sure thing. Even experienced landlords can run into problems from time to time.
The question is: how do you deal with these tricky situations? How do you ensure that your rental income doesn't suffer from these difficulties?
We're here to show you four effective methods that'll help you improve your rent collection process. Keep reading to learn all you need to know to navigate any difficult situation!
Offer Payment Options
One of the easiest ways to help your tenants stay on track with rent payments is to give them as many options as possible. Think about offering options such as:
- Tenant portal payments
- In-person delivery
- Direct deposit
- Checks
- Money orders
With so many ways to pay, you'll cut off most rent-collecting problems before they've begun. Tenants can't use inaccessible payment methods as an excuse when you offer so much versatility.
Keep Accurate Records
A key piece of landlord advice is to keep detailed and accurate records of your rent collection. This includes information such as the time, amount, and method.
This information gives you a better idea of what is working for your tenants. More importantly, these records are your main defense if there are any issues with a tenant that goes to court.
Limit Rent Increases
Although collecting rent may be your biggest source of income, it's unwise to hike up prices too often. Without a good reason or viable tactic to support this increase, you could end up with empty properties.
It's also reasonable to expect that current tenants will be unhappy with the new prices as well. It could lead to lengthy conversations or a delay in payment. This is why you should always keep random rent increases to a minimum.
Enforce Penalties
Most landlords want their tenants to feel comfortable with them. They want an amicable relationship that benefits both parties.
The problem is that you're not only a friendly face. You're also a business person trying to keep your income steady.
Empathy is good to have in this industry, but not to the detriment of your business. If you don't show tenants that you enforce your penalties, they could start taking advantage of your kindness.
If you find it too difficult to tackle these penalties against your tenants, it's often good to offload the task to a professional team.
Improve Communication
Effective communication is vital to the success of your property business. You should be proactive about letting your tenants know about rent due dates and any potential for penalties.
Your tenants should always be aware of a problem before it escalates. This practice leads to quicker resolutions and better protection for your business.
Making Rent Collection Easier
When rent collection starts to be a dreaded chore, it's time to think about seeking outside help. A management company can get your income back on track, all while offering innovative options to prevent problems in the future.
PMI Merced is a local property management company backed by a larger franchise. This means we have over 20 years of experience to draw upon when faced with any kind of difficult situation. Contact us with your rent collection issue and we'll work together to find a solution right away!
