In an ideal world, all of your tenants will pay rent on the day that it’s due, maybe even before it’s due. However, this is not a perfect world and you may have tenants who are consistently late or always providing excuses when the due date comes and goes and you still don’t have the money. On today’s blog, we’re offering four tips to collecting rent on time.
In your rental agreement, you need to state the day that rent is due every month. You must also let the tenant know if there is a grace period. Your rental agreement should also include any late fees that will be charged and penalties that will be incurred when rent is late. Make sure you also include information on how to pay rent. Go over this with your tenant before move in so you can be sure the instructions have been communicated and the tenant understands.
Offer multiple payment options for your tenant to utilize. If the only way you accept rent is to get a paper check in the mail, you stand a good chance of getting it late. There could be delays in the postal system, holidays and weekends and maybe your tenant will have trouble finding a stamp. Let tenants pay rent online, offer recurring payment plans through the use of a credit card, debit card or bank account, and let them stop by your office to drop off a check. When you give tenants options, they can pick the one that best meets their needs, and you have a better chance of getting rent on time.
Enforce Late Fees
If you told a tenant in the rental agreement that there will be a $50 late fee any time rent is paid late, make sure you collect that fee when rent is paid late. If you let it slide the first time, the tenant is going to assume rent can arrive a couple days late without any consequence. Be firm and be consistent.
When you’re using the latest technology, you can increase the chances that you’ll receive rent on time. Use a property management software system that allows tenants to have their own page or portal. They can use this to log onto the system and make payments at any time, whether it’s the middle of the night or a holiday weekend. This type of system will also help you and your tenants communicate with one another. Tenants can log on to request a repair or access a copy of the rental agreement they signed.
Collecting rent on time is critical because you have bills to pay too. If you have any questions or you need help getting your tenants to pay when they are supposed to, contact us at Dave Poletti & Associates, and we’d be happy to help.