In 2020, the average gross rent increased by 2.6%, making rent collection every month an essential time for landlords globally. If you're struggling to collect rent from tenants each month, here are some tips you can use that will make the rent collection process easy.
Here are some rent collection tips to ensure a timely rent collection every month.
Speak With Tenants About Late Payments
The first thing you should do when tenants make late payments is to contact them and communicate the issue. When you have the initial interaction, ensure you ask the right questions.
Why is the rent payment late? When can you expect them to make the payment? Will the payment be made in full?
Communicating when your rent is late is crucial because it can reduce the chances of tenants continuing this same behavior in the future. Another reason you need to communicate that tenants have been making late payments is, so you have a paper trail of documentation.
This is just in case you need to go through the legal process of eviction; you'll have documentation to support the eviction. When you're communicating with the tenant, make clear the consequences of paying rent late.
Make Rental Payment Easy
When tenants have to write a check or buy a money order, it's easier for them to forget to make rent payments on time. This is why landlords should do what it takes to make the rental payment process easier for all parties involved.
The reason you might want to go the online payment route is that it can reduce the chances of several things happening, such as:
- Payments getting lost in the mail
- Bounced checks
- No payment receipt
When you select the online portal you'll use for your rent payments; you can offer an automatic payment option. This means tenants' rent will come out of their account simultaneously every month without them having to think about it.
Choose the Right Tenants
Another way to ensure you're able to collect your rent on time each month is to take the time to fill your properties with the right tenants from the beginning. You'll need to conduct a tenant criminal background check otherwise known as a tenant screening to do this.
This type of background check will show you anything you need to be aware of in the tenant's past rental history. For example, if they've had a past of not paying rent, this isn't a tenant you want to have live on your property.
Rent Collection Tips for Landlords
We've given rent advice that will help make rent collection more manageable for you to do. It's best to choose the right tenants from the beginning and ensure you've taken the time to communicate clearly with tenants about the consequences of paying rent late.
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