5 Techniques Successful Landlords Use For Rent Collection
Under normal circumstances, here are some techniques landlords often use to make rent collection an easier and more predictable process:
1. Carefully Screen Tenants
If you want rent collection to be a breeze, it all starts with meticulous screening before ink ever goes to paper. While you can’t always weed out late payers, you can certainly reduce your chances by keeping an eye out for warning signs. (The best piece of advice is to talk with current and past landlords to get a feel for their rent payment habits. You can also call up their employer to verify income.)
2. Set Expectations
Rent payment and collection is something that should be clearly explained on the front end – when signing the lease agreement, immediately after move-in, and in advance of the first rent payment. By setting expectations, you give the tenant less room to wiggle their way out of making a payment. It also makes it clear that you’re serious about payment. (Some tenants have past experiences with past landlords who were timid and non-confrontational. This may have led them to believe they can take advantage of anyone.)
3. Make it Automatic
The best way to get tenants to pay on time every time is to require an automatic rent payment via some sort of direct deposit or auto-deduct system that transfers money from their bank account to your own. (This eliminates human error and excuses, such as “forgetting” to pay.)
4. Enforce Your Policy
A policy doesn’t mean much if you don’t follow through with consequences. When a rule is broken and rent is paid late, you can’t afford to give out free passes. Enforcing your policy with penalties and fees will show your tenant that you take prompt payment seriously. It might require an uncomfortable conversation, but it’s unlikely that they’ll do it again.
5. Send Reminders
Do yourself a favor and send out reminders prior to payment. Something like a text message five days prior and on the day of payment will usually suffice. Again, this helps prevent those situations where tenants “forget.”
6. Reward Responsible Tenants
If you’re going to be tough on tenants who don’t pay, make sure you reward your tenants that consistently pay on time. This creates a positive system of reinforcement where tenants feel like you’re on their side. Rewards can be monetary – like $50 cash back any time a tenant makes three consecutive rent payments on time – or may involve a gift, like tickets to a sporting event.
If you are looking to hire a Property Management company to manage your property then consider hiring ACCL Property Management. For free consultation, please email us at firstname.lastname@example.org or call us at 905-432-8961