About 18% of renters in America, (roughly 10 million people) were late in their payments at the beginning of 2021.
In total, that adds up to a whopping $57.3 billion owed. If you're a landlord, you know how frustrating it can be when tenants don't pay their rent on time
So what can you do about it? Read on for our top five rent collection tips.
1. Be Clear About Your Policies
One of the best new landlord tips we can give you is the be direct about your rental policies. Be sure to communicate your policies directly to each tenant.
Clearly identify the date payment is due, the late fees or consequences of missed payments, and acceptable payment methods.
Include these policies clearly in the rental agreement. Have your tenants initial and date every page of the lease agreement and make them a copy.
Always be consistent. If you have a one-time grace period for late payments, apply that to every tenant and only once. Be clear about how long that grace period is.
2. Accept Various Methods of Payment
Gone are the days of having to go to each unit to collect rent. Take advantage of the various ways to exchange money to make it easier for your tenants to pay.
Checks, email money transfers, and direct deposits are all options. Don't forget peer-to-peer payment solutions such as PayPal and Venmo.
When rent payments are scheduled or automated, there is less risk that you will get late payments. Plus, it makes it convenient for the tenant to pay in a way that makes sense for them.
3. Communicate Regularly
You might be wondering what this tip has to do with rent collection. We'll tell you.
Landlords that only get in touch when rent is late do not develop a personal relationship with their tenants. Soon, you will be seen as the scary landlord.
Instead, make it a habit to communicate with your tenants between payments. Check-in with them by phone, email, or text. Let them know about scheduled repairs, community updates, or other news.
Being friendly will go a long way in building trust. A solid relationship will encourage tenants to prioritize their payments much more than fear will.
4. Send Rent Collection Reminders
A little rent collection reminder can prevent a missed payment. You can get in contact with each tenant individually. Or you can set up automated messages to go out on a certain day and time.
Be sure to be friendly and polite in your messaging.
5. Collect Through a Property Manager
A property manager is a person or company who manages your property on your behalf. A property manager will collect rent, schedule maintenance, screen tenants, handle evictions, and much more.
If you are in over your head and need help, a property manager may be exactly what you need.
Look for a reputable company with a proven track record of experience.
How to Collect Rent the Easy Way
There you have it! We hope these five tips have given you some ways to make rent collection simpler and more efficient.
At Home River group, we are your Jacksonville property management experts. Contact us today to learn how we can serve you.