One of the hardest parts about being a landlord is enforcing rent collection and increase rents. If you find you are struggling with either of these, it may be time to reach out to a professional property manager. Property Managers will act as the liaison between you and the tenant, so you don’t have to have the tough conversations. However, below are some tips you can use right now if you are self-managing.
Clear Rent Collection Policies
It all starts with clear communication and setting the expectations upfront.
In the lease agreement there should be clear policies around rent collection specifying the due date, grace period, acceptable payment methods, late fees and when they are incurred, and the consequences for non-payment.
Make Payment Easy
The easier you can make paying rent the less resistance and excuses you will encounter. Make sure you accept multiple convenient options like online payments, automatic bank transfers, checks, money orders, etc.. Using a property management software can make this all really easy if you are self-managing.
Impose Late Fees
Make sure your lease specifies an automatic late fee will be incurred if the rent is not paid after a certain grace period to incentivize on-time payment. We have a 5 day grace period.
Hold Tenants Accountable
If rent is not paid by the end of the grace period, you have to be willing to act immediately. If you don’t you risk rent collection being prolonged and you set a precedent that you won’t follow up on consequences. Tenants will take a mile if you give an inch.
Begin Eviction Process
If rent still is not paid, don’t hesitate to start the eviction process. Again, you have to be willing to follow through on consequences to set a standard and reinforce the importance of on-time payments.
Usually tenants will pay or communication with us after the notice to quit because they don’t want to go through an eviction, so it rarely gets to that stage.
Are you struggling to collect rent on time?
Reach out to us for some free guidance! We are always willing to help a fellow landlord. And, if you are ready to have someone take the problem off your plate, we are happy to do that as well.
