Collecting rent on time from your tenants is a necessary part of owning rental property, and it ensures consistent cash flow for landlords. Today, we’re sharing a few tips for avoiding late rent payments.
Include Rent Collection in Your Lease
The first thing you want to do is to make sure you have a lease that is clear and concise as it pertains to rental amount, the date that rent is due, how it’s to be paid and what the late fees are. Discuss this with your tenant at the time of lease signing. Point out the extra costs associated with paying rent late so they can understand how seriously you take on time rent payments. We use attorney prepared leases that are good at addressing this issue.
Communicate with Your Tenants about Rent
As the due date approaches, give the tenant a friendly phone call reminding them to pay rent. This promotes ongoing communication with your tenants, and you’ll have the opportunity to address any problems that you aren’t aware of.
Implement Automatic Late Notices
Set up automatic late notices that are emailed to your tenants as soon as rent is late. Let the tenants know that the late fees are now being charged to their account. We use a software system that has this function built in and it works very well. Our late fees start on the fifth of the month, and we have a daily late fee after that. By using a grace period, we build good relationships with our tenants and we pride ourselves on those relationships.
Provide Online Rent Payment Options
The best and easiest way to get paid is to provide online payments. This is convenient for tenants, because they can set it up and rent automatically comes out of their account. It’s convenient to you too, because there are no deposit slips or trips to the bank. Our software posts all payments to the ledger for us, which is also very helpful.
If you have any questions about our property management services and how we can help you collect rent on time from your tenants, please contact us at Victoria Equities Realty & Management.