The first of the month should be pleasant for landlords, shouldn't it? Unfortunately, that's not always the case. Sometimes, rent collection takes a downward turn due to late payments and other issues. When this happens, it creates a headache for everyone involved.
Although you can't completely prevent late rent, you can improve your experience. So, what should you do? Continue reading below to get insightful tips to help you deal with rent collection.
Improve Tenant Communication
Rent time rolls around fast for everyone. Of course, your lessees know that rent is due on the first of every month. However, it's easy to forget. Your tenants have busy lives, so sending out reminders is helpful.
You can put up posters around the neighborhood or send out emails. You'd be surprised how a simple reminder can reduce late payments.
Offer Various Rent Collection Methods
One of the best ways to get better results is to allow multiple rent collection methods. The more you limit your tenants, the harder it will be to get payments from everyone.
Allowing checks, money orders, and virtual payments is a good idea. Online payment processors make it much easier for tenants to pay their rent.
Create a Tenant Portal
A tenant portal is a great asset! It makes rent collection a lot better because renters can pay via debit or credit card. It also allows for automatic withdrawal. That way, your lessees don't have to remember to make a payment.
Furthermore, online rent payments are great because tenants can pay rent from anywhere. They don't have to be in Phoenix!
Implement Late Fees
Renters don't like late fees, but as a landlord, you have to find ways to get paid. By enforcing fees, your tenants will make paying rent on time a priority.
No one wants to spend an additional $100 or more for late rent. To avoid this penalty, your lessees will likely get their rent in by the appropriate date.
Establish a Grace Period
You must be strict when it comes to rent collection. However, it helps to give your tenants a little grace.
Allow some wiggle room so that everyone has a chance to pay rent on time. Instead of setting the due date for the first of the month, extend it for a few days without penalty.
Create a Drop-Off Spot
The last thing you'd want is to have your tenants leave their rent in different places. To streamline the rent collection process, create a designated drop-off location.
That way, the individuals who want to pay via check or money order can put the rent in one spot. Doing so will make things a lot easier for you.
We'll Handle Rent Collection for You
Following these rent collection tips will make your life a lot easier, but allowing us to handle it for you is even better. At PMI Phoenix Gold West, we provide a variety of property management services.
We are part of a larger company that's been around for more than 20 years. Our goal is to make landlord life in Phoenix more manageable.
We'll handle your maintenance, marketing, rent collection, and more. If you're interested, call 602-975-2977, or request a free rental analysis on our website!
