The first of the month means one thing for landlords – rent is due. But, dealing with the collection of it can be hard. Owners often struggle with missed payments, administrative errors, late fees, and more. All resulting in lost profits.
Given how important rent collection is to a property owner’s bottom line, we’ve outlined the top five tips for avoiding late-paying renters.
1. Take Time Finding Quality Tenants
It’s important to find quality tenants. Someone that’s reliable, truthful, and honest will make sure rent is being paid on time. But, finding someone like this is easier said than done.
That’s why it’s vital to have a proper screening process in place. The screening process should include things like verifying their identification, a criminal background check, credit report, employment proof, and more.
Doing all of this work before renting to a person ensures the candidate is truthful and gauges how likely they will be to fulfill the terms of the lease.
2. Offer Online Payments
Online payments prevent late rent since there’s no excuse why rent couldn’t be paid. With this option, renters can easily log onto the online platform whenever they are and at whatever time. Most rental software systems also give tenants the ability to pay using a credit card or PayPal. And, to even set up automatic monthly withdrawals.
3. Use an Online Platform
Tracking, collecting, and pursuing tenants is much easier when there’s an online platform. That’s because an online system makes it easy to search, organize, and store tenant data. Meaning, you won’t have to worry about accidentally overlooking a late payment.
An online system can also be accessed anytime and be automated to flag owners of any delinquent tenants. In turn, making it much easier to notice if anything goes wrong.
4. Act Quickly
When tenants are falling behind on rent payments, it’s important to act quickly. Swift action is needed when a tenant is late on payments because they will need to be notified and charged late fees (if applicable). Otherwise, slacking on communication about late payments can result in lost profits and repeat offenders.
That’s why owners need to stay on top of who is late, and how much they owe. That way the renter knows how much they need to pay and what the consequences will be if it’s not done on time.
5. Consider A Property Manager
It’s impossible for one person to handle everything on their own when it comes to rent collection. From the paperwork, to the notices, late fees, and more; keeping on top of it is tricky. This is especially true for owners who have multi-unit properties who likely struggle to manage it all.
But, managing these payments can be easier with the help of a property management team. A dedicated team will make sure owners have the support they need. Someone like us, who will remove the burden of collecting rent by collecting it all and depositing it directly into the right account.
We also offer a 24/7 online tenant portal that gives owners and tenants real-time access to their accounts. Making it possible to keep track of everything in one place.
Ultimately, there’s no arguing that collecting rent is a challenge. But this process can be made easy with things like an online tracking system, digital payments, and an in-depth screening process.
To see what could work for avoiding late rent payments call 317-546-3482 or email info@midwestpmi.com.
