Here is How to Collect Your Rent Accurately and On Time
Rent collection can become the worst part about being a landlord, say those with several years’ experience. If you do not manage the process properly, it can become a never-ending nightmare, with landlords constantly chasing down non-payers or late payers to collect outstanding rent. It is frustrating and time-consuming, affecting the landlord’s cash flow.
When considering the rent collection process, landlords should investigate different options to determine which works best for them. It comes down to choosing effective and efficient one, cutting down on time and money wasted during the rent collection process. Here are some tips to make rent collection easier and ensure you get paid on time:
Outsource rent collection
Consider hiring professional property managers in Atlanta from Evernest, Excalibur, and Specialized Property Management Atlanta to manage rent collection on your behalf. Evernest has a stellar reputation for putting their landlord clients’ needs first and delivering outstanding service at reasonable rates. Working with Evernest means that you can rest easy knowing that all processes related to rental property management are in the care of professional agents who understand the rental business and how to make a success of it. Evernest also has branches in Colorado, Tennessee, and Ohio. The alternative to hiring a local property manager is looking at one of America’s largest residential property management companies, such as BH Cos. and the Lincoln Property Co.
Naturally, hiring a property manager to take care of the many responsibilities that a landlord bears does not come for free. Most companies charge a percentage of the rental income, depending on what services they render. On average, you should expect to pay a 6-10% fee. While that might sound like a substantial sum, it is money well-spent when considering how much time and effort it saves you.
Online payments
As a landlord, embrace technology and insist that tenants use online payments to settle their rental bills. It is convenient, easy, and a popular choice among younger, tech-savvy tenants. They can make payments 24/7 from anywhere. You can also opt for automatic rent payments using online payment apps.
Using specific rental management software, you can send automated emails when payment is late, using an updated amount that includes late fees. For this option to work, tenants must supply you with a valid email address and be responsive to any correspondence you send. As a backup, consider setting up a system that issues texts to tenants reminding them of upcoming payment deadlines or informing them that they have not paid.
In-person collection
Adding the personal touch to a rental relationship can be advantageous. You get to visit your property once a month and give it a brief once over to ensure that everything is in working order and perform small routine maintenance tasks. It is an opportune time to discuss any issues with your renters, keeping the lines of communication open and creating a cooperative relationship.
The downside to an in-person rental collection is that some tenants have a knack for disappearing when the rent is due. They are slippery by nature and hard to pin down. Create a set appointment for rent collection and send a text or email a few days beforehand to remind your tenant of your intention to visit the property and collect your rent. In-person collection is also time-consuming if you own multiple properties.
Clarity on the rental agreement
Landlords can improve their chances of getting their rent on time if they ensure tenants understand the terms and conditions of their lease agreement. Take the time to go over it with your renters before signing the lease agreement, ensuring that they know the consequences of non-payment or late payment. They are likely to pay promptly when they understand what not doing so could lead to.
As a landlord, you should maintain a cordial, professional relationship with your tenants. Do not allow them to take advantage of your good nature by spinning stories about an inability to pay the rent. Once you let things slide once, it becomes a slippery slope. By agreeing to a variation on the rental agreement once, you show yourself to be negotiable and easy to manipulate. Unscrupulous tenants will attempt to exploit this, leaving you with the headache of getting your money from them or starting the eviction process.
Never accept cash
Accepting cash rent payments opens you to several complications that you should avoid as a landlord. For starters, it is challenging to create an unchallengeable paper trail of cash payments, which could work against you if a financial dispute arises.
The second problem that cash rent presents is that you do not know its source. The cash could be the product of a crime, and by accepting it, authorities could imply your complicity. They could go as far as accusing you of money laundering. Pleading ignorance might not be enough to keep you out of legal hot water.
We hope you enjoyed this blog about 5 Tips to Ease the Process of Collecting Your Rent Accurately and On Time.
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