Rent Collection Tips & Techniques

There are a couple of ways a landlord manages rental properties, it can be profitable and will help keep the cash flow going as long the rent collection is handled properly and on time. Even if you handle a couple of rental units only as long as you comply with fair credit law.

It would be good to set-up a method on how you can collect rent every month because it will help you trace who among your tenants are updated with rent and who among them have problems with paying their rent on time. Here we will tackle some of the important tips and techniques that will make your tenant pay on time.

Communicate With Your Tenant

It is always important to communicate with your tenants especially when it comes to resolving the issues with those who pay late on their rent. You may talk to them professionally and remind them about what you both agreed on the lease agreement and of the consequences for paying late on time so they will know that you take late payment seriously.

Online Rent Payment

As of today's new technology, many landlords are taking advantage of collecting rent online because it makes both their lives and their tenants a lot easier. This is one of the effective ways on how to collect rent on time. Enforcing an automated payment is beneficial to both your tenant and your business. Using this kind of method for tenants to pay their rent can benefit them because when they are busy with their duties they tend to forget to mail the check or go to the office to send the payment to their landlords. This way, making an online payment, will allow tenants to set-up an automatic payment to keep their rent paid on time. It is convenient as well to landlords because it saves time and makes rent collection a lot easier for you and your tenants. It will also help you reduce labor costs from collecting payment manually, help reduce collection hassle and will help to improve cash flow going.

Chose the Right Tenants

Choosing the right tenants will help landlords lessen the problems regarding the payment of rent. Different types of tenants will apply to be a renter of your property; they are those who are excellent, good, and bad in making payments. And choosing the right qualified tenant will help you get rent on time and to make your business more successful. Landlord’s one common mistake is during the rental application of the prospective tenants is when they fail to conduct a tenant background check. Tenants sometimes show the landlord that they have enough money for the security deposit, but it won’t guarantee the landlord of consistent rental payment on time. It would be better to run a full tenant screening to help determine which tenants are qualified.  

Build a Good Relationship

Tenants are people who make your business keeps going and so building a good relationship with your tenants is more likely for your tenants to be more responsive to your needs and pay their rent on time. Sometimes giving them a little token of appreciation makes your tenants feel their landlord cares and value them may keep them stay in your properties for a long time. It probably won't take much if you will give your tenant may be any of the following as a sign of appreciation and one of your way in building a good relationship with them: maybe a welcome thank you gift, remember them on their birthdays, a small gift on Christmas holiday, one-time discount on rent or organize a Sunday lunch with tenants and their family once in a while. 

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