Collecting rent on time is important for you to make payments to your vendors or mortgage so you want to make sure you receive it on time. Unfortunately, we don’t always receive rent when its due. Here are some tips on how to reduce late payments so you don’t need to worry when the next check will be coming your way:
1. Change the due date
If you are relying on tenant’s payments for your bills or mortgage, be sure to bump the due date up at least a week allowing you more time to receive the payment if it happens to be late.
2. Create a reminder
We live in the world of technology where everyone can now have a personal assistant, their phone. Set up monthly reminders for your tenant(s) that rent will be due.
3. Start collecting…
Those late fees! Sometimes these fees can make late payments stop a lot quicker than verbal warnings. Be sure that you implement the late fee policy fairly and to document all communication with residents regarding these fees.
4. Electronic payments
Since everyone, or almost everyone, utilizes the internet, make payments easier to pay through electronic payment. This option is much more convenient for not just your tenants, but for you!
5. Hire a property management company
Not only will you not need to lift a finger when it comes to maintenance and emergency calls, but financially you won’t need to worry about collecting and processing payments of all kinds. Property management companies do all of that for you. In addition, with our Rent Guarantee Program, each month, on the 1st business day of the month, you will receive an electronically transferred rent “advancement” into your bank regardless of whether the tenant has paid on time. As long as the tenant pays the rent at some point during that month, we will continue to advance rent for every following month.
Late payments happen but implementing some of these tips may help to reduce he number of them. However, don’t let people walk all over you. Remember, this is a business and you should treat it as such. If you are ready to start utilizing property management services for your rental properties? Give our team a call today at (855) 213-3410.