Imagine the possibilities that owning a rental property can bring. With a steady passive income stream, you'll have greater financial freedom and can even use the money to pay your mortgage. Issues can quickly arise, however, if you have trouble with rent collection.
Difficulty collecting rent payments can strain tenant relations and make your experience as a landlord unpleasant. The good news is there are simple ways to improve your rent collection methods.
In the guide below, we outline the key information you should keep in mind. Let's explore these tips in detail.
1. Offer Multiple Payment Options
One of the best ways to make rent collection as easy as possible is to offer your tenants multiple ways to pay rent. This could include accepting checks, cash, credit/debit cards, or even mobile payments. The more flexible you are, the fewer issues you'll encounter.
To clarify, let's assume you only accept cash payments from your tenants. There are many people who simply never have thousands of dollars in cash on hand. Accepting credit card payments can ensure you get paid while they figure out their financial situation.
Be wary of additional fees, though. You'll need to extend fees to your tenants if they choose payment options that charge you extra for providing them.
2. Keep Your Policy Clear
You should be fully transparent about your rental payment policy, but consider giving tenants a bit of leeway.
You don't always have to collect rent by 11:59 p.m. on the 1st of the month. Some landlords allow up to an extra week for tenants to make their payments.
There's no universal solution to this concern, and it will depend on your personal needs. Regardless of what you decide, ensure that it's clearly illustrated in the lease.
The same is true for the consequences that will occur if you don't receive rent by a certain time. Most landlords charge late fees at first. If a few weeks go by and they still don't receive the money, the tenant could risk being evicted.
3. Hire a Property Management Company
A property management company has the tools and resources to simplify this process. When you work with someone reputable, you'll never have to interact directly with your tenant.
Finding a property management company is easier than it seems, but you should research them online before making your decision. See what other people have to say about the experiences they had.
You should also ask about the company's compensation. Do they charge a flat fee, or do they take a percentage of rental income? The answers to these questions will help narrow down your options.
Streamlining Rent Collection Is Simple
The info in this guide will ensure you keep rent collection as easy as possible. As long as you stay flexible and transparent, you'll avoid issues you would've otherwise encountered.
LHM Realty is a family-owned and operated company with decades of experience in the industry. We aim to minimize stress and streamline property ownership. We'll discuss how we can ease your burden when you get in touch with us.
