The average renter in the US pays $1,326 a month, but not all renters are reliable.
Rental properties can be a great source of income, but you must be prepared for various challenges. You can only make a profit if tenants are paying rent on time, and certain circumstances can get in the way of this.
In this guide, we'll take a look at how you can make rent collection simple and hassle-free. Keep reading for more.
Choose Tenants Carefully
Even in a tough market, you don't want to just take the first applicants you find. It's worth taking the time to screen tenants. This will help you find out if any applicants have a history of failing to pay rent on time (or any other issues).
You want to go with tenants who make all their rent payments on time and in full. You can also verify their employment and income through tenant screening. If they have a steady income, they should have no trouble keeping up with rent payments.
Make Paying Rent Convenient
Having tenants pay you in cash or by check might be convenient for you, but it probably won't be for your tenants. Things may be even more inconvenient if you ask them to deposit it at your bank or mail it. Using these methods increases the chances of rent arriving late.
These days, there are various ways you can collect rent. Options like PayPal and Venmo can be incredibly convenient for both you and your tenants.
There are also various platforms that are designed specifically for rent collection, so using such a platform may be the best choice. Giving your tenants several options will make things easier for them as they can then choose whatever method they prefer.
Enforce a Late Fee
A very effective way to motivate your tenants to pay rent on time is by charging late fees. If they know that they'll have to pay an additional fee, they'll always try to ensure they're not late with their payments.
You must inform tenants of any late fees and grace periods so that they're fully aware. Some states have laws in place surrounding late fees, so make sure you know what the rules are for your location.
Use an Online Rent Portal
An online rent portal makes managing rent payments significantly easier. You can use it to communicate with your tenants whenever you need to, and they can pay their rent in a very convenient manner.
These portals can offer a range of other helpful services like reviewing lease agreements, submitting maintenance requests, and providing access to important documents.
Stick to Your Lease Terms
Flexibility can be beneficial for landlords and tenants, but you should still be sure to stick to the rules in your rental lease. You may have terms in your lease regarding late payments and fees. You should enforce these rules as they're in the best interest of your rental business.
Simple Rent Collection
Rent collection is essential, but not always easy. Various factors can make things more difficult.
Rental Network is a professional property management company that can assist you with rent collection and a range of other services. Contact us today to find out more about how we can help you.