Rent collection is the best part of being a landlord - that is, if you do it correctly.
With rent prices going up all over the country, collecting rent from your tenants can be one of the trickiest responsibilities that you have as a property owner. Unfortunately, that's how you make money on your investment, so cracking it should be a top priority.
Today, we're going to give you a few key rent collection tips that should help you accommodate your tenants whilst ensuring that you're always getting paid in a timely manner. Don't stress over rent payments anymore; keep reading and learn how to do it the right way.
Rental Agreements
If you're going to collect rent successfully across multiple properties and from multiple tenants, you need a good rental agreement. A clear, concise rental agreement will outline the policies for rent collection, late payments, and what happens if rent is missed.
You can find rental agreement templates online that have everything written out for you. In addition to the things listed above, your contract should state the different methods for paying rent, which we'll discuss next.
Making It Easy to Pay Rent
To be a good landlord, you need to offer some rent collection flexibility to your tenants. Different people have different comforts when it comes to paying rent. It's in your best interest to allow your tenants to pay you with whatever method they want.
Younger tenants will usually prefer to make their monthly payments with electronic bank transfers. Apps like Venmo or Paypal make it easy to send money back and forth in a matter of minutes.
Older tenants might not be as comfortable with online banking. In these scenarios, you have to be willing to accept post-dated cheques or even cash. At the end of the day, as long as you get the money into your account, it doesn't matter how it happens.
Grace Periods
It might sound like a slippery slope to include grace periods in your rental agreement, but everyone has tough times. Giving your tenants a few days of lee-way every month is going to make them more comfortable and help you retain your best tenants.
Make sure to outline the late penalties that come with paying outside of the grace period. A late fee shouldn't be back-breaking, but enough to incentivize your tenants to pay on time every month. If you have any tenants who miss payments or consistently send rent late, you may have to take action to evict them.
Hiring a Property Manager for Rent Collection
Rent collection can be stressful, especially if you've got multiple properties. If you're finding it difficult to keep track of rent payments, it might be time to hire a property manager.
A full-service property management company can handle everything from marketing and tenant screening to rent collection and eviction. When you've got numerous properties or property investing is your side-gig, then a property manager like Home River Group is your best option.
To learn more about what we do and how we can help you maximize your property, contact us today.
