Collecting rent should be efficient and consistent. It’s due on the first, so most landlords expect that the rent will be paid on time, in full every month. This doesn’t always happen. Tenants forget, or the mail is slow, and sometimes tenants just don’t have the full amount that’s owed on the day that it’s due. As a rental property owner, you count on those rental payments to keep your own financial house in order.
Make sure you have a fair, consistent, and enforceable rent collection process in place. It will cut down on late payments and keep your relationship with your tenant a positive and professional one.
Your Lease Agreement and the Rent Collection Process
Rent collection starts with your lease. The rental agreement that you and your tenant sign should reference the amount of rent that’s due, when it is due, and how it should be paid. If you are going to allow a grace period, make sure the lease reflects that. You can say rent is due on the first, and considered late if it isn’t paid by the third. If there’s going to be a late fee when rent is overdue, make sure you reference that information as well. Tenants need to be informed, and your lease is a good place to document your expectations for rental payments.
Provide Several Options for Your Tenants
If you make the process easy for tenants, you have a better chance of getting the rent on time. Most property management companies have an online rental payment system, which is efficient and valuable to tenants and owners. Tenants can pay from their bank account or a credit/debit card, and they can schedule payments in advance. Most individual landlords don’t have that kind of technology, but you can still set up a way for tenants to pay electronically. Make it easy for them to send money from their bank account to yours. There are a lot of online payment platforms available these days, from PayPal to Zelle to Apple Pay.
Give tenants the option to pay in person, with a check, or even a money order or credit card. When you provide them with several different ways to pay, your tenants will appreciate the flexibility and find a way to pay the rent on time that best suits their budget and lifestyle.
A consistent rental collection process and diverse payment methods will ensure rent is paid on time. If you have any questions or need help collecting rent with professional Detroit property management, please contact us at Amstar Management.