There are nearly 48.5 million rental units in the United States! One of the biggest benefits of being a landlord is that you get to collect rent to make a profit from your building. However, there are times when collecting rent is not easy.
Things can become challenging for one reason or another. No matter how challenging collecting rent becomes, you need to make sure that you follow the correct protocols for collecting it.
Here are some tips for successful rent collection.
Use Direct Deposit
Having your tenants directly deposit rent into a select bank account automatically every month is a reliable way of ensuring that you collect your rent on time.
Automation ensures that your tenant does not have to worry about rent payment, once it is set up, it will automatically be withdrawn. Try to offer other options for paying their rent as well. If it is possible you can allow tenants to pay by sending checks in the mail, or they could be allowed to pay in person if you can facilitate it.
Make Your Expectations Clear
Before you rent a property there is a rental contract that you will need to give your tenants. In your contract, you need to make it clear how you wish your rent to be paid and also your expectations for the payment of your rent.
This is a legally binding document and if the terms are violated you can take steps towards eviction. You need to clearly outline how much the rent will be, how much it may increase yearly, how much they will pay for their utilities, and the date you expect to be paid by every month.
Having clear stipulations in your rental contract is one of the biggest protections you have as a landlord.
Offer a Grace Period
Collecting your rent is very important, but you still have to make room for the fact that life can happen. Even if you have taken the proper measures for finding tenants of high quality, there may be times when rent is not on time.
Having a grace period in place allows your tenants some room to be late with payments without violating the terms of the contract. You can use your discretion to decide how much of a grace period you want to give your tenants.
Rent Collection Made Easy
Giving your tenants multiple ways to pay their rent makes rent collection a lot easier. You want to make sure that collecting rent is not a hassle for you.
Ensure that you have an airtight contract where you stipulate when your rent should be paid and how payments are to be made.
Be sure to include a grace period in your contract as well, so that your tenants can navigate any difficulties they may have without breaching the contract.
If you would like help with managing your pretty or with rent collection, please contact us.