Rent isn't cheap these days. When most people expect to pay at least 30% of their budget on living expenses, that makes it one of the most costly expenses. And with any large sum of money, it's guaranteed to cause some hard feelings.
It's every landlord's goal to make the rent collection process as painless as possible. You want to ensure your tenants pay on time without any drama. But far too many landlords collect rent in a way that causes confusion or creates conflict where there should be none.
So join us as we discuss how to have a stress-free rent collection policy with your tenants.
Have a Clear Rent Collection Policy
From the moment tenants sign the lease, make it clear how much rent is, and when it's due. Make it clear that any sufficiently late payment may incur some penalty fee. However, do offer some flexibility, given how high inflation is these days.
Consider giving them a grace period of a few days to pay. Their chosen payment method, such as a bank transfer or check, may take time to process. Ensure that if they're paying utilities, they have the information to pay them.
Break down the rent payment and explain any extra charges. Avoid trying to tack on meaningless fees that don't seem to make sense. To maintain long-term tenants, you need to establish trust and friendliness between both parties.
Give Convenient Rent Payment Options
Oftentimes landlords only offer one or two rent payment options. They often use an outdated rent payment portal. That portal usually only has limited rent payment options.
For example, there may only be a bank transfer and debit card option. Some of these options come with a sizeable fee to make them. Give them more options, especially free ones like PayPal, Venmo, and others.
Lastly, help them to use the portal. Show them in person how to navigate it and make payments.
Work With Struggling Tenants
Inevitably, you'll get a great tenant who simply struggles to pay on time. Most landlords would brush them off and demand payment. But again, create a relationship of trust and understanding.
First, take the time and effort the understand why they're struggling. Maybe they just had unexpected financial burdens, or they lost their job. It's highly unlikely that they can't make rent for some personal moral failing.
Second, work out reasonable and lenient ways for them to catch up on late payments. Perhaps set up a payment plan, or give them a longer grace period. After all, a landlord's most important job is to serve others and provide them with good accommodations.
Find Property Management Today
Rent collection is a sore spot for most tenants and landlords alike. It's in your best interest, then, to make it as painless as you possibly can for both parties. Establish a clear rent collection policy, be understanding when your tenants struggle and mediate with them when they can't pay on time.
Looking for property management in Raleigh? We're here to help. Check out our website and let us help you keep up with your rental.
