If your tenants are not paying rent on time, you’re probably wasting a lot of resources and effort chasing down the payment and trying to hold those renters accountable to their lease agreement.
One great way to limit the risk of late rental payments is to screen your tenants well. Make sure they earn enough money to meet their rental obligations and check their rental history so you know whether they have a history of paying rent late.
A consistent and enforceable rent collection policy also helps. Today, we’re talking about how to effectively collect rent from your Kent tenants.
Establish and Enforce a Rent Collection Policy
Make sure your tenants understand your expectations when it comes to rent collection. Discuss your rent collection policy before your tenant pays the security deposit and signs the lease. In your lease agreement, include clear instructions about how much rent is due, when it is due, and what the consequences will be if it’s paid late. Include any information about grace periods and late fees. Make sure tenants know that eviction is always a possibility if they don’t pay rent when it’s due.
Provide Online Rental Payment Options
Most tenants today expect to be able to pay rent online. They don’t like the hassle of mailing a check or dropping off a payment to you in person. When you make it easy for them to pay rent, they’re more likely to pay on time. Options are important. Some tenants will want to pay with a debit or credit card. Others will want to seamlessly transfer funds from their bank account to yours.
Most Kent property management companies offer tenants and clients an online portal. This allows tenants to pay rent online, set up recurring rental payments, and identify the cards or accounts that are to be charged. It increases the likelihood that rent will be paid on time, and provides the documentation we need for your accounting and bookkeeping.
If you’re managing on your own, a sophisticated online payment system may not be possible. But, there are other options. You can use electronic payment methods like PayPal or Zelle.
Online rental payments are efficient and secure. This is the easiest way to have everything documented and accounted for. There are no checks to lose in the mail, no postage to worry about, and tenants can make their payments from any computer or mobile device and at any hour of the day or night.
Communicating with Tenants
Having a good relationship with your tenants will also reduce the changes that rent will be paid late. Make sure you are professional and respectful when you talk to your tenants. Send reminders and show your appreciation when rent is paid on time. This positive reinforcement will allow you to work well together, and will keep rent coming in on time.
If you have any questions about collecting rent in Kent, Tacoma, Seattle, Renton, please contact us at People’s Real Estate & Property Management. We’re here to help.