In March 2022, landlords evicted 771 people from their rental properties. As a landlord, you probably know the primary reason landlords evict tenants: lack of payment.
So, how can you improve your rent collection process? One option is making it easier for your tenants to pay their rent.
Do you want to know how to make this easier for your tenants? If so, keep reading this guide to learn how to improve your rent collection process.
Choose Better Tenants
If you want to learn how to collect rent, you might want to start by recognizing the difference between good tenants and bad ones. Good tenants tend to pay their rent on time, while bad tenants don't.
Therefore, improving your tenant quality might help you collect more rent with fewer hassles. You can hire a property management firm to learn how to find better tenants if you need help.
Offer Online Options
Secondly, have you considered offering online payment options? You can choose from many rent payment portals, which are systems that allow tenants to make online rent payments.
People today pay their bills online more than they have in any other era. This is because online payments are simple for people to use and don't require leaving the house.
If you offer this option, you might see a boost in on-time rent payments from your tenants.
Encourage Automatic Payments
Additionally, you can encourage your tenants to set up automatic rent payments. Setting this up requires only one action. After setting it up, the system will automatically process their rent payments each month.
The tenants won't have to do anything, as the system handles the payments for them.
Setting up automatic payments is beneficial for many reasons. First, it's easy to set up.
Secondly, it's convenient. Once you've set it up, you won't have to do anything else. Additionally, it helps people build their credit and avoid late payment fees.
If you create a portal, you can give the information to all your tenants and encourage them to set up automatic payments. You might even offer an incentive for setting this up.
Enforce Late Payment Fees
Another way to make collecting rent easier is by enforcing late fees. Does your lease state that tenants must pay a late fee if you don't have the rent by a specific date? If your lease doesn't say this, you should add it.
If your lease states this rule, you should enforce it. If you don't enforce it, your tenants might pay their rent late every month. However, they'll be more inclined to pay on time if they know that you'll enforce the late fee.
Improve Your Rent Collection by Hiring a Property Manager
Did you also know that you can improve your rent collection process by hiring a property manager? Property management firms know how to collect rent and have experience with this task.
Would you like to learn more about our property management services? Contact us at Investor's Realty to learn more. We operate in Denver and offer rent collection and other property management services.