More than 75 percent of landlords still accept personal checks from their tenants. Most tenants say they would prefer to pay rent electronically.
If you want your real estate investment to pay off, it’s important to focus on streamlining your rent collection process. Here are some guidelines that will help.
Find Qualified Tenants
When you have a vacancy, it’s essential to take the time to find tenants with a good track record. Check their credit history and ask for references from past landlords.
Look for someone with a stable rental history. You don’t want to put your property up for rent again in a few months. Understand your local laws for rental properties, especially the eviction process.
A rental application form is a great tool to help you gather the information you need. Your lease agreement should clearly define your expectations and consequences for breaking the rules.
Automate Rent Payments
Tenants make most of their payments electronically these days. If you insist on accepting only paper checks when you’re collecting rent, they will find it inconvenient, which may delay your rent payments.
The best way to meet your tenant’s needs is to be flexible. Some people will want to use Paypal or a money transfer app to make their rent payments. Others may want to give you post-dated checks or cash.
Make it easy for your tenants to pay their rent by automating the payment process. Rent collection platforms allow you to set up rent collection via bank transfer or other payment services. Tenants can use the one-time signup to pay rent automatically.
Use a Property Management Service
Taking care of several investment properties can become a full-time job if you own several investment properties. Rent collection is only one of the many tasks required each month.
A good property manager will help you find great tenants and will deal with any problems as they arise. They can arrange to show your suite to potential renters and perform damage inspections when a tenant leaves.
If you’re in this situation, it may be time to consider hiring a property management service. They will take care of the day-to-day details, giving you more time to find new investment opportunities.
Follow Up on Late Rents
Eviction is a last resort, but you must prepare to take this step. When a tenant is late paying rent, follow the terms in your lease agreement. Give proper notice in writing and follow the rules for your state.
Sometimes a good tenant will experience a financial setback and be late with their rent. If this is a rare occurrence, you might make an exception to your process. If it happens again, don’t let your emotions delay your decisions.
Streamline Your Rent Collection Process
Now that you know some steps to make rent collection a more straightforward process, you implement them today.
Did this article give you some great tips to help you as a landlord? If so, be sure to use the simple search feature to find more information.