The collection of rent is one of the most important aspects of property management. At the end of the day, property owners are in the rental business for rental income. In some cases, the method used to collect rent can impact whether the tenant makes a timely rent payment or not. Here are some tips that landlords and property managers both may benefit from.
- Implement a ‘No Cash’ Policy
- Consider offering an Automatic Debit or Online Bill Pay System
- Review your rent collection policy with your tenants
- Ask the necessary questions if they are late for a payment (examples could be, When do you expect to make a rent payment? What is the exact amount that you will be paying?)
- Enforce & collect charges for late payments
- Only accept full payments, even if more than one tenant lives in a unit
- Use a credible screening process
Remember, your property manager and landlord clients can simplify the monthly task of collecting rent by implementing a few of these basic policies and following them consistently for every tenant.
Do you have rent collection tips of your own? We’d love to hear them!
Sources: http://www.dummies.com/how-to/content/how-to-collect-rent-effectively.html
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