Sixteen percent of renters were behind on rent payments as of May 2022.
Rent collection is a key factor in the success of any apartment community. If residents are paying rent late or not at all, it's hard to maintain positive cash flow.
Even worse, late payments can lead to eviction, which is not only time-consuming but also expensive. The good news is that you can take steps to improve rent collection.
If you are looking for tips for collecting rent in Neenah, Wisconsin, this short and simple guide is for you.
Screen Your Tenants
It's important to screen your tenants carefully before signing a lease. Check their credit scores and other financial information to make sure they have the means to pay their rent on time.
Ask for references from previous landlords and employers to get an idea of how reliable your tenants have been in the past. This can help you avoid tenants who are likely to be late on their rent.
Use Online Rent Payment Systems
Online payment methods are a great way to make it easier for your tenants to pay their rent on time. They allow residents to set up autopay for their rent, ensuring that they're never late with payments again.
Use PayPal or another online payment processor to accept rent payments from tenants. This will allow you to get your money faster, reducing the chances of your tenants being late on their rent.
Send Payment Reminders
If you haven't received your rent by the due date, send a reminder email. The reminder should include a link to your lease agreement, which states that tenants must pay on time.
Send this email one week before the due date, then follow up with a phone call. If your tenant still doesn't pay, send a final email that reminds him or her of eviction procedures.
Include a Late Fee in the Lease Agreement
If you don't have a late fee in your lease agreement, now is the time to add one. This will provide you with some protection if tenants are late on their rent.
The late fee should be a reasonable amount that will apply if tenants don't pay by the due date. You can also include a clause that allows you to deduct the amount of the late fee from future rent payments.
Hire a Property Management Company
If you don't want to deal with the headaches of being a landlord, consider hiring a property management company. A professional property manager can help you find good tenants and collect rent.
They will also handle day-to-day tasks, so you can focus on other aspects of your business. A property manager will give you peace of mind that your property is being well-managed.
Rent Collection: The Key to Being a Good Landlord
You can't be a great landlord if you don't collect your rent on time or in full each month. If you're having trouble collecting rent from tenants, consider changing your approach. By following the above tips, you can make rent collection a breeze.
PMI Fox Valley can help you find a property manager if you'd rather not do the job yourself. Contact us today to learn more about our services!