How much will your home rent for?
Getting tenants to pay their rent on time can be a full time job. But as a landlord you have many other tasks to manage as well! Avoid the hassle of late rent payment, and set yourself up for success with the following creative ideas for tackling tricky tenants:
Perhaps a renter is simply forgetful or overly busy. If they always seems to have an excuse as to why their rent was paid late, maybe they would benefit from a fool proof online automatic rent payment platform!
Do your tenants claim they were unaware of the protocol or consequences for late rent payment? Part of your job as landlord is to clearly outline this important aspect to your tenant upon move in. Make it clear in the lease – what are the acceptable payment methods, what is the exact rent amount due, the exact due date each month, and the consequences of late rent or bounced checks.
In most states, you cannot charge a late fee until the 5th of the month. Make sure the tenant is aware of the fees! Will the fees accrue per day? And will late payment affect their credit? Most tenants will be more likely to pay on time if they are made aware that the payment will affect their credit score.
Consider raising the rent then offering a discount for paying on time. For example, if your property is valued at $1200 a month, consider charging $1270 and offering a $70 discount for paying on or before the due date.
Send out an email or mail notice reminding the tenant of the due date along with the fees for late rent payment. It’s hard to come up with an excuse when tenants have been given frequent and friendly reminders!
If tenants pay early, offer them a credit of $10/month that they can receive at end of year. Other ideas include offering a $5 Starbucks gift card or a discount on rent when they extend their lease if they have successfully made all their payments on time.
If a tenant is continually late on rent payment, the appropriate questions need to be asked to stop this from continuing. If they have failed to pay completely, ask them when they expect to be able to pay, where they will be submitting the payment, and what the source of income will be for the payment. Find out if there are any other reasons for their refusal to pay on time including maintenance issues or online payment issues. If they seem evasive or continue to fail to pay, an eviction notice may have to be delivered.
Get qualified tenants with established history of paying on time, a decent credit report, and solid references from previous landlords. It is appropriate for a tenant to have an income that is 3x the amount of rent, so getting their current salary and employer contact is helpful.
You wear a lot of hats as a landlord! If you are finding yourself consistently short on time, and working 10x harder than you thought you would to make a buck, consider hiring a property manager to manage your properties for you!
A successful property manager can find you a qualified tenant, complete a back ground check, issue eviction notices if needed, and they are pros when it comes to local rules and regulations for real estate and tenant relationship management. Most importantly, they can also manage the collection of rent and they are experts in maintaining a positive tenant relationship. This opens you up to the possibility of expanding your real estate portfolio or having extra time to relax!
Nashville Property Management Pros is your #1 choice for property management in the Nashville area! We make your life easier by professionally and effectively managing your property. We charge flat fees, and no up front fees to get started!
It’s simple to get started, and we don’t get paid until you do!
Or, get a free property management quote here!