In the United States, more than 44 million households are renters. This number shows that owning an investment property can be a lucrative endeavor.
However, you could run into a few snags if you do everything yourself. For example, one area that often causes landlords grief is rent collection.
If your tenant isn't paying their rent on time, there are, thankfully, things you can do to change that. If they default on their rent, you can move to the eviction process and find better tenants.
Sound complicated? This guide has you covered! Read on to learn three tips for streamlining rent collection.
1. Set Clear Rental Terms
Indicate the rent payment rules in the lease agreement before a tenant moves in.
This way, the tenant can't claim they weren't aware of the rules. They'll have no excuse not to pay rent on time or claim they were unaware of the consequences if they don't.
Rent payment rules to include in your lease agreement are:
- The amount of rent due each month
- The rent due date
- Penalty fees for late rent payments
- The consequences for non-payment of rent, such as eviction
- The payment method (for example, cash, check, or online)
Including a grace period for late rent payments is also a good idea. This will give your tenant extra days to pay rent if they can't do so on the due date. Limit the grace period so your tenant doesn't take advantage of it.
2. Make Rent Collection Simple
Another way to streamline rent collection is to offer several payment methods. Your tenants can select the most convenient option for them, making it much more likely that they'll pay rent on time.
A few ways your tenants can make rent payments are:
- Online payments through a website, app, or tenant portal
- Automated payments through a bank account or credit card
- In-person payments at a drop-off location
- Check payments
- Mailed payments (not recommended)
3. Use Property Management Services
Using a full-service property management company to handle your rental properties helps the rent collection process. Property managers care for every aspect of your rental property business, so you don't have to.
This includes finding and screening tenants, collecting rent, issuing penalties, handling maintenance requests, and much more. It's a great way to save time, reduce hassle, and ensure your property is well-managed. Plus, they help you get the most out of your investment.
Find the best services in your area by:
- Asking for recommendations from friends, family, and colleagues
- Search online for property management companies in your area
- Read online reviews of property management companies
- Interview multiple property management companies before making a decision
Be On-The-Ball With Rent Collection
Following the tips above can help you streamline rent collection and ensure the rent is paid on time, every time. By setting clear rental terms, making rent collection simple, and using property management services, you can take the stress out of being a property owner and focus on other things.
Contact us today if you're looking for a full-service property manager in Atlanta, Georgia. PMI Marietta is a locally owned and operated franchise and provides a complete range of property management services.