Rent collection is an essential part of property management. But it can be stressful and time-consuming for property owners hoping to spend their time on big-picture ideas.
That’s where property managers can step in and make things easier. Read on to learn why property managers can make rent collection a breeze!
Communicate the Rent Payment Policy
Property managers can handle all aspects of landlord-tenant communication. This includes notifying tenants, both new and old, about the current rent payment policy. As your methods of payment or late fees change, you’ll want everyone to be in the loop.
Most policies will have rent due on the first day of the month, for instance. Some property owners may want to offer a grace period, as well. This could translate to having rent payments accepted up until the fifth of the month without a late fee in some instances.
What are the consequences of not paying rent on time? A reputable property manager will outline the steps they’ll take for delinquent payments. This could include reaching a tenant via phone or email to communicate the problem.
After that, the manager may charge late fees, the amounts of which should be indicated in the policy. If the rent is not paid after a certain number of days, the manager may then issue a termination notice. A property manager will do all of this on the owner’s behalf.
Tenants should be aware of policies regarding security deposits, as well. These are usually collected before a tenant moves in. The deposit is meant to pay for any damages the tenant may cause during their stay.
Remind Tenants About Payments
A property manager can remind tenants before rent payments are due. This is a simple and helpful gesture that can help avoid late rent payments while letting tenants feel supported. For tenants with busy jobs and personal lives, a reminder never hurts.
If you’re already busy with multiple properties and other responsibilities, the intent to send these notices can fall through the cracks. A property manager, on the other hand, can add this to their monthly task list.
Sending reminders doesn’t have to be hard, either. They can be simple automated messages that hit a tenant’s inbox a week before the rent due date. The property manager can set them up to go out each month.
Accept Rent Payments in Different Ways
A good property management company will have the means to accept and track different forms of rent payment. As a property owner, you want to make it as easy as possible for tenants to pay what they owe each month. As a result, it pays to diversify the payment methods you accept.
Some tenants may prefer the traditional method of writing a check and submitting it to a central office. The physical act of handing a check to a person or secure deposit box may feel more comfortable.
Others may prefer an online rent payment system. They can link a bank routing number or credit card to their account and pay through a computer. This method is simple and can be done at any point in the day.
And to go a step further, some may want their payments automated. This means that the rent payment will happen automatically each month. That way, they won’t need to remember to write a check or submit an electronic payment.
Many property management companies use software to make rent collection easier. This also provides a transparent way to show tenants that they’ve paid. And property owners can log in to the software, too, to see the latest financial numbers.
Incentivize On-Time Payments
Property managers also will be able to manage incentives for tenants. These can include ways to encourage on-time payments. Beyond current tenants, incentives also may apply to prospective tenants.
For current tenants, incentives could come in the form of a one-time discount on a monthly payment. Or it may mean a free covered parking spot. For long-term tenants with a track record of on-time payments, managers may want to offer an upgraded space or minimal rent increase at the next lease renewal.
For potential tenants with good credit, an incentive may be to waive a security deposit or pet fee. If marketed well, this kind of incentive can increase the pool of applicants. And it gives the property manager more room to accept only those tenants who seem most likely to be responsible.
Incentives can include gift boxes, subscription services, or even cash, as well. These perks can help tenants feel rewarded for being responsible. And they might just nudge those who’ve been late with payments to improve.
Handle Difficult Situations
Ideally, tenants will be thoroughly vetted on the front end. And they’ll make their payments on time each month. But sometimes, for one reason or another, that doesn’t happen.
That’s where a property manager can step in and take charge of the sticky situations property owners would rather not deal with. They’ll have the experience to communicate with tenants who habitually turn in payments late. And they’ll know how to defuse situations where tenants are unable to pay and unwilling to leave.
Property managers first will try to help tenants get back on track. This can entail learning about the circumstances leading to the missed payments. Ultimately, however, it may become necessary to confront the tenant and pursue legal action.
Property managers will know the state eviction laws if it becomes necessary to remove a tenant. They’ll also tackle all of the logistical matters that come with an eviction. That way, as the property owner, you can focus on bigger matters.
Make Rent Collection Easier
Don’t let rent collection become a headache. With a property management company at the helm, you can streamline rent collection while diversifying the types of payments you accept. A property manager can remind tenants about upcoming due dates and deal with missed payments, so you don’t have to.
At Next Level Property Management, we have the experience and professionalism to help make property management in the San Diego area better. We make paying rent easier for tenants and ensure property owners always have the latest financial information.
Contact us today to find out more!
