A Dunedin, Florida landlord can expect to earn more than $50,000 per year, but only if tenants pay each month. Unfortunately, this is not always the case, which can affect cash flow and leave landlords out of pocket.
However, the best property managers use effective strategies to reduce the chances of tenants missing payments. This means landlords can enjoy making a passive income while knowing that their rent collection processes are in good hands.
Read on to learn hassle-free ways to get hold of rent payments.
Credit Checks During Tenant Screening
A thorough tenant screening process should involve carrying out a credit check. This will help establish if a potential tenant has a history of missing payments which could be a red flag.
A property manager should also gather references. If previous landlords confirm that tenants have a good payment record, this can give you confidence that you won't have issues when collecting rent.
Clear Rent Payment Policies
Your rental contract should have clear policies explaining how much the rent is and when tenants need to pay. There should also be explicit reference as to the penalties that could occur should rent payments be late.
These could include monetary fines, or even eviction in severe circumstances. You won't necessarily need to use these deterrents, but it's important to state them so tenants know where they stand.
Sending Rent Payment Reminders
Another of the most proactive rent collection strategies you can use is sending reminders a few days or a week before payment is due. You can easily set up automated email reminders, or you can send text messages if preferred.
This will help ensure tenants don't overlook when they need to pay their next rental fee.
Simple Payment Options
It can be useful to provide streamlined tenant payment methods that make it easy to transfer money. For example, you can have a tenant portal that allows renters to pay online 24/7. Or you can provide an automated debit option that means tenants don't have to remember to pay each month.
The simpler the payment methods, the better the chance you'll receive the right amount at the right time each month.
Fast Payment Processing
Not all payment processing companies are quick, and some can keep your money for many days at a time. A good property management company will ensure efficient rent collection by using a fast payment processor that gets the money into your account as soon as possible.
This means you can relax and wait for your rent payments to arrive without having to lift a finger.
Let PMI Palms Manage Your Rent Collection Needs
Rent collection can be stressful, but it doesn't have to be this way. By using these tips, the payment process can be straightforward and allow you to receive regular payments every month.
At PMI Palms, we're a full-service real estate asset management company with years of experience collecting rent. We understand the problems faced by landlords and tenants and work hard to find solutions that ensure you get paid on time.
To learn how we can make your rent collections easier, contact the PMI Palms team today.
