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Landlords are unique and so are tenants. While there are tenants that pay on time, there are also others who don’t. Late payments are one of the things landlords worry about. So what do you to make sure that your tenants pay monthly rent on time? Here are eight tips.
A good landlord must be prepared - prepared to care for his property and prepared to deal with all sorts of tenants. To make sure of that, you should screen your tenants properly. Check whether they are in good standing or not at a credit check bureau. Let them complete an application form. Contact their previous landlord and an important person who can vouch for them.
Let your new tenant know that you have set strict rules in your property regarding payment and that all the other tenants abide by them. Show them a copy of your list. Explain to them that there are consequences for late payments. Be consistent with your words and do exactly what you say.
If your tenants pay late, ask them the necessary questions why so to know their story. Maintain good relationships with them by hearing out their side. Show them that you understand them paying late but reinforce the fact that there will be consequences. Let them understand your business standpoint as well.
Good deeds deserve recognition. There is no other better way to encourage people to continue good behavior through rewards. If your tenants pay on time, a few days before due, or when you send a reminder, it’s good to offer an incentive. It can be a discount or a small token of appreciation.
Sometimes people just aren't motivated enough to follow rules unless there's a punishment. Tell them that late payments are bad for business as the money is very needed on time to maintain the place. Late fees are a strong reason to pay on time. Just remember to be legal about charging late fees as to not get in trouble with the law yourself.
Let your tenants pay you through automatic wire-transfers or online transactions. These methods allow you to receive rent without reminding them constantly. The payment will arrive on time automatically at the chosen day of the month depending on what method and manner of transfer you both have chosen. It also is safe and traceable in legal standing and lessens the chance of you receiving payments from funds that are acquired illegally.
Credit rating is very important nowadays as businessmen will always check them first before transacting with clients as a part of their screening process. On the view of a tenant, it is also important as it is part of their overall reputation as a person. They will usually strive hard to protect it which encourages them to pay on time.
So report their rent payment with precise information at credit check bureaus such as Experian, Equifax, TransUnion or Innovis. Not only does it help the tenant have a good reputation but also makes you, other landlords and businessmen’s screening process easier as well.
Tenants can be busy with their lives. They are either working or studying and will have a tendency to forget a monthly due with you. You can send them a message in different ways to be reminded. It can be by paper, text, call, email or you can remind them personally.
As a landlord, you have a ton of responsibilities to deal with. One of them is rent collection. Be ready to deal with this aspect. Having tenants pay rent on time can be done using the tips we discussed. With these tips, you can make your business thrive and maintain positive relationships with tenants.
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