Collecting rent is one of the most important aspect of being a Landlord; for some, it is THE most important aspect! If the rent is not paid you are not getting paid making your investment less than profitable.
If you own investment property for any length of time you are going to run into late payments and/or, the dreaded, no payment at some point in time.
Here are some tips to ensure timely rent payments:
- Make sure your lease clearly outlines due dates and grace periods.
- Implement and enforce a structured late fee.
- Ask residents to have their rent automatically deducted from their bank account.
- Have multiple options for automatic payments such as ACH debit and online bill pay.
- Create and utilize clear eviction plan.
- BE CONSISTENT!
Consistency is key! If you allow a resident to continually make late payments you are setting a precedence and are increasing the odds of that resident taking advantage of you.
That being said, you do not need to be heartless. Things happen! If your longtime resident comes to you and asked if they can make their payment in two installments this month, I am not telling you that you cannot work with them. Everyone deserves one “get out of jail free” card just don’t let it become a habit.
Make sure that you have a clear eviction policy in the event your tenants fail to pay the rent. You will need to have the correct forms and a way to get the eviction served. It is best to seek legal advice if you are doing your first eviction to make sure that you follow all local, state and federal laws.
If you have found yourself in any of the above mentioned situations before or don’t think you will be able to put your foot down when faced with late payments you should consider hiring a property manager. Give KPM a call today.