Do you dread rent collection day? Are you looking for ways to make the entire process better for you and your tenants?
Collecting rent isn't always an easy task, but it's vital to the success of your business.
That's why we've put together this quick guide that'll help you learn how to tackle rent collection in a professional way. Keep reading to learn all you need to know to improve your skills as a landlord!
Choose a Consistent Method
When you're dealing with money, you must have consistency in the transaction. You don't want to show up at your tenant's home asking for rent one month and then send a letter the next.
There are several ways to collect rent, such as in person, through a tenant portal, or by regular mail. No matter which method you choose, make sure you stick to it.
This helps create a stronger relationship between you and your tenants. It also makes the process easier for everyone involved.
Don't forget to set a consistent collection date, as well.
Keep a Justifiable Price
When a tenant looks at their rent bill, they need to understand the different costs. Increases and decreases in rent are expected, but they still need to be justifiable.
As pricing changes, make sure to show your tenants the why behind the change. They'll feel more comfortable with the pricing, instead of instantly angry at the prospect of paying more.
Whenever you're uncertain if you're asking the right amount, hire a property manager to help you figure out the numbers.
Set Payment Guidelines and Penalties
Not every tenant will give you their rent on time, and you need to prepare for that. Before you rent a property to anyone, you'll need rules in place for every situation.
Share these guidelines with your tenants so they know what to expect. They'll know the penalties waiting for them if they're late with a payment, and you'll know how to deal with it.
The key to a successful rental business is to treat every situation with the same guidelines.
Be Understanding and Firm
As you gain years in being a landlord, you'll run into all kinds of situations. Not all of them will be easy.
Sometimes tenants will need to skip out on rent due to illness or the death of a loved one.
You'll need to stand firm on your penalties for most situations, but sometimes it's a kindness to grant leniency. It's your job to find the balance between compassion and professionalism. The conversations will be hard at times, but they'll get easier as you gain experience.
Rent Collection Doesn't Need to Be Difficult
It sometimes seems like an overwhelming task, but there is a simple way to make rent collection easy. A full-service property management company can take over the hassles of collecting rent for you.
We've spent over 20 years helping property owners collect rent. Lower your overall stress by letting us help you, too! Take a look at our services to make sure you're getting the most out of your rental property!