Property Management Blog

A Landlord's Guide to Rent Collection

A Landlord's Guide to Rent Collection

Today, almost 18% of renters are behind in rent payments. Even worse is, the average delinquent renter owes around $5,600!

While many Americans have fallen on hard times because of the pandemic, landlords like you still need to eat and pay bills, after all. 

So if you're having trouble with rent collection, it's time to stop stressing. Here's a quick guide on how to collect rent successfully!

Communicate With Tenants Clearly

Be clear with both old and new tenants about when rent is due and when it'll be considered late. You should tell them how much the late fee is.

In addition, let them know the methods by which they can pay rent and when (if it needs to be in person). For example, you should have a document in the rental office outlining payment methods (such as debit card, credit card, check, etc.) and when your office hours are so they can drop by when you're around.

Make Online Rent Collection Available

If you don't already have online rent collection as an option, you need to get it ASAP. Today, 93% of Americans use the internet and many are heavily reliant on their smartphones.

If you give these people a way to pay rent online, we're certain that it'll be a lot easier to collect rent! When all they have to do is tap or click a few things from the comfort of their homes or while on the go, your tenants will be more motivated to pay rent on time.

Offer Discounts for Paying on Time

Another way to motivate your tenants to pay rent consistently is to offer discounts for doing so! This is one of our best tips for collecting rent, and it doesn't even have to be anything big that eats into your profits.

For example, offer $50 off a month or two's rent if they sign up for direct debit. This is a sure thing and will be worth giving $50-100 off rent if it means you don't have to go through the hassle of chasing renters up for money.

Enlist the Help of Property Managers

Do you find confronting tenants about rent uncomfortable? Do you have better ways to spend your time? Then property managers can help!

They can collect rent on your behalf so you don't have to worry about a thing. Better yet is, if your renters pay late, the property managers will serve them with late fees. And if they don't pay at all, they'll help you evict the delinquent tenants and get more responsible renters through the door!

Make Rent Collection Easy

Rent collection might be a tough subject, but it needs to be taken care of efficiently. Otherwise, you won't have the funds to keep up with piling bills and other expenses.

If you don't want to deal with rent collection on your own, then you should use property management services such as ours. We'll do all the hard work for you so you don't have to!

Need more help with your landlord duties? Then contact us today. We've been serving local Charlotte property owners ever since 2008!