Do you have a hard time getting rent paid to you on time? If you constantly feel like you have to pester your tenants to get their monthly rent in then here are a few suggestions that might help to make your job a little bit easier.
A Clear Rent Agreement
Before you ever take your first tenant, make sure you have all of your legally binding paperwork ready in case you ever find yourself in a sticky situation. You need to state what day rent is due and how long the grace period is. If rent isn’t, paid what are the consequences? Is there a late fee? How much will the late fee be? How long after not paying rent do they have before they receive an eviction notice?
These are important questions that you have to ask yourself so that you can get the proper information to your tenants and have the documentation to back you up if people don’t abide by their lease agreement. Stay informed with local and state laws and regulations in regards to renters so that you know your rights as a creditor.
People appreciate being able to pay their rent from the comfort of their couch. In the day of computers and smartphones do yourself a favor and make rent payable online. If you really want to make things easy for yourself and your tenants, set up direct payment options for your tenants. This will help to skip the, “I forgot to pay rent,” conversation because rent will automatically come out to pay for itself each month.
One of the top ways to ensure you have good tenants who pay their rent on time is to do a careful and thorough screening process. Check their credit scores. Don’t be afraid to contact their previous renters and ask what kind of tenants they were.
You want people in your rental space who will be honest and upfront with you as well as get you the money you are owed on time each month. If you think it will help, always schedule face to face interviews so you can talk with them and get a feel for what kind of tenant they will be.
As difficult as this may be you need to stay consistent with your tenants. If you are lenient once about the rent then they might try to take advantage of your kindness. There may be times when a tenant can’t pay on time due to a late paycheck or something of that sort, and that is at your discretion to give them a one time slide, but as a whole try to stay consistent.
If the lease agreement says that a late fee will apply after 3 days of unpaid rent, then make sure you add the late fee. If you don’t, then you are just creating more work for yourself in the long run.
Don’t forget that your tenants are people, too, who are most likely trying to live their best lives. Typically if you work hard to be a good renter the people renting your building will reciprocate and be good tenants.