If you’re wondering how to effectively and consistently collect rent on-time, a Coos Bay property manager can certainly show you how it’s done. Collecting rent is easy when there’s a process in place and the resources required to provide several different payment methods to your tenants. This often requires more technology and expertise than landlords realize.
We know a lot of landlords spend time chasing down late rental payments. That’s a waste of time. Instead, make rent collection a breeze. You can easily implement a system early and reinforce it with your tenants throughout the lease term. They need to know that you expect rent to be paid on time every month, in accordance with their lease agreement.
Ideally, you’re working with well-qualified tenants who have been screened for a history of on-time rental payments. Mistakes get made and deadlines get missed, however, even when you’re working with great residents.
As professional property managers in Coos Bay, we enforce our rent collection policies and ensure our owners get paid on time.
Here are some professional tips that can help you make rent collection easier than it is right now.
Start Strong with Well-Qualified Residents
The best way to manage late rental payments is to avoid them. One way to do that is with better tenants.
The tenant screening process may not seem like a part of your rent collection process, but it is. That’s because well-screened, qualified tenants pay rent on time. They also take good care of your property and follow the terms of the lease agreement.
How can you determine whether a potential tenant is likely to pay rent on time? There are a few specific indicators that can help you make good decisions when it comes to screening applications and choosing tenants.
Take a look at credit. A credit score doesn’t tell you everything you need to know, and even a credit report can be difficult to read when it comes to predicting a person’s ability to pay rent on time. But, there are some red flags that might give you the idea a tenant could be unreliable with rental payments. For example, prior evictions, especially recent evictions, might indicate that there were problems with rental payments. Any judgments or collection activities from former landlords and apartment communities might tell you that there is overdue rent.
Verify income. You want to make sure your applicant earns enough money to cover the monthly rent. Best practices in Coos Bay property management says that your tenant should earn at least three times the monthly rent.
Check rental references. By talking to current and former landlords, you can ask if the tenant you’re considering paid rent on time. If they paid late, find out how often that occurred, and how quickly they caught up.
Tenant screening touches everything you do when it comes to leasing and managing your property. Take the time to do a thorough job of finding the right tenant.
In Oregon, we have some extremely strict tenant screening laws. Make sure you understand what information you can and cannot use when you’re choosing a tenant for your property.
Establish a Rent Collection Policy
A good rent collection policy is essential if you want to make rent collection a breeze. These are some of the questions that your rent collection policy must address:
How much rent is due every month.
When rent is due and whether there’s a grace period. If there is a grace period, your rent collection policy must indicate how long that grace period lasts. When is rent officially late?
Any late fees or other consequences to late payments.
The method in which rent should be paid.
Whether there are charges for insufficient funds.
Your rent collection policy must be thorough and detailed. It should be included in your lease agreement and discussed with tenants before they move in. You want your residents to understand the importance of on-time payments.
Collect Rent Online and in Flexible Ways
If you’re only willing to collect rent with a personal check that you want delivered in-person, you might run into some trouble getting it paid on time.
Offer your tenants several different ways to pay their rent. The most popular rent collection process today is online. Most modern tenants want to automate their payments and do it via phone or app or laptop.
When you can provide a way for tenants to pay rent electronically, they’ll appreciate the ease and convenience. As Coos Bay property managers, we have an entire platform for rent collection through our tenant portal. It’s so easy that tenants don’t even have to remember to pay rent; they can have it automatically deducted from their bank account on the first of every month.
While online payments are the most popular way to pay and collect rent, it’s not for everyone. Offer tenants different ways to pay, even if it’s by check or money order. You want to meet their needs as much as possible when it comes to getting the rent in on time.
Be Kind but Consistent with Late Rental Payments
You’re trying to be a good landlord who is empathetic and willing to invest in good tenant relationships. And, tenants sometimes run into trouble. They might have an emergency expense they weren’t expecting, a late paycheck, or some unforeseen issue that prevents them from paying rent on time.
When this happens, follow your procedure. Charge the late fee. Send the notice.
We always recommend that landlords are willing to work with renters when rent is late by a few days, especially if they’re good tenants who typically pay on time. If they need an extra week, give it to them. If they want to pay half of the rent now and half on the 15th, put the payment arrangement in writing and remind them that if they default, you’ll need to move onto the next steps.
Eviction should be a last resort. If you establish a good relationship with your tenants, getting rent paid on time does not have to be difficult.
We’re here to help owners like you. If you’d like some help collecting rent on time for your Coos Bay rental property, please don’t hesitate to contact us at Oregon Bay Properties.
