The United States is experiencing a massive influx of renters. What that means for landlords is a massive opportunity to start recouping or profiting on their housing investments!
That is of course if they're not struggling to collect rent from tenants.
Tenants who fall behind on rent and make rent collection a hassle can be the bane of your experience as a landlord.
Fortunately, there are strategies that exist that can help make your rent collection process smoother. Below, our team has laid out 3 of our favorites!
1. Make Payments Automatic
Nothing that adds consistency to rent collecting like offering automatic payments to tenants. With automatic payments, your tenants will set up profiles on an online rent collecting platform which will automatically ACH Withdraw their dues from their account at the beginning of each month.
Not only does this method of rent collecting improve your ability to make timely collections, it also makes paying rent much more convenient for tenants!
If you introduce an automatic payment option to your renters and you're noticing that few are opting in, consider offering an incentive like a nominal rent reduction for those who get set up with auto-payments.
2. Be Stringent in Your Tenant Selection Process
No amount of tenant screening can mitigate 100% of your risk in bringing in an irresponsible renter. You can improve your chances of housing consistent rent payers by taking your vetting process seriously though.
To find good tenants, first, you'll need to set criteria. Ensure that all criteria you set are legal under discrimination laws in your state. Also, always enforce criteria consistently among applicants.
Items you may want to include in your renter's criteria are income requirements, good credit, and 2-3 references.
3. Bring On a Property Manager
The tips above scratch the surface of how you can create more consistent income for yourself by bolstering your rent collection practices. To get everything we've mentioned above implemented and take the headache out of being a landlord with other great perks, bring on a property manager.
Property managers will enforce your rent collection policies. They can also screen your tenants, handle maintenance requests, enforce evictions and so much more!
Bottom Line... To really make your investment perform for you on auto-pilot, there is nothing more effective you can do for yourself right now than find a reputable management agency.
Wrapping Up Rent Collection Tips to Ensure Timely Payments
If you're struggling to collect rent from your tenants, we suggest implementing the tips above. Adding convenience to collecting by enabling auto-pay. Screening your tenants more closely...
You'll find that either of those proactive efforts will increase the smoothness of your rent collection.
And remember, to create consistent and automatic revenue from your rental properties, there's no better option than hiring a property manager.
To that end, do you own a property in the Inland Empire, San Gabriel Valley or Orange County areas? If so, our team at Clockwork Property Management can assist!
We've been helping clients like you save time and increase the value of their investments for years. Allow us to take our expertise and do the same for you!