Ways to Reduce Late Rental Payments
When you bought your property and dedicated to being a landowner for the first time, we bet you did not know the difficulties and issues that might come with it. Property wealth is a very lucrative and interesting investment if you know how to tackle it properly. People give their houses for rent without experience and late payments, utility bills, destructive tenants make the experience very unpleasant. You get modular homes and give up cheap apartments for rent, but in return, you get unruly tenants and late payments. We know how stressful it is.
We don’t have the solutions to all your problems, (We might have, check the other blogs), but the problem of late rental payments is persisting and can cause a lot of instability in your income and wealth. So we are here to bring forward certain solutions for you to apply and get rid of the issues.
If the payments don’t come in time, it becomes harder for the landowner to make further payments. Repairs might get delayed. Constant late payments are nothing but a vicious cycle you don’t want to get into. Here are some tips for you.
1.Have a payment reminder system
There are different apps or tricks in the market that will remind your tenants that their payment is due, or late if they haven’t paid it yet. A simple text message or an email might also do the work for you if you do want to make it complicated. This will inculcate a sense of responsibility in your tenant because no one likes to be reminded of payments every now and then; it shows them how they’re failing as your tenant.
2.Change the due date
If you rely on your rental payment for making other payments such as electricity bills, repairs, vendors, etc, then you might want to adjust the payment date to a period before your other bills are due. This will give you a cushion period, where even late payments will not disrupt your other cycles. If you are giving houses for rent, adjust the monthly rental to an earlier date.
3.Have better communication
If you think your renters are good people, you might want to have direct communication with them too. Reach out to them to know if there is something personal that is preventing them from making timely rental payments. If that’s the case, you can accommodate their problems if you want. This will also build a good relationship with the person who is using your property.
4.Have a late fees clause
While drafting the lease agreement, make sure you put up a late fee clause also with a proper stipulated time period. This will allow you, renters, to know that they’ll be penalized for late payments. Sometimes landlords put the clause but don’t implement it properly which causes issues later on. So even if you put the clause, make sure you are implementing it every time.
5.Atomic Payments system
One of the best ways to collect timely payments of rent is to have property management solutions that enable automated electronic payments. Consider discussing this option with the renter while you’re signing the agreement. This way every month, you will get the payment on the exact date. It is also favorable to the renter since they don’t have to take the physical cheque and do banking compliance’s every month.
6.Improve the resident screening process
If you have more than one tenant, and most of them or many of them are making late payments, it’s time to consider your own faults. Maybe your implementation system Is not that great or your screening process needs to be tightened. Next time you go to sign another agreement, keep stipulations regarding minimum income, guidelines, employment type, etc so you know your tenants are good standard ones. It will help you get good, trustworthy, and timely paying renters.
7.Don’t excuse any behavior
Unless it is an extremely problematic situation for the tenants, do not tolerate the unprofessional behavior of your tenants. This applies even when you have a good relationship with them, don’t forget the professional arrangement ever.
8.Hire a property manager
If you have enough income to afford a property manager, this is the best way to have a hassle-free rent income. They implement a strong guideline system, screening process, payment structure and ensure consistent cash flow to you. They also help in future expertise advice for further rental agreements.
If you are also preparing modular homes and willing to give them on rent, please make sure you are following these guidelines for a hassle-free tenant-landlord relationship.