According to the National Equity Atlas, there are 5,125,000 households behind on rent. They've created an estimated rent debt of $9,883,400,000.
It's a massive hole that's just as difficult for landlords to climb out of as it is for tenants. How can they ensure they get rent on time, every time?
Read on for three essential tips for easy rent collection in New City, NY.
1. Use Rent Collection Software
One of the biggest problems with rent collection is that it can take a long time. You spend all day going from door to door, waiting to get the rent you're owed.
Using the right software makes it much faster and easier. Online rent collection platforms such as tenant portals streamline the process for landlords and tenants.
Set up automated reminders and offer multiple monthly rental payment methods. It reduces the likelihood of late payments.
Using rental software stores and provides up-to-date records. You'll get up-to-date information to check if anyone is behind on payments.
The right software is also secure. You and your tenants don't have to worry about your financial data getting leaked.
2. Screen and Communicate With Tenants
The best property management tips is to always be proactive. Work to solve minor problems before they become a major issue.
Tenant screening may be a landlord's most powerful proactive tool. It's one of the most essential tenant management solutions, but it's also directly tied to rent collection. If you screen them properly, you won't have to worry about delinquent tenants who won't pay.
One of the best landlord rent tips is to make all your policies clear. Leave no questions unanswered about:
- Due dates
- Payment terms
- Acceptable payment methods
- Grace periods
- Late fees or overdraft fees
Communicate with your tenants and respond to their requests. Fostering a positive relationship with them. It decreases your vacancy rates and keeps a steady stream of rental income flowing in.
3. Offer Incentives
Many effective rent strategies can help you incentivize tenants to pay every month. Even the best ones may need a bit of a push during a stressful time.
Reward the ones who always pay their rent on time. Everyone wants recognition. Consider giving them incentives such as a temporary reduction or a gift card to a local business.
These rewards can be the carrot at the end of the stick to keep your loyal tenants paying. It can also encourage those who are behind to handle their back payments.
A fitting property upgrade is another incentive that can keep tenants in your property. It's also a way to justify a rent increase. A few of the best options include:
- Upgraded kitchens
- Modern bathrooms
- Energy-efficient features
- Exterior cleaning
Let Property Managers Handle Rent Collection
Three keys to making rent collection easier include using software, screening and communicating with tenants, and offering incentives for on-time payments.
PMI Properties is a full-service property management and real estate brokerage service. We work to preserve your investment while setting the maximum rent each month. Contact us to grow the profitability of your investment today.
