One of the best things about being a property manager is the time of the month when it's time to collect rent from your tenants. However, several problems can arise if you're unsure about rent collection and doing it the right way.
We've created a rent collection guide that points out some of the most common rent collection mistakes and how you can avoid them. Read on now and learn how to avoid these issues below.
1. Failing to Charge Late Fees
When tenants sign their contracts to move into one of your properties, one of the things noted in the fine print is the late fees for not paying rent on time. There will be times when a tenant comes to you and has solid proof as to why they're not able to pay rent on time, and you may be inclined to waive the tenant fees for that specific situation.
However, the problem arises when you fail to charge tenants late fees at any time. While it might seem harsh to charge late fees, if you don't, some tenants will begin to take advantage of your system and make it a habit to pay their rent late all the time.
When tenants know you're serious about charging late fees, they're more likely to pay their rent on time to avoid them.
2. Not Documenting Rent Collection Problems
When tenants make late payments, do you document them? This is important, especially if you plan to evict them for failing to pay rent over time.
Without proper proof, it can become more challenging to evict them and can make the entire process longer than it's intended to be. Not only should you document that a tenant has failed to pay rent, but you also need to document other things such as:
- Attempts to collect rent
- Reasons rent has not been paid
- Any forms of communication between yourself and the tenant about rent collection
The more evidence you have, the better off you'll be and the closer you'll get to collect the money you're owed from the tenant.
3. Not Securing an Online Payment Portal
Gone are the days when a rent collection company manually collected rent from its tenants. Instead, most opt to offer an online payment portal for their tenants to pay online and set up automatic payments easily.
Doing this can allow you to send out rent reminders and make it easier to reduce the chances of tenants paying their rent late. Another reason for creating an online portal for tenants is so you can easily provide property information tenants need and reduce the number of appointments and phone calls you get.
Rent Collection Advice for Property Managers
When it comes to rent collection tips for property managers, there are several mistakes that you might not have even realized you were making. Mistakes that include not charging late fees and still accepting payments manually.
If you're in need of help to fine-tune your property management skills, contact Indianapolis Property Management today.