More than 8 million people are late on rent right now country-wide. There are plenty of reasons that this could be the case. While rising housing costs are definitely part of the problem, there are other rent collection problems that could be contributing.
Some of those problems are easily solvable by smart landlords.
We're here to talk about how to collect rent the right way to minimize latenesses so you can get your money on time. Read on to learn more.
Confusing or Inefficient Collection Methods
A long time ago, if a landlord was going to collect rent, they were going to take cash or a check in person. This is how many older adults know how to pay and accept rent payments, but is it really the best option?
Nowadays, most people don't carry cash or use checks. Some younger people have likely never written a check in their lives. This isn't a problem with them; it's just a sign that times have changed and landlords have to make adjustments.
Checks can be inefficient. After you collect your money, you may have to wait to deposit it.
If tenants are mailing you a check, it could take a few days to get to you. If you rely on your rental income, this is a problem.
We recommend setting up an online tenant portal so collecting rent is a breeze for you and your tenants alike. Tenants will be able to attach their credit or debit cards right to the portal so they can pay whenever they like with ease. If a tenant doesn't have a credit or debit card, they can attach the portal right to their bank.
This also prevents you from losing payments. It's far easier to misplace a check than to misplace an online payment.
This isn't to say that you shouldn't allow tenants to pay with checks or cash. Some people may not be willing to let go of the old-fashioned way of doing things. Online payments should be the primary method of rent collection, however.
Consistent Latenesses
Do you find that your tenants always pay rent, but it isn't always on time? If this has been a consistent problem, it might be something you're doing wrong (or at least something you can fix).
First, if rent isn't due on the first of the month, you've already set yourself up for problems! This is what people expect, and if you change the date, they're likely to be late.
Even if your tenants moved in during the middle of the month, pro-rate the rent and make it due on the first anyway. This is so there's never a mystery about the due date.
Setting up the online portal will also help with lateness, especially if you set up email reminders. People will be notified if they haven't yet paid rent.
If it's only one person with consistent latenesses, we recommend talking to them instead of jumping right into legal action. It may benefit both of you to set up a payment plan or adjust the date for them specifically if they get paid on a certain day of the month.
Fix These Common Rent Collection Problems
Managing rent collection doesn't have to be a hassle. These rent collection problems happen from time to time, but with the right methods, you can fix and prevent them!
Are you looking for help with your rental property in Jacksonville, FL? We've got you covered. We offer property management services so landlords can relax.
Contact us for a free rental analysis today.
