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Five Simple Steps that Help to Mitigate Late Payment for Rental Properties

It should never come as a surprise when things don’t go to plan – after all, this world is ripe with uncertainties. However, as a property owner or manager, your focus should always be on getting your profits up, not on understanding your tenants all the time. While it is necessary to sympathize with your tenants, there must be a limit to your patience when faced with late payments.

It is even better to avoid that unpleasant position in the first place. However, doing so will require that you try to incorporate the following steps into your management plan and methods.

Payment Aide-mémoire System

The biggest connection between you and your tenants is the rent. It only makes sense that you make it a point of duty to keep this common ground of acquaintanceship open with reminders. This will push the early payment of the rental fees right up the priority list for the tenant. 

You should start this process by finding out which method of communication your tenant will prefer before the lease is agreed. Then pass the reminders to the tenants a few days before, as well as on the agreed day of remuneration. However, be sure to moderate your efforts, so you don’t cross the fickle line that constitutes harassment.

Observe and Investigate Habitual Late-Payments

No matter how solid your reminder system is, it is only strong enough to avoid problems with tenants who routinely forget to pay on time. In many unavoidable cases, you might need to directly consult those who you might have marked out for paying their rent late. You will be surprised by what a few minutes of dialogue might yield.

For example, if the agreed date of rent payment is a few days ahead of when the tenant receives their salary, they will most likely pay late throughout their stay. For a situation like that, you can then use this knowledge to design a new payment schedule that they will be comfortable with. In any case, getting to understand the circumstances behind late payments is crucial to keeping the late payments at bay.

Set up Electronic Payment Channels

Take advantage of the speed and convenience of online transactions with platforms that will assure automatic rent transfers. This is not to say that you should enforce the use of online payment systems on people that would rather use checks – everybody has their preferences. Nevertheless, for those tenants that go along with it, and if you factor in any additional costs that might set in from online transaction charges, you will find you and your tenants can enjoy a more fluid relationship.

Readjust the Expected Date of your Mortgage Payment

As nice as it looks on paper that your mortgage will be taken care of by the rent that will automatically be in your account, make the cautious step of negotiating with the moneylender to fix a new schedule that aligns with your rent payment date. That way, when the mortgage bills come in, it will only be triggered by the rent payments.

Employ the Services of a Professional

Professional property managers exist for the sole purpose of helping you get the best results from your property. They are usually equipped to do all the above listed steps for you, without you having to bother you about any details. This has the all-too-important benefit of allowing you to spend your valuable time doing other things.

Adept property managers will help you with sensitive tasks like screening tenants, and even marketing strategies – if the need ever arises. Also, from their garnered experience, there are a few unique circumstances, opportunities, and pitfalls they will realize a lot earlier than you will be able to.

Posted by: propertymanagementgroup on November 25, 2019
Posted in: Uncategorized