.jpeg)
To make your property investment worthwhile, you need to be collecting rent from your tenants every month. Rent collection might seem complicated, but it's one of the most basic parts of being a landlord. Tenants expect that they'll have to pay rent!
We're here with a few rent collection tips to make your life easier. Read on to learn all about the rent collection process and what to do if something goes wrong.
When to Collect Rent
As soon as your tenants sign their lease, you can collect the first month's rent from them. If they sign the lease in the middle of the month, make sure that you're only making them pay for the days that they're going to be there. But what about after that first month?
It's in your best interest to have your tenants pay rent on the first day of every month (but give them the ability to pay a few days ahead of time just in case they're busy on the first).
The reason that landlords stay consistent with rent payments, rather than allowing tenants to pay every month from the day that they signed the lease, is that it's easier for all parties involved.
For tenants, remembering to pay on the first of the month is easy. There's never any confusion and they should be able to budget for that payment even if they only get paid monthly.
For landlords, it helps you keep track of payments when they're all coming in around the same time.
How to Collect Rent
Many landlords try to stay "old-school" with their rent collection. If they've been renting out properties for a long time, the idea of modernizing how they collect rent might seem absurd. Why change it?
While collecting rent via cash or check in-person or in the mail might make sense to you, keep in mind that many younger tenants no longer use checks often. They rely on digital payments and credit cards.
Instead, we recommend setting up an online payment portal for your tenants. They can set up auto-pay so there's never any confusion when it's time to pay rent. You can also use this portal to send them notifications before their rent is due.
This is the quickest and most convenient payment option. You can still offer alternative payment options for tenants who are less tech-savvy.
Late Rent: What Now?
Even good tenants can forget to pay rent on time. How should you handle late (or missing) rent payments?
First, send out a notification to your tenants. Often, the tenant just got too busy with their day-to-day life or they thought that they submitted their payment but didn't finish the process.
It's helpful to have a grace period after the due date that lasts several days before you penalize the tenant for late rent.
If the tenant still doesn't pay, send them a written official notice. They may be having a problem with rent payments due to losing income or a family emergency. Consider working together with your tenant to create a payment plan rather than jumping right to eviction.
Rent Collection Doesn't Have to Be Hard
Rent collection might make new landlords nervous, but don't worry! Your tenants expect to pay their rent on time. They knew what they were signing up for when they signed their lease!
Always collect rent on the first of the month, make payments accessible, and know how to handle late rent payments.
Are you looking for help with managing your rental property in Harrisburg, Pennslyvania? Our professionals at HomeRiver Property Management want to help! Contact us so we can start working together today.
