About 6% of the nation's adult renters are struggling to make rent. As a landlord in Littleton, CO, such statistics can make you nervous.
Timely rent collection is vital for covering your mortgage, property taxes, and maintenance costs. While late or missed rent payments are a reality for many landlords, there are steps you can take to streamline your rent payment process.
Below are 4 tried-and-tested rent collection tips you can implement in Littleton, CO.
1. Make Rent Collection Easy and Convenient
When it comes to rental collection, convenience is essential. Offer multiple rent payment options to make it easier for your tenants to pay rent on time. Here are some tenant payment strategies you can use:
Online Rent Payments
Online portals allow tenants to pay rent electronically using their debit cards, credit cards, or bank accounts. This method will provide a clear record of on-time payments.
Automatic Payments
Another landlord collection advice to implement is the use of automatic payments. With this option, tenants can authorize a recurring payment to be deducted from their checking account each month.
Traditional Payment Methods
While online options are more popular, some tenants may still prefer traditional payment methods. To cater to them, ensure you accept checks or money orders as well.
2. Implement and Enforce a Late Fee Policy
A clearly defined late fee policy discourages late payments. It also compensates you for the inconvenience caused.
Make sure you specify a grace period within which tenants can pay rent without incurring a late fee. This can be 3-5 days after the due date.
Determine the amount of the late fee. You can charge a flat fee or a percentage of the monthly rent. Ensure your late fees comply with local landlord-tenant laws.
Additionally, enforce the policy consistently. Don't waive late fees for some select tenants. This can create resentment and a bad neighborhood.
3. Screen Your Tenants Carefully
While efficient rent collection methods are vital, it's good to rent to tenants who are financially responsible. This is why you should consider tenant screening. Do a credit check to get insight into a potential tenant's financial history as well as their history of on-time payments and credit score.
Verify a potential tenant's employment status and income. This helps ensure they have the financial means to cover rent each month. Additionally, you can contact previous landlords to inquire about a potential tenant's payment history.
4. Maintain a Professional and Positive Communication Style
Clear and consistent communication is one of the most important property management tips. Schedule automated email or text message reminders a few days before the rent due date.
These gentle nudges can serve as a friendly prompt for tenants who may forget. Even if you're frustrated with a late tenant, remain professional.
Qualified Property Management Can Help Streamline Rent Collection
Rent collection can be efficient if you follow the aforementioned rental income tips. This will ensure a steady flow of income thanks to efficient monitoring.
Need help with rent collection? PMI Little Town is your go-to property management company. With over 20 years of experience, we'll help you maximize your rental income. Get in touch with us to schedule a consultation.
