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One of the most integral parts of being a rental property owner is, well...collecting rent.
Rent collection isn't a cakewalk, as some new property owners tend to assume. Getting your tenants to pay you on time every month requires some work on your part, but it doesn't have to be rocket science.
Today, we're going to give you a helpful guide for collecting rent from your tenants. Keep reading and you'll see that collecting rent the right way is the key to not only getting your money every month but also building strong relationships with your best tenants.
Build Your Policy Into the Rental Agreement
When you give your tenant the rental agreement to sign, it should be clearly outlined what you expect from them as a landlord. It should clearly state what the monthly rent payments are, what sort of grace period you give, and what happens when a tenant doesn't pay their rent or consistently makes late payments.
The more you have in writing, the more protected you are should you have to attempt to evict a tenant because of late rent. If you need help drafting up a rental agreement that adheres to these principles, you can find a lot of examples online.
Look Into Property Management Help
Being a property investor is undeniably an exciting and rewarding way to make money. That being said, if you're expecting passive income from your Atlanta rentals, you're in for a surprise. Even a seemingly simple task like rent collection can take up a lot of your time, so if you're working full-time, you may want to consider property management.
Full-service property management like ours can help you maintain your property, as well as advertise it to qualified renters, collect rent on a monthly basis, and deal with any delinquent payments on your behalf. Having all of this taken care of for you can put your mind at ease, knowing that you'll just see the rent money in your bank account every month.
Make It Easy for Your Tenants
Property management or not, you have to make it easy for your tenants to pay you rent. This means opening up multiple channels for them to do so, as different renters are comfortable with different things.
For example, most younger tenants are going to want to pay you through a money transfer app, like PayPal or Zelle. Older renters are going to do it the old-fashioned way with cheques, or even in cash. To make it easy for them, you should accept post-dated cheques and even offer to pick up the rent from their apartment or a dropbox every month.
Grace Periods and Late Payments
Naturally, you're going to end up with tenants that make collecting rent like pulling teeth, even if you make it easy for them. In these scenarios, there should be a clear grace period (usually a few days), after which you can start to take action.
You want to straddle the line between accepting certain circumstances and being stern to ensure that you're actually getting paid. If it's a frequent scenario or you aren't getting the payments at all, you'll have to take the first steps to evict the tenant.
Rent Collection Made Easy
Now that you know what to do with rent collection, you can implement these steps into your rent collection process. Rent collection can be easy, but it starts with finding great tenants and ends with you meeting them halfway.
If you love having rental properties, but hate the hassle they can cause, then you should hire a property manager. Visit our website today to learn more about what we do and then contact us to discuss how we can help you run your Atlanta-based property the best way.
