To collect rent money is the most important amongst landlord’s duty list. If we ask a group of landlords what their biggest issue with the business is, late rent payments will be at the top of the list. Property owners generally have a problem with the transactions as tenants often come up with excuses and pay rent later than due.
For a business owner, receiving a profit later than planned can be the root of huge financial issues. If you are a property investor and have a hard time strictly asking for the rent money when the time comes, you need a strong rent collection system.
Property Management Companies
Receiving help from professional property managers is always a good option. You can get all the assistance you need and you won’t even have to get involved with the process while gaining the income on time.
Property management companies often have strong enforcement systems and they use software to collect money with no issues. They often have a list of tenants and send automatic reminders as well.
The system proves itself to be effective as the tenants seem more respectful of companies and their methods than of individual landlords. Tenants are more likely to pay rent on time if a team of professionally trained property managers asks for it with official documentation and letters. Such companies often have partnerships with credit scoring data providers making your job much easier.
Another great advantage of asking property managers to collect rent is that you get to spend more time freely with your family or enjoy your hobbies. Meanwhile, the professionals will keep track of your assets.
However, not all property owners can afford to hire professionals at the beginning of their business journeys. Therefore, you should consider other available and effective options to collect rent as well.
Use Online Payments to collect Rent money
The safest way for a landlord to receive and keep the rent money is to use online transactions. Using mobile banks is much easier than collecting cash, as you can receive the money within seconds. Moreover, you can ask for the money online without even having to contact your tenants personally.
By collecting rent via online transactions, not only will you receive the money quickly and on time, but you will also be able to keep a record of your earnings and profits from the business. Therefore, no matter how far you are from your tenants, you will be able to get the money on time and smoothly.
Online banks have a feature that allows you to request money from individuals,in order to collect rents. If you prefer to receive the rent money using bank transactions online, you can simply send requests to your tenants when the time for rent payment comes.
The tenants will get a notification when you use this tool and they will know that you have not forgotten either. This is a brilliant way to ask for the deserved payment without having to have an awkward conversation. In this way, landlords can collect rent on time.
Another option that online banks give you is to create a standing order system. The transactions between you and the tenant will happen on their own automatically each month and you will not have to worry about them missing the due date. This is the best way to collect rent money.
Automatic systems are usually the most convenient ones, as the program never misses important dates and does the job very well, within seconds. This is also a brilliant option for property owners who have multiple tenants in different areas. If you forget to collect the rent the program will send it to you on its own and you won’t have an issue with the vacant. Paypal, Venmo, Wise, and other applications are easy to use and they will be very comfortable for you.
Set a Late Rent Payment Fee
If your tenants don’t want to pay rent on time, they will surely refuse to pay fees. By setting a late rent payment fee at a certain rent money percentage, the renters will be forced on time. The tenants are more likely to try to pay the rent on time if they face consequences. When you put your foot down and set a “punishment” for breaking the policies, the tenants will take you more seriously.
If, however, your tenants fail to pay the rent on time, you will gain some extra cash when they do make a payment to make up for the lost time.
Earning a passive income is not as easy as some think and landlords know it best. Running after tenants to collect rent on time gets very exhausting. Therefore, property owners need to come up with powerful strategies and plans to expand their businesses and earn a profit.
You can achieve your goal by using several ways. Using online bank features such as automatic transactions and money requests is very helpful, hiring professionals who provide services like- to collect rent. Using these services gives you huge advantages and setting fees will surely make the tenants want to pay on time.