When come to collect rent, not every rental collection method is right for every landlord. Looking at these few factors can help you determine the method that will work best for you and your tenants.
If you live far from your rental unit, hiring a third party to collect the rent or request tenant doing an may be better options for you.
2. How many tenant you currently deal with?
If you have own 20 rental units, you probably don’t want to personally knock on 20 doors to collect rental on the first of every month. You will want a more easy and efficient way to collect rental
3. Are you OK with Technology?
If you are not comfortable with technology, you may prefer to collect the rent in person.
4. Desire to Interact With Your Tenants:
You may only have two rental units and may live less than a 5KM from your rental property but prefer to have a more hands-off approach to managing. In this case, an online funds transfer or WhatsApp may be the best ways for you to get your rental
Perhaps you can consider a hassle free solution
RentGuard rental system provides a hassle free solution on rental collection support credit and debit card by automatic deduct tenants rental and deposit it to landlord bank account.
RentGuard Rental Collection – Free up your time
Why using rental system is much easy to handle tenants?
Automatic collect rental
Due date reminder via email / SMS
Automatic invoice and receipt generator
Multi collection method – credit card / saving account / current account
Managing rental properties & collect rental can be a profitable business as long as you manage your cash flow well and collect rent on time. In fact, the biggest factor in your cash flow will be your ability to collect rent on time.
As a landlord or agent, you may have chance to have a tenant who pays rent late – or not at all.
Here are seven tips for collecting rent on time and handling tenants who have trouble paying rent.
1. Make it Automatic
Requiring tenants to pay rent via an auto-pay or auto-deduct system is the best way to collect rent on time. There are even multiple systems that will deposit the money automatically to your bank account. The major benefit is that this eliminates the factor of human error – i.e. tenants “forgetting” to pay rent.
RentGuard rental solution provides a hassle free on rental collection with credit card and debit card to deduct the tenants rent money and deposit it to landlord bank account.
2. Choose Your Tenants Wisely
Only rent to qualified tenants with a great rental history. No surprise here, right? When screening tenants, you will see the entire gambit of credit ratings. Some prospective tenants will have an excellent history paying bills, but others will have downright terrible payment habits.
Tenant Income statement: At the very least, this should include regular income equivalent to three times the rent amount or more, and an established history of paying rent on time with past landlords.
Good Attitude: Tenant with good attitude always easy to handle and deal with as compare to tenant with lots of request and complaint.
Check References: I believe that the best predictor of future behavior is past behavior. Therefore, thorough verification of the application information is critical to paving the way for prompt, full rent payments. Always call the previous landlord and ask “would you rent to them again?“. Keep in mind that a previous landlord does not have to tell you anything, but it doesn’t hurt to ask!
3. Exercise a “No Cash” Policy
Accepting cash as a rent payment is never a good idea. I know it’s tempting, but as I discuss in the article “Danger Danger, Be Cautious of Cash“, just don’t do it.
Cash is too easily lost, leaves no paper trail in the event that your tenant disappears, and may sometimes imply that your tenant is involved in illegal business activities.
You can eliminate these risks by establishing a policy in which you do not accept cash as a payment for rent.
Serve a legally sufficient notice of your “no cash” policy and advise your tenants of acceptable ways they can make their monthly payments, such as check, money order or direct debit. Remember to communicate this policy in your lease or rental agreement.
4. Enforce Your Rent Collection Policy
To ensure regular, timely rent payment, keeping your collection policies firm and consistent is the industry best practice – but there are few exceptions.
In your lease, you should address all payment related issues including the:
exact amount due every month
where payments are made
acceptable payment methods
when rent is due, grace periods
the consequences of bounced checks or default.
At one point or another you may feel sorry for a tenant falling on hard times, or simply be in too much of a hurry to charge a late fee. If you are sure that a good tenant is only experiencing a “just this once” type of issue, feel free to cut them some slack.
However, to keep them from taking advantage of your generosity in the future, be firm about your policy from then on and don’t make a habit of being lenient. Let them know that rent should always come first in regards to paying bills and that their delinquency results in costs that will be passed on to them. we suggest forgiving a late fee once, but ONLY once.
If you are so short on time that you cannot adequately collect rent or late fees, then consider hiring a reputable property manager to do this for you.
5. Offer Rewards to Responsible Tenants
A critical part of managing a rental property is holding on to good tenants. Sometimes landlords can be so focused on preventing unwanted situations that they overlook the renters who make their job worthwhile.
If you have a tenant that always pays rent on time, abides by your rules and takes good care of your property, show them how much you appreciate them with an free cleaning or air-conditioning service once a year
A perfect opportunity to show your appreciation is after your tenants have paid a year of consecutive, timely rent payments. A rewards could also provide a wavering tenant with the motivation needed to renew their lease.
To be a good landlord, you have no choice but to keep your tenant satisfied while they’re under your care. To help you with that, we collected some tips on how you can become a successful landlord.
1) Be professional
When communicating with clients, whether by emails or text messages, don’t ever use slang! You’re running a business, so be professional!
2) Be reachable
As a landlord, you should make yourself available for your tenant, offer multiple contacts such as phone numbers or email address. Make them think that you are easily reachable especially during emergencies.
3) Be Smart About Rent Collection
Are you still collecting rent by showing up at tenant’s door? If yes, then you need to stop doing that. Use a secured online banking to collect the rent, make your tenants feel secured.
4) Be Organized
Organized all the relevant documents in your cabinet, make sure to keep it clean and tidy. You might think that being organized is not important, in reality, it is very important. Try to organize your office now, then you will know what I’m talking about.
So, have you found out whether you’re a successful landlord or not? If yes, then a big congratulation to you! If not, then try to improve the situation. BUT ACTUALLY, we already have one solution for you, yes just one! And it can solve the problems above.