If you own a rental property, you likely know just how difficult it can be to find good tenants who pay rent on time and keep the place clean and free from damages. Property rentals can end up costing you more than what it is worth. However, that is not the case if you take the time to find the right tenants, reinforce rules and collect rent on time. Collecting rent on time can be challenging, because many people don't want to be the one to start a confrontation that is usually involved when having to talk to the tenants about paying the money that is owed. Here are three tips to help you collect rent on time:
Have a Late Fee:
Many of those who rent out property that they own make the mistake of not putting a late fee for rent in the contract. Putting in a late fee will guarantee that you are much more likely to collect rent on time. After all, paying rent is already difficult enough for many tenants, so on top of that they don't want to have to be faced with a late fee, as well. The amount that you can charge on a late fee all depends on the law issued in your state. It is suggested that you charge at least the minimum that you are legally allowed to. However, if you fear that the legal minimum is too low to prevent the bad habit of paying rent late, then you can raise it to the maximum that is allowed.
One problem some property owners have is that they aren't consistent with their tenants when it comes to paying rent on time. One month you may let it go while other times you kindly suggest that they pay rent on time the next month. This should be avoided. You must be consistent at all times, even if this means that you have to play the role of the "villain." Stick to the policy and it will save you money and a whole lot of headaches.
When it comes to having a relationship with your tenants, it should always be professional. Becoming friends is never a good idea, since it can lead to them taking advantage of you. However, you also don't want to become threatening when they aren't paying their rent on time. Threatening behavior can lead to worse behavior and they can even walk out on renting from you, which means that you can be out of tenants on the place for a couple of months, at least. Instead be professional by following the policy written on the rental agreement.
By following these three tips, you can save yourself money and time spent with renting out to bad tenants. By following through with your policy, you won't have to stress about receiving rent on time and can be sure that you become successful as the manager of a property rental like those of ABA Rental Properties Inc.