Last year, it was estimated that about 15% of American renters were late on at least one payment. While this often reflects the hardship that tenants are having with increasing prices, it can also indicate an issue with rent collection.
Being a landlord comes with many challenges, from marketing your property to staying on top of maintenance. If you're also struggling with rent collection, you're in the right place.
We're here to discuss some of the tools and resources landlords can use to improve rent collection. Making it easier for you and your tenants will yield positive results.
Read on to learn how to improve rent payments and boost your rental income.
Use Clear Language
The first step is to make sure that tenants understand your expectations. In your lease, you should clearly state the rent and the due date. It is often a good incentive to add an additional grace period of three to five days, allowing tenants some wiggle room to pay rent without penalties.
That said, you should also include clear language about late fees. In the state of Florida, late fees can amount to $20 or 20% of the rent, whichever is more.
Implement Online Rent Collection
In our digital world, it's important to adapt to tenant needs and expectations. In the past, rent was often collected in the form of checks that were dropped off or sent by mail. Now, some tenants may not even have a checkbook on hand.
The best choice for both you and your tenants is to use an online portal that tenants can log into. These portals make it easy to deposit money in a variety of ways, including virtual checks, direct bank deposits, and card payments. Plus, tenants can schedule automatic payments to ensure that they never miss a rent payment.
Outsource Property Management
Even with an online portal, some tenants may still miss the mark. As a real estate investor, you may not have anticipated chasing down rent payments as part of your job. However, this can become a reality for many rental property owners who will otherwise lost out on rental income.
If keeping up with tenant relations, communication, and rent collection doesn't suit your schedule, it's time to outsource your property management. Our property managers can handle individual tasks like rent collection or offer a full suite of services that turn property ownership into a source of passive income.
Call PMI for Orange Park Property Management
If you're struggling to stay on top of rent collection or receiving an influx of late payments, your real estate portfolio may start to slip. by updating your rent collection options and clarifying your expectations in your lease, you can set yourself and your tenants up for sucess.
PMI Davis Realty is here to make sure that your investments yield a strong ROI and your tenants are satisfied with their rental experience. Our property management services are customizable to ensure that you get the support you need. Contact us to learn more today.