Are you tired of chasing down the rent from your tenants? Or,
Do you think the arguments are leading to strained relationships with your tenants?
Well, if any of the above is your case, you need a proper resolution to the issue.
Late payments can lead to serious consequences for both tenants and landlords. But before things get worse you can always work on them.
Hence, we are up with another article today to help you deal with the late rent payments. After all, nothing can beat a fair, respectful, and legally sound approach. So, let’s walk you through different steps to handle late rent collection easily.
Preventing Late Rent Payments
Even the most responsible tenant cannot escape from the clutches of late payments sometimes. There can be genuine reasons beyond this of course but, if it is occurring frequently, then that’s a matter of concern. Here are some ways to prevent the late payments from the tenants:
This is one crucial aspect and it cannot be ignored in any case. Get a thorough screening of your tenants before getting involved with them. Check their past records, get in touch with their previous landlords, and their employment history, and call all the references to verify their employment.
Ensure that you sign with a responsible party who will not give you a headache anytime in the future.
Offering Different Online Rent Collection Modes
Don’t let them escape or make excuses merely because one mode is not working or they cannot avail of it. Be flexible and suggest different modes of payment to your tenants. In this digital age, people prefer online payments more. But of course, this is again your will to set the mode of payment according to your preferences. You can also negotiate a payment plan with your tenants if they are experiencing any financial difficulties.
Lastly, you can give the option of Cash, digital payment, automated rent collection software, cheque, ACH withdrawals, etc.
Pro Tip: Make sure you mention all the possible types of payment in the agreement or document it separately.
Lease Agreement Policies
Take your time to frame the most convenient and practical policies. Now, you can alter them with changing times but be clear in the starting itself about the said rules and regulations. Get the signature of your tenants with their full name and permanent address.
Furthermore, make sure you mention the exact rent with the due date, grace period, and fine thereafter clearly enough to avoid any ruckus in the future. Get a copy of the same for your tenant to avoid any expected confusion. Additionally, have a detailed record of the rent paid, late fees, or any amount due.
Henceforth, for your own benefit, document every minute detail for the good of both the parties involved. Trust your paper more than your brain.
Maintaining an Open Conversation
Straight conversations will never lead to misinterpretations. Show a balanced empathetic and professional approach. Reach out to the tenant in case of a late payment. Inquire about the reason and allow them to explain. Usually, these types of conversations help in establishing trust and understanding.
You can resort to late rent notice first before proceeding with anything legal or eviction. But only if your multiple calls and notices have been ignored, you must take strict steps or actions for the same.
But before resorting to eviction or any other legal process, ensure that you have applied every fair tactic and approach to get the rent.
Dealing with Late Rent Collection
Occasional oversight will do no harm. But, if things are getting out of hand, follow the below-given tips to deal with the late payment process:
Sending Monthly Reminders
Now this can be in the form of a formal email, direct phone call, DM, or even reminder from the automated rent collection software. While emailing and sending reminders from the rent collection software is gentle, directly calling or DMing them unnecessarily will cause havoc and a sort of invasion.
Enlightening Tip: Save all the reminders you send your tenants and get a copy of them in case you have to present them while pursuing legal charges in court.
Grace Period and Charging Late Fees
In case the tenants encounter any unexpected delays, grace periods can come to the rescue. But, ensure that you discuss this time-span in writing with the tenant. This period generally consists of a few days from the due date to offer some flexibility.
Furthermore, comply with the local and state laws while setting the late fees. Keep it reasonable to avoid any disputes or legal concerns.
Improving the Tenant Screening Process
Check for any loopholes or lackings. You may have missed out on something which leads you to this scenario. Make sure you are satisfied enough before formally giving them the keys to your rented space.
Frankly speaking, the rent collection process can take a heavy toll on your mental as well as physical health and can leave you emotionally taxed. But, you must remain calm, professional, and legal throughout the process and get professional advice from the lawyers or any housing counselor if necessary.