More than 754,000 Colorado residents rent, making it easy for landlords to keep their units occupied.
But if you're a landlord, you'll know that some tenants refuse to pay their rent. Others might pay late. Keeping the rent money coming in is necessary for your cash flow and success.
Are you struggling with rent collection? If so, you need a solution.
Here are some top strategies to implement that ensure timely and efficient payments.
Start With High-Quality Tenants
Whether you own residential or commercial property, you need good tenants. A good tenant has several unique qualities, including good credit.
Focusing on finding good tenants alleviates many landlord problems. It also reduces the potential of experiencing tenant problems.
For example, good tenants have good credit because they value it. Therefore, they pay rent on time to keep it good.
Improve your tenant screening process to find better tenants. A thorough screening process eliminates tenants you wouldn't want. It also helps you find tenants with the qualities you're looking for in renters.
Outsourcing this duty is quite common with rental property owners. It passes the duty to a company with experience handling this task.
The bottom line is that good tenants are more likely to pay their rent on time every month.
Provide Several Options
Paying rent shouldn't be complicated for your tenants. Simplify the process by offering several rent payment options. Here are some ideas:
Rent Collection Box
Provide a rent collection box in apartment complexes or your office. Ensure it's available 24/7 to make it convenient for all tenants.
Offering online rent payments is almost a necessity today. Most people handle their finances online. By providing a tenant portal, your tenants can pay their rent anytime and from anywhere.
Enforce Late Payment Penalties
Tenants may decide to pay their rent late if you set a standard of not enforcing late fees. However, when they know you'll charge a fee, they might aim to avoid it.
Create a late payment system and enforce it with every tenant. After paying it once, a tenant will likely pay on time next time.
Make the Process Clear
Finally, make the rent collection process clear. Create a document that states:
- Rental amount
- Due Date
- Methods for paying the rent
- Late fee amount and procedures
Hand out a form to each tenant. Place the form on your portal if you have one. Informed tenants may be more inclined to follow the system if they know how it works.
Property management companies can assist with helping you create a system. They can also assist with enforcing late payments.
Need Help With Rent Collection?
Rent collection is one of the most important aspects of a rental property business. Luckily, there's no reason to struggle with this issue. Instead, seek help.
PMI Mile High can help. We pride ourselves in exceptional customer service in Westminster, CO. We offer all property management services and would love to hear from you.
Reach out to learn more about how we can help.