To your tenants, paying rent on time may not be a big deal, but your cash flow is a priority to you.
If you think paying rent late is going to become a habit for your tenant, there are ways to get them to pay rent on time.
Be Communicative and Clear
Set expectations early and reinforce them during the application process. Make sure to mention repercussions of violating the rental due date, both in written and verbal form. One way of doing this is to divide the agreement into multiple sections, verbally explain step by step, and have the tenants sign or initial every page or so. Also, confirm that the due date does not conflict with his/her paycheck timing. Keep communicating with your tenants on a regular basis for any changes that might affect their timely payments.
Late Fee
It is important to check your State statutes for a maximum late fee, before including it in the lease agreement. A late fee can be a strong motivator to keep a tenant current on their rent. Always use a lease that is compliant with your market.
If you decide to waive a late fee on occasion, make sure you’re clear that it will not become a habit.
Consistency
It is crucial to treat all of your tenants equally and enforce your rules consistently. Be consistent and follow your own lease agreements. Revise the lease yearly if necessary. When they have passed your grace period, make sure to be consistent with reminders and Pay-or-Quit notices.
Professionalism
- Keep a professional business tone with tenants at all times.
- Approach them with solutions, not emotions.
- Do not threaten them, which will be beneficial to your court case if you end up in one.
- If you need to remind them of their late rent, contact them in person, and leave them written notices.
- Make copies of all correspondence and keep a journal of conversations as well.
The post How to Get Your Tenants to Pay Rent on Time appeared first on Rent Recovery Service.
