The most important thing you can do to collect rent effectively is get great tenants into your rental property. That’s a simple answer to the rent collection question, but it’s really the most important thing you can do. Check out our videos on what makes a good tenant and how to find that tenant. Once you have that great tenant in place, there are four strategies we would recommend.
Set Up Consistent Payment Rules
We set up rules and consequences for rent payments with all our tenants from day one. In our office, that means tenants are expected to pay on or before the first of the month. After the third of the month, there’s a late fee. We make that late fee painful, and we consistently follow the practice. There are no exceptions.
Use Technology to Collect Rent
Another thing we do that has helped with rent collection is to use technology. We have some great old school tenants who prefer to pay the old fashioned way, but 96 percent of our current tenants pay rent electronically. They can go on our website, which is easy, or we give them a pay slip that has a bar code on it. They can take that pay slip to a 7-11 store, and it gets scanned. The tenant can give the cashier the payment and it’s recorded with us within 30 minutes. Our goal is to make rent payments as easy and efficient as possible for our tenants.
Put the Golden Rule to Work
Use the golden rule when you’re collecting rent from tenants, which is: Treat people the way you want to be treated. This will pay you dividends in the long run.
Use a Professional Property Manager
Finally, use professional Escondido property management to handle the rent collection for you. It gives us the opportunity to leverage what you say. We can tell tenants that it’s necessary to follow all of the owner’s rules, and we keep the process very matter of fact. The property manager can’t change it, the tenant can’t change it, and everything stays consistent. This really works.
If you have any questions about rent collection, please contact us at Francis Taylor Property Management. We’d be happy to share more information.