Collecting the monthly rentals on time is the biggest factor in making the rentals gainful, however, the process is not always as simple as you may assume. According to CNBC, some 18% of renters, around 10 million, lag in their monthly rentals, owing their landlords $57.3 billion. Some typical ways of tackling rent payment issues in addition to specifying the rent amount and the due dates for making the rent payment in the rental agreements:
Conduct a Stringent Tenant Screening Process
When looking for prospective tenants, you should look carefully at the screening report. The first thing to know is whether the tenant has ever been evicted due to non-payment of rent. Also, go through their credit reports to find out if they have any issues regarding their payment behavior that could spell trouble for you in the future. Make it a point to interview applicants personally to know their genuineness and attitude.
Enforce the Payment Rules Evenly
You can expect your tenants of properties in Eugene to occasionally make a late payment or miss one due to unavoidable circumstances. Even though you would like to be compassionate, you should stick by the lease agreement. You should specify the due date of the rental every month, the number of days of grace allowed, and the late fine for paying after the due date. Make it clear to all tenants that you will follow the rules strictly and not entertain requests to bend them.
Impose Fees for Late Payment
You should not hesitate to charge late fees if tenants miss their due dates. However, you should check your local landlord-tenant laws to see what they say regarding how much you can charge. However, you should verify if your state allows tenants a grace period, whether you can charge late fees without mentioning it in the lease, the time you can start charging the late fees, and whether it gels well with your state’s rent control laws.
Issuing “Pay or Quit” Notice
In most states, the laws require property owners to send tenants a “pay or quit” notification if the tenant fails to pay rent. The notice needs to contain details of the number of days within which, the tenant needs to pay or vacate the apartment. If the tenant fails to do either, you can terminate the lease formally and begin the process of eviction. Keep in mind that you cannot do anything to force your tenant out of the premises, like changing the locks, blocking the entrance, shutting off utilities, etc., as you will be liable to pay steep penalties.
To ensure you don’t have hassles over rent collection, you should ideally use property management software that makes rent collection, payment, and reporting easy. You can report rental payments to the credit bureaus, so all renters have the incentive to pay on time to improve their credit scores. Use the app to collect monthly rent using credit/debit cards, ACH payments, bank transfers, etc., so you don’t need to worry about physical banking and bounced checks. You can also send automated rent reminders and track the payments.