What to Do if Your Resident is Not Paying Rent in Whittier
Collecting rent on time is an important part of your investment strategy. You need to rely on the timely payment of rent; that’s why you screen residents well and set a rental due date.
If you’re having trouble collecting rent when it’s due, there are a few things you can put into place to ensure you are more likely to get that rent paid on time.
Establish a Rental Collection Policy
Your lease should include a detailed and clear rent collection policy. This policy should reflect how much rent is due, when it is due, and how it should be paid. The policy must also explain any consequences to late rental payments such as late fees and potential eviction. When you have this policy in writing and in your lease, there can be no confusion. The resident cannot claim that he or she did not know when rent was due.
It’s also a good idea to discuss your expectations verbally. When you meet to sign the lease and hand over the keys, reiterate what you need in terms of on-time rental payments. A good resident will understand the importance of this responsibility and respond accordingly.
Enforce Your Rental Collection Policy
There’s no point in having a rental collection policy if you don’t enforce it.
When rent is late, make sure you apply the consequences. It’s important to be consistent, otherwise the residents won’t know what to expect and they’ll do what they can to get away with late payments. Charge the late fee that’s listed in your lease agreement and take any additional steps, including the service of a Three Day Notice to Pay or Quit.
Provide Multiple Ways to Pay
Residents appreciate flexibility, and when you allow them to pay rent in a way that’s most convenient for them, you increase the chances that you’ll receive the payment when it’s due. In today’s online world, residents especially enjoy paying rent electronically. Most property management companies have online resident portals, where they can securely and efficiently pay rent through their bank account or even a credit card. It’s easy for them, and they can even set up reminders and schedule recurring payments.
As a landlord, you may not have access to such technology. However, you can still offer residents convenient payment options. There are apps and payment platforms that will facilitate the transfer of funds from their account to yours. Some residents might prefer paying by check. Offer as many payment options as you can.
Provide Open Resident Communication
Keeping the lines of communication open will also help you know what to expect. If a resident is going to be a few days late with rent one month, you want them to be comfortable letting you know that in advance. It’s better than chasing down the payment and wondering what has gone wrong. Let your residents know that you want to hear from them, especially if they’re going to have trouble paying rent on the date it’s due.
These are just a few tips that will help you collect rent efficiently and on time. If you’d like to hear more about how we manage this part of the property management process, please contact us at LS Property Management.