Many landlords find themselves constantly chasing down tenants for rent payments. The reactive approach to obtaining the payments is to implement collection tactics after the due date has past. That is generally only moderately successful. The easier and more effective approach is to be proactive…
In today’s economy tenants are frequently faced with the reality of limited funds and the decision on who gets paid. If you effectively motivate your tenants to pay you, you’ll be on the top of this list of who they pay each month.
- Let your tenants know that each time they pay their rent, you will report to the credit bureau how timely they paid. Knowing that their pay habits will either positively or negatively effect their credit rating can be a great motivator for on-time payments. Low risk tenants will want you to report their on-time rent payments as it will assist them when applying for new rental accommodations.
- At the time tenants move-in and each time a lease is renewed, reinforce your promise to provide a “certificate of satisfactory tenancy”. Many tenants don’t have a stellar credit history, but they are good tenants and pay rent on time. Tenants that always make rent payments a priority will have an opportunity to demonstrate their pay habits to future landlords through the verifiable certificate that you provide.
Too often rent payments are missed due to tenants saying there are unable to make it to the office to pay. By the time they do have the opportunity, their money has already been spent on other things leaving them with not enough money to pay you their rent.
- Eliminate the need for tenants to make manual payments. Using pre-authorized payments to automatically collect rent ensures payments are always made on the due date without any action required by the tenant.
- Using an automated online system to remind tenants when rent is due can be very effective. Most often tenants make their payment as soon as they get the reminder.
Do you need help with these solutions?
