At some point in your Fairfax real estate journey, you will have compiled a spreadsheet listing your investments, upfront and ongoing expenses, and rental income.
This is a vital part of turning real estate into a profit. But imagine all that rental income disappearing from the spreadsheet. Now, your financial picture will look very different.
Here's how to avoid that situation with our top landlord strategies for getting rent collection right.
Switch to an Online Portal
Modern tenant portals have payment systems integrated.
That is more convenient for you and your tenant because it automates the process. Tenants can head to the portal to set up payments and check previous payments, and the system can also send reminders.
Plus, you can automate late payment fines, cutting down on admin while ensuring you still have enforcement methods in place.
Provide More Flexible Payment Plans
It's worth speaking to your tenant about payment options. Offering flexibility can reduce the stress and pressure of making monthly payments while avoiding your tenant's default.
For example, some tenants may get paid every two weeks and prefer to pay their rent over the same period, as it's easier to manage their budget.
Provide Some Incentives
Rewarding tenants for on-time payments can help foster a better relationship with them and reduce delays.
There are many ways you can do this, but ensure it's outlined in the lease agreement to avoid confusion or misunderstanding. For example, you could offer a discount on next month's rent.
Improve Your Communication
Sometimes, late payments happen because of a lack of communication between the landlord and tenant.
There are a few ways you can mitigate this worry. First, ensure that your lease agreement is explicit and that the tenant has read the payment rules before securing your property.
Second, you should send monthly reminders before the due date. That way, you can avoid having to chase tenants who simply forgot.
Move to Automated Payments
You can specify bank transfers for your rent payments. This method requires the tenant to set up a monthly transfer, but everything happens automatically once that's in place.
The tenant can forget the monthly due dates, and you can track the payments in your bank account, giving you a more efficient rent collection process.
Improve Your Tenant Screening Process
Reliable tenants will pay without you having to chase them every month. Implementing a robust tenant screening process can make it easier to find dependable tenants.
Check their tenant history by obtaining references from previous landlords and ensure they have a good credit score.
Streamlining Your Rent Collection
Be proactive about rent collection and use some of these strategies for your rental. It will make your rent payments more reliable and save you the worry of chasing tenants for money.
You can remove all the hassle of your Fairfax rental payments using our trusted property management team instead.
At PMI of Fairfax, we take pride in delivering exceptional customer service and a profit-focused approach to all our real estate customers. Discover how we can help you here.
