Getting late payment is one of the most common challenges a landlord deal with every month. A landlord must have a strong heart when it comes to confronting tenants with delayed or no payments. But this is not always the case especially when the tenants appear to have a reasonable excuse for being late and this can have a negative impact on your rental business. Therefore, a successful landlord should learn how to make tenants pay in time. This article will show you effective ways on how to make your tenants pay their rent on time.
Communication Is The Key
Communicate with your tenants before they move in. They should have a clear understanding of the lease agreement, especially when it comes to their rental obligations such as the price of rent, the due dates, and consequences on delayed payments. Explaining how they can pay and where they can pay is also a good thing to discuss with them. After making sure that they understand the agreement (and if they do not have any more questions), you have to let them sign the agreement. This will serve as a strong proof that you had an agreement since the beginning, which you can also use in court if there will be a case of a non-paying tenant.
Impose Penalty On Late Payments
For some tenants, the price of the rent itself is already a monthly challenge. Giving grace period will surely be appreciated by your tenants but it should be clearly stated in your lease agreement. Since you showed consideration, it will not be bad if you will impose a fine for delayed payments. In fact, it could serve as a good reminder. Who would be happy to have an additional payment each month? So, they will be encouraged to give their payment on time. Just make sure that the implemented fine will still be according to the law.
Give Discount For Early Payers
The word DISCOUNT is music to the ears. Another way to prevent late payment is to give a discount to tenants who pay a day earlier than scheduled. Through this, you can also show that their effort of paying their rent on time is highly appreciated. Just be mindful of how much discount you will give to make sure that your expected income will not be affected.
You Can Report Late Payments
Yes, you can report late rent payments to the offices in charge of calculating an individual’s credit score. It is important to tell your tenants before they move in that you are going to report late rent payments to the credit bureaus. Of course, no one likes to mess with their credit score since it will follow you forever and it will play a huge role in many major financial situations throughout your life. Therefore, this is a great strategy to make your tenants pay on time.
Being a landlord is not an easy job, especially when it comes to collecting payments and dealing with difficult tenants. If the strategies above still fail, contact Broomfield Property Management. They have the information and experience to assist you in making rent collection as smooth as possible.