If there is one problem every landlord and property manager face, it is how to get their tenants to pay their rent on time. Every landlord loves a tenant that pays rent on time. However, getting such tenants is not easy. In some cases, tenants may be affected by a situation that makes it hard for them to pay their rent as at when due.
As a landlord or property manager, it is your duty to ensure prompt rent payment. It is very vital to collect your rent payments on time each month to be able to cover the operating costs. Like we mentioned above, sometimes, tenants fail to pay their rent on time. When this happens, it may not be a great idea to take them to court right away for eviction. There are a number of other ways you can use to ensure quick payment of rent.
In this article, you will learn various ways you can use to ensure prompt payment of rent by your tenants.
Top Ways To Ensure Prompt Rent Payments
- Clear Communication
Before a tenant signs a lease, it is important he understands that you don’t jeopardize when it comes to paying rent on time. Make sure the tenant understands your rent policy and the consequences of not paying his rent on time. The tenant should signify that he is willing to abide by your rent policy. You should make it clear how much they are to pay each month, when to pay their rent, and how they can make the payment.
Clear communication with your tenants is very important if you want them to always pay their rent on time. You should ensure you provide every tenant with a copy of the signed lease.
- Let Your Know the Consequences of Not Paying Rent on Time
Talk to your tenants, you need to let them know the consequences of not paying their rent on time. When a tenant fails to pay his rent on time, you should make out time to have a talk with such a tenant. Discuss what is causing the delay with the tenant. Sometimes, it may be that the tenant forgot or he has other things he is dealing with. You can also check to know if changing the payment method or payment date can help him pay his rent on time in the future. You can check if setting up a direct debit or standing order will help reduce the chances of him forgetting to make a payment. Having a heart-to-heart talk with your defaulting tenant will help you come up with a solution that will favor everyone.
- Charge a Late Fee
In most cases, having a penalty such as a late fee can be the motivation your tenants need to pay their rent on time. Some landlords have a late fee policy. If a tenant fails to pay his rent on time, he is given some grace period. If he fails to meet up with his rent after the grace period, he must pay a late fee or be evicted from the property for breach of the lease agreement.
- Threaten To Report a Tenant To a Credit Check Bureau
You can get a tenant to pay his rent on time by letting him know you are going to report him to the Credit Check Bureau. This is another strong incentive for tenants to pay their rent on time. Most people want to keep their credit score as clean as possible. Late rent payment will definitely put a dent on their credit score. Tenants are awarded with a better score when they are paying their rent on time. Let the tenants know that you are reporting their rent payment status every month to credit check bureau. This could motivate them to pay their rent on time.
- Offer a Discount For Early Payment
You can decide to offer a discount for tenants who pay their rent on time. Offering a small discount will motivate tenants to pay their rent as early as possible in order to reduce the amount of money they will pay as a rent. The best way is to reward tenants that pay their monthly rent with Direct Debit or standing order. This allows you to get your rent automatically every month.
If all your efforts to get a tenant to pay his rent on time fail, you will have no other choice than to take him to court and start eviction procedure. However, avoid denying a tenant basic utilities like cutting off his water in order to motivate him to pay his rent. This could work against you in court. You can work with top property managers such as Los Angeles Property Management Group if you are looking for a way to get your tenants to pay their rents on time.