In order to run your rental property business successfully and maintain a regular cash flow, you need to ensure that your tenants pay the rent on time. Sometimes certain tenants either delay the rent or refuse to pay it all together.
Here are some effective tips that can help you collect regular and timely rent from your tenants.
Select Your Tenants Carefully
- To ensure that your tenant pays the rent on time, you must ensure that you screen the background of the potential tenants and check their credit ratings properly.
- Follow strict criteria while choosing the tenants and make sure you hold the same criteria for all tenants.
- Besides having a good history of paying rent on time, the tenant that you select must have a regular income, which is at least three times the rent amount or more.
- Get detailed, recent consumer credit report, which has details of past debts and eviction judgments.
- Check references and call the previous landlords to ask about their experiences with the tenant.
To ensure that you get the payment on a fixed date, ask your tenant to set up the payment as a recurring bill with their bank. The bank will automatically transfer the funds from their account to your account on the stipulated date.
Get Post-dated checks
One of the best ways to ensure that you get the rent on time is to collect post-dated checks for twelve months in advance. This way, you can simply deposit the check every month and get your rent payment on time.
Implement A No Cash Policy
Avoid taking rent in the form of cash and get it deposited in your bank account. Bank transaction is a secure way and leaves a trail about the payments. You can easily avoid any conflicts regarding rent payment by taking a check or bank deposit. You can also add a clause about no cash payment in your agreement or furnish a notice clearly stating that you do not receive cash for rental of your property.
Strictly Enforce Your Rent Collection Policy
For ensuring regular and timely payment, keep your rent collection policies consistent and firm. Clearly intimate the policies to the tenants and address all the payment issues such as acceptable payment modes, date when the rent is due, grace periods, exact amount to be paid every month, where to make payments, and the consequences of defaults and bounced checks.
Do not allow the tenants to take advantage of your generosity and impose a reasonable fine for late payments. Being professional is the key to collecting your rent on time.
For more tips, contact us at Lone Star Realty & Property Managment, Inc. We are located at 1020 W Jasper Dr, Killeen, TX 76542. you can also call us at (254) 699-7003.