Rent collection is one of the many tasks for which rental owners seek help from property management companies. Rightly so, as this is a core function that requires not just efficiency, but also an ability to connect to people, and implement rules at the same time. Below are the steps and strategies for collecting rent payments with which a property manager can also offer assistance:
- Give a clear expectation of the rent amount, coverage, and schedule to new renters in the lease – Your new renter must have a clear awareness of what the monthly rent will cover. The lease should provide detailed information whether rent includes utilities, community fees, and the like. Renters should also initial a page describing the monthly collection schedule to confirm that they know the expected payment dates.
- Set up an automated electronic reminder system – You can work with property management companies to find the correct system for your property. You should send notifications more than once. The first one can remind residents of the payment schedule, and a follow up can remind them the week payment is due, for instance. If you have incentives for early payers, include this in the notification.
- Reiterate penalties for late payments – Your renters also deserve to know if they will incur late fees, as well as the amount of those fees, if they pay their monthly rent past the due date. You can provide a grace period, but give clear instructions on the timeframe.
