Rent Collection Mistakes to Avoid

» Posted by on Jul 2, 2020 in Property Services | 0 comments

As a rental property owner, perhaps one of the most gratifying responsibilities is rent collection. It is an easy process. All you’ve got to do is to collect rent from the tenants at whatever date is specified in the rental agreement.

However, this process is also a point of weakness for your property. It can endanger the entire process if you improperly collect payment or if you don’t have a solid procedure for collecting payment.

Most landlords search for “property managers near me” to do the job for them. However, if you want to collect rent on your own, here are a couple of mistakes you should avoid:

Not Tracking Payment History

You’ve got to ensure you have a reliable and stable tracking system to track the rent payments of your tenants. This will help you avoid charging fees incorrectly. This will also help you recognize tenants who are dependable. Aside from that, if you need to take action against an irresponsible tenant, these documents will be crucial. For instance, you will require reasonable evidence that the tenant hasn’t been paying rent on time if you are evicting one.

Never Issuing Late Fees

Almost every area enables you to issue late fees for late payments. Of course, you’ve got to collect them as well. There are a couple of reasons why late fees exist. They are a method to compensate you for your lost income and extra time. They are a financial reminder that there are consequences to late payments. They are a practical approach to stop tenants from missing payments.

Accepting Partial Payments

On almost all occasions, it isn’t wise to accept partial rent payments. You might think that it is better to get $250 rather than nothing for the month. However, you will be setting a bad example. You’ve got to ensure there is a fee, a penalty, or other measures to stop this event from happening again if you do accept a partial payment.

Enforcing the Rules Irregularly

It is not an ideal move to irregularly enforce the rules. For instance, you will be setting a bad example if you accept a late rent payment and fail to issue a late fee, then issue the late fee on the next late rent payment. This will leave your tenant confused. It is a lot better to be steady with your rules. This is particularly true if you are working with a lot of various tenants. You can be a subject of a lawsuit if you are seen as offering special treatment to a particular tenant.

Never Enforcing the Rules

There are reasons why rules exist. You’ve got to ensure you point out the disagreement if a tenant violates the rules. Let your tenant know if he/she is late with the payment. Then, issue him/her a late fee in accordance with your rules. Tenants can take that as a sign that your rules do not matter if you enable tenants to violate them or if you do not pay attention to your rules at all.

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