Accounting can be challenging, especially to individuals without a background in business management. Now, throw late rent payments into the mix, and most of the landlords and property managers will go berserk. If your tenants tend to make late payments for the rent, it can be challenging to pay vendors or even clear your loans on time if there are any. Also, you might need to postpone repairs and other crucial projects that add value to your property. Once tenants start making late payments, it becomes a vicious cycle that is hard to break.
Luckily, you can break the cycle and start collecting payments for your property on time. Well, no one said that it would be easy, but the following tips can help to make it easy for you.
Hire a Property Manager
This is a common trick that has worked for many landlords. Seeking the services of a residential property management East Bay saves you the time and energy you would have used to track down late payments. Hiring a reputable residential property management East Bay can also help you to put in place a stronger payment system that ensures consistency in rent payments in the future.
Adjust the Payment Dates
Another trick that might work for your case is adjusting the payment due date. For instance, if you pay the mortgage on your rental property on the 10th of every month, you may consider changing the rent’s payment due date to a few days before the mortgage is due. It will give you a room to breathe in case rent payments are late by a day or two.
Create a Reminder System
Put in place a payment reminder system that alerts your residents of upcoming payments. You can create a reminder system that sends alerts, say three days before the due date, on the due date, and a day after the due date to the residents telling them that their rent payment is late.
Implement Penalties
Many lease agreements have a clause indicating that late payments will attract a penalty or late fees. The problem is most of the landlords are lenient and don’t enforce such penalties. Initially, penalties may come as a jolt to some tenants, but it will work out for you in the long run.
For more information visit us at Vision Property Management.
