There’s a growing demand for apartment rentals in San Antonio!
These are definitely brilliant times for landlords! With the increase in demand for apartments, rents are also projected to rise for a fifth straight year. Steady job growth is one of the many reasons why it has become possible for people to rent their own apartments.
With this, you need a streamlined process in collecting rent from your tenants. When they fall behind on their rent, it will become much more challenging to pay rent on time the following months.
What are the best practices of an effective property management company?
Make it auto debit. Have you heard of ACH? It means automated clearing house and it can make the lives of all property managers a lot easier. ACH means your tenants will need to sign a document authorizing you to withdraw a set amount of money on a monthly basis. The possible drawback is you still need to make sure your tenants have enough funds, otherwise, the attempts to withdraw will bounce and you won’t get paid. If you’re confident of your tenants’ financial standing, this is definitely the fastest way to collect rent.
Provide your online bill payment option. You can choose between ACH or online bill payment. Your tenants will need to register your name to their bank and make it a recurring payment.
Offer discounts for on-time payers. Instead of imposing a fee for late payments, promote that you’re giving them a discounted rate when they pay early or on time. You encourage and set the mood of the behavior you want to see in them and you can avoid tenants who are paying extremely late because they have already paid the late fee.
Opt for mail or collect post-dated checks. They may send their rental payments by mail although you may want to be clear of the mailing timeframe to still avoid late fees. There are landlords who require 12 post dated checks for a year long lease. Just be mindful that it is illegal to encash any check before the date mark.
Maintain a healthy professional relationship with your tenants. Communication is the key to making sure that your tenants know their due date, and if they’re allowed of a grace period before the late fee kicks in. Ask them if the set date will work for them. Ask what will work for them better as far as paying their rent is concerned, then meet halfway. It’s important to ask how they’re doing once in awhile.
What do you do if your tenant’s rent is late?
Even when the situation becomes frustrating, it is expensive to sort this out with a lawyer, both for you and the unlucky tenant. You may:
Review your late payment notice before serving it to your tenants. It’s a piece of document which includes the fees that they owe and this will remind them that it’s already past their due date.
Verify your lease contract and previous payment record. Sometimes, when we are so caught up in the moment of record-keeping, we may overlook details.
Don’t be embarrassed to call your tenants. To simply find out the reason behind their late payment.
The more official document than the late fee notice is “Pay or Quit Notice”. This is to remind tenants that you are seriously considering taking an action if the rent is still late on the date he or she promised to deliver.
San Antonio Property Management can help you!
San Antonio Property Management, a department of Real Estate Muses, is a guaranteed pro when it comes to managing your investments. We treat them with respect and take care of them like they are our own.
Call me, Scott Wiggans, at 210-201-6543 and I can help you, not only with questions regarding rental payments, but anything from building up your business to keeping it successful. You can never go wrong if you work with the only the best!