The Best Way to Collect Rent from Tenants

What I have found to be the  best way to collect rent from tenants is to have a billing system in place that allows you to automatically send the tenants a bill each month with an addressed return envelope.  I do this much like the mortgage company does in order to remind the tenants how they are to pay the rent and that is due on the 1st of the month.  It is a little more work but it pays off in major dividends once your tenants learn the guide lines.

They key is to send the notice with the rent bill inside toward the end of the month and use a smaller size envelope for the check to be mailed in from the tenant.  This way if you are collecting rent on 20 units you will always know a rental check because it comes in a smaller size envelope.  It is amazing how closing you will look for that particular envelope when you are waiting for rent to hit the mail box.

This method also tends to eliminate many of the excuses used by tenants because it clearly shows them you are serious about rent collection.  It is imperative to get tenants in the mind set that there are serious consequences for not paying the rent or for paying the rent late.  If you do not make this issue clear the first month of occupancy you will for ever be dealing with late rent collection. 

If a tenant is late on the rent your only option really is eviction.  There are some exceptions to this rule but most of the time when tenants pay the rent late it is a sign of more serious issues down the line.  Make it clear up front that rent has to be paid on time, no exceptions, send out reminder bills each month and the follow through on your threats to evict.

Follow those rules and you will be well on your way to being a good landlord. 

1 comment:

  1. Great Post! It's very nice to read this info from someone that actually knows what they are talking about. non performing notes for sale

    ReplyDelete