Are you thinking about buying a rental property in Salt Lake City?
While finding a tenant who's willing to pay your rent is a relief, you'll soon find that rent collection isn't as easy as you'd think! Unexpected financial emergencies could spring up for landlords.
As a result, you must find the most efficient ways to collect rent. This quick guide will show you the best ways to get tenant rent payments.
Here's what you should try:
1. Cash Payment
When you first find a tenant, you might want to ask for the deposit in cash. You can also ask for any advance payments, such as rent payments for the first month.
If they're able to pay in cash, this shows that they have some sort of financial stability. If you stipulate that you always wish to be paid in cash, then you'll weed out any tenants who don't have stable incomes.
2. Digital Rent Collection
The fastest way to collect rent is to use a payment processor. These are software programs where you can send an invoice to your tenants.
Your tenants can pay rent using their bank account information. Alternatively, they can also pay using their credit or debit card. Some software programs allow tenants to connect their bank accounts and they can pay using a mobile application.
The biggest advantage of these applications is that they'll help you keep track of your earnings. This makes it much easier when you have to pay your taxes.
Now let's look at how you can ensure your tenants will always pay on time.
3. Offer Incentives to Pay Early
Your tenants might have an unstable income, which can cause problems for regular rent payments. If this is the case, you might want to incentivize them to pay early.
For example, you can offer to provide free internet if they pay for two months of rent at a time. This simple incentive can lead tenants to pay early even when they're not required to do so.
4. Impose Late Fees
While you can offer a grace period, you also have to be firm if your tenants don't pay on time. While there are limits on late fees, you can still charge them if needed.
This lets tenants know that you are a serious landlord. They should understand that there are consequences for being negligent with monthly rent payments.
Write a clause in your rental agreement that makes it clear that you'll charge late fees. Once again, this will filter out any tenants who may potentially be negligent with payments.
Succeed With Rent Collection
You can consider cash payments to assess a tenant's financial stability. Digital rent collection is the best way to receive money and keep track of your finances. You can also hire a property manager to assist with rent collection, to ensure prompt tenant rent payments.
Wolfnest Property Management has helped landlords like you since 2012. Our team of professional property managers will help you get paid on time!
Contact us to learn more.
