Over one-third of all residents in the United States are renting their homes rather than buying, and that is a lot of rent collection.
This is also a lot of opportunity for mistakes to occur in the collection process, and the possibility of more bureaucracy than is necessary. So, do you know what the different rent collection myths and mistakes are that new landlords fall victim to in Salt Lake City?
The following rent collection guide should help you understand where possible pitfalls are and how to avoid them. So, read on and get started on the right foot.
Evicting Without Investigation
Some stricter areas of the Internet give out rent collection tips such as "Evict as soon as they fail to pay." This is not helpful for you, much less any long-term residents that you might have. They might have valid reasons for not paying that are covered by legal protections.
At the very least, you should communicate with such a tenant. Ensure that you understand their circumstances and know both your rights and theirs in this matter. It may only be a one-off issue, after all, and may never occur again.
Forcing People Out
Some landlords try to push out tenants who do not pay. Examples of ways that they do this include trying to arrange repairs or maintenance where the property does not need it. Other things that people sometimes do include harassing the tenant with letters or inspections.
We cannot stress enough that you should not do this. Not only can you harm your reputation moving forward, but it may be illegal. If you need help in evicting a tenant, we would recommend that you speak to a property manager who might have a better idea of your legal options.
You and the tenant need to understand the rental charges, how often you need to receive them, and how the tenant should transfer them.
If you do not collect this, or allow a tenant to do this without a warning, they might continue to not pay in the future.
Refusing to Charge Fees
If you charge late fees, make sure to assign them.
These things encourage tenants to pay on time, and people may see that refusal to charge them in the past is precedence that you will not do so in the future.
One of the most important rent collection tips relates to bookkeeping. You need to ensure that you keep good records of all transactions that occur between yourself and the tenant.
Not only will this help you know if you have received rent, but if you must go to court about rent in the future, these records will act as good evidence.
Let Us Handle Rent Collection
Now you understand more about avoiding rent collection problems. As such, you might want to work with someone with the experience to avoid them in the future.
Our specialists are ready to talk to you about how we handle properties in Salt Lake City and what we can do for you long-term. A rent collection service is only one aspect of what we do for new landlords.
So, pick up the phone and give us a call to learn more about our property management expertise.