One of the biggest causes of landlord headaches is unpaid or delayed rent. Because this affects cash flow, the business could face problems in other aspects such as repair and maintenance, a significant piece of the management budget. Given this, an efficient payment system should be in place to hold tenants accountable and encourage them to pay on time.
There are techniques that property management companies in Long Beach, CA recommend to help you collect payment properly.
Automatic Payment System
Employing a system for automatic rent payments will avoid human errors, such as tenants forgetting to settle their dues. An auto-pay or auto-deduct assures you that payment collection is accomplished on time. You can set this up through different platforms, including automated-clearing-house debit, online bill pay, and post-dated checks.
This system doesn’t only assure you of automatic payment, but it also implements a “no cash” policy, which greatly streamlines record keeping and frees you of hazards such as losing or misplacing cash, not to mention convoluted paper trails.
Efficient Screening Process
The initial way to avoid payment problems is to find tenants who are responsible in fulfilling their obligations. You can achieve this by establishing a thorough screening process. Set criteria for the kind of tenants you prefer. For instance, invoke income requirements for potential tenants to meet and check their credit history to sort out those with bad debt from the ones with good financial records.
Firm Rent Collection Policy
Another means to encourage tenants to pay on time is enforcement of a firm collection policy. Tenants should be aware of the exact amount they must pay each month, where the payment must be made, and the consequences should checks bounce or should they otherwise fail to meet their rent’s due date. You must follow the policy strictly for all tenants; as much as possible, no exceptions should be made.
Applying these strategies will definitely improve your payment collection. While collection can be difficult to accomplish and monitor, there are experts in property management in Torrance, CA who can help you out. They offer rent collection systems that can perpetuate your cash flow. If you’re experiencing trouble with collecting payments, call a property management company immediately.
7 Tips for Collecting Rent and Getting Paid On Time, landlordology.com
Rent Collection Tips And Strategies, biggerpockets.com