April 09, 2015
The Surprising Truth About Faster Rent Collection
Having tenants who pay their rent on time is key to any successful property. However, from time to time, even good tenants with good jobs miss rent deadlines. In other cases, late payments are the result of lack of financial planning and organization.
Having more efficient communications, automated systems, and offering a variety of ways to conveniently pay before, or on, the due date will vastly improve on-time payments, and cash flow. Here are some best practices for ensuring your tenants pay their rent promptly.
Reminders for Busy People
Life can get busy and when working people have so many things competing for their attention, it’s common to overlook or procrastinate on chores like paying rent.
One way to help people to pay on time is to remind them of the upcoming deadline by sending monthly rental statements 10 days in advance. Using electronic statements saves costs and allows you to send them to an email address, or by text.
If your tenant is consistently missing deadlines, scheduling escalating reminders through the portal will you stay on top of your tenants’ bad habits and keep revenues flowing.
Set & Forget Convenience
Often today’s renters use cheques so rarely they might even have a hard time finding them! With the rise of online payments and web banking, it’s more important than ever to offer tenants a choice of payment methods through a web-based portal. The tenant can then select from several alternative ways to pay, including pre-authorized payments and cash transfers through their financial institution, credit cards, Visa Debit, and Interac.
Your renters can access the payment portal through their mobile phone, tablet or computer and log in to conveniently self-manage the safe and secure electronic payment method. These automatic payments also relieve the burden on property managers to process and chase cheques, lowering operational costs and increasing efficiency.
24/7 Help to Resolve Issues Affecting Payment
When a tenant has a question about their account standing they don’t want to have to wait until your property management office hours to find their answer. Some tenants mistakenly believe they can withhold rent until a repair is completed.
Smart property management companies are offering renters the ability to check their account information as well as see their maintenance request status in real time, 24 hours a day, 7 days a week. The ability to communicate with property management through the portal allows tenants to more quickly and efficiently resolve questions that may be hindering a rental payment.
Property managers need to be able to quickly search and filter through tenant accounts to view outstanding amounts in real time, including how long the account has been in arrears. Sometimes, despite your best attempts to have a tenant meet their obligations, there may be no other recourse but eviction.
By leveraging a cloud-based tenant management solution, like Property Vista’s, landlords can manage all the legal and collection data conveniently in one place. More than just account and payment information, you can track every step of tenant communications from the first notice to the eviction notice. As well, you can also track sheriff activity and court dates making it a vital part of the eviction process for property managers.
Continuous Cash Flow
Staying on top of collecting rent is a major time consideration for property managers every month. When you can implement direct and/or automated communications with tenants through email and text message, you stay top of mind with your tenants and increase the likelihood of prompt rent payment.
Giving tenants the convenience and flexibility to their access account information on demand and set up recurring electronic payments goes even further to ensuring that your property’s revenues stay uninterrupted.