Think about it: You're a savvy landlord in the bustling Burlington area, where property demand is as high as the Green Mountain peaks.
But there's one recurring headache: rent collection. From forgetful tenants to overdue payments, navigating the ins and outs of collecting rent can feel like traversing a rocky trail.
Luckily, we can help. Let's go through how to handle rent collection in Burlington.
1. Allow Online Rent Payments
Having an online tenant portal for payments can make your life a lot easier.
Select a reputable online payment platform or property management software that supports online rent payments. Look for platforms that offer security features to protect both landlords' and tenants' financial information.
These platforms can also make your accounting easier since you'll have more accessible records.
Ensure the online payment platform accepts various payment methods, such as credit/debit cards, ACH transfers, and electronic checks. Providing multiple options accommodates tenants with different preferences and banking setups.
Enforce late fees for tenants who fail to pay rent on time, as outlined in your pre-existing lease agreement. Clearly communicate the consequences of late payments to encourage compliance with payment deadlines.
2. Follow Up
Send friendly reminders to tenants a few days before the rent due date. You can utilize email, text messages, or automated phone calls to remind tenants of upcoming payments.
Offer various communication channels for tenants to reach out regarding rent payments, such as email, phone, or a dedicated online portal. Ensure that tenants know how to contact you if they have questions or concerns about their rent.
If a tenant consistently fails to pay rent despite follow-up efforts, be prepared to escalate the matter. This may involve issuing a formal demand letter, initiating eviction proceedings, or seeking legal assistance.
3. Give Out Incentives
You can also give out incentives to timely tenants.
Offer your tenants a discount on their monthly rent if they pay before the due date. For example, you could provide a 2-5% discount on the monthly rent for tenants who pay by a specified early payment deadline.
Encourage tenants to refer new, qualified renters to your properties by offering referral rewards. You could provide a rent credit or gift card to tenants who successfully refer someone who signs a lease and pays rent on time for a certain period.
4. Hire Some Help
Property managers can be super helpful for collecting rent payments.
Property managers specialize in rent collection and have experience in implementing effective strategies to ensure timely payments from tenants. They can establish clear rent collection policies, communicate payment expectations to tenants, and follow up on late payments promptly.
Property managers act as the primary point of contact for tenants regarding rent-related matters. They can answer tenants' questions, address concerns, and provide assistance with setting up online rent payments or resolving payment issues.
Use These Rent Collection Strategies Today
There are a lot of rent collection strategies you can use to ensure you're optimizing your profit.
Are you ready to bring in property managers in Burlington? At Legacy PM Inc., we have over 30 years of collective experience.
Contact us today.