About 15 percent of Americans are behind on their monthly rental payments. Late rent collections mean investors risk being late on utilities and bank payments. Being a landlord also means having the right system in place for on-time rent collections so that no one is late!
Make collecting rent a breeze by hiring a property management company and determining when rent is due. Also, set up automatic payments.
Here's more on best practices for collecting rent in San Mateo, CA.
Hire a Property Management Company
Professional property management companies will make sure rent collections are timely. Managers will set up ways to collect rent, whether electronically or by cash, and be certain people in your rental properties pay on the dot.
A property manager will also deal with late payments and go after renters who skip payments. Property managers know California law and how long they must wait before beginning the eviction process.
A property management firm is essential if you are an out-of-state landlord.
Be Clear About When Rent is Due
Being a landlord means setting forth details for renters. In addition to rules and regulations, being a landlord should include discussing when rent is due each month.
What happens if the rent is late? Will there be a grace period? How will you collect rent?
Put these things in the rental contract. When you must raise the rates, there should also be a discussion requiring the tenant to respond.
Set Up Automatic Payments
Rent collections are simple when you set up automatic payments. Ask each tenant for the bank information. You can make automatic payments for your rental properties each month.
You will stop the hassle of billing and rental coupons with automatic payments. Moreover, you can send reminder emails or text messages to ensure renters pay on time. Renters will immediately know if the money goes through.
It's also paperless! You will reduce your carbon footprint by using less paper.
Use an App
Suppose tenants don't want to use a bank; set up rental payments with an app. People can pay their rent each month using their smartphones or tablet. Apps are a secure way to send money.
Landlords can also use the app to report their findings to the credit bureaus.
In addition, allow the app to handle other functions, such as signing documents and updating tenants on news and information. The app lets landlords know of repair requests.
Best Practices for Rent Collections in San Mateo, CA
Best practices for rent collections in San Mateo, California, include hiring a property management company and being clear about when rent is due. Also, set up automatic rent payments and consider using an app. Following these steps will make sure the rent is timely.
A property management firm is the answer to your rent collection problems. We can help you make sure tenants pay on time! Contact us today, and let's get the process moving!