US tenants are in a tough situation: their rent is outpacing their salary. According to CBS News, the average nationwide rent increased 30%, compared to 20% for wages during the same period.
As a landlord, this makes the process of rent collection a bit awkward. There may be more instances of late payments, non-payments, and all the bad feelings these situations lead to. What effective property income strategies do you need to avoid making the process any harder than it needs to be?
Fear not, Punta Gorda, FL, property owners. In this guide, we give you rock-solid landlord tips for navigating the treacherous waters of rent collection.
Make Rent Collection Painless
If you do only one thing, and nothing else, then make rent collection as easy as possible. Humans are practically hardwired to prefer convenience, even at the expense of other things.
Just think of the reasons why you patronize Amazon over other retailers. It's probably because of how you can buy a new toaster in a few taps and get it with the same-day delivery.
In that spirit, simplify rent payment methods as much as you can. Think of the strategies you employ to attract tenants in a tough market. You can try things like:
- Offering an online portal
- Accepting multiple payment methods
- Allowing for automated rent payments
Not only is this convenient for them, it's convenient for you. You won't need to spend your time pestering them for rent. Instead, you can focus on the things that matter, like decreasing vacancy.
Communicate Openly
Communication is always the best policy if you want to avoid bad feelings. Sometimes, a tenant isn't late on their rent because they don't want to pay it. They may just be in a tough situation and are afraid to tell you.
Be a friend to your tenant. They may open up to you and confess that they've just had a difficult month, financially speaking, and there won't be any more late payments. Had you not spoken to them, things could've easily ended in a misunderstanding.
Send Reminders
At the very least, consider sending them friendly reminders. Tell them when rent is due a week before beforehand, then a day before, and so on. Oftentimes, they may just be a bit scatterbrained and need a reminder.
Hire Property Management
At the end of the day, rent collection is a clerical duty. It's busy work that has to be done, delaying you from fulfilling other, more important tasks. Consider giving yourself more hands, as it were, by hiring full-service property management.
Property management can handle rent collection, evictions, maintenance, and more. It'll save you time and may increase your earnings as well.
Find Real Estate Management with PMI
Rent collection doesn't have to be so awkward. The process becomes a lot more efficient with a convenient online portal and open communication. For peak efficiency, you'll want to hire property management.
PMI Heartland Realty in Punta Gorda, Florida, provides full-service property management. Testimonials from our customers praise us for our excellent management, attentiveness, and community involvement. Become one of our happy clients by doing a free rental analysis.
