One of the reasons why some tenants fail to pay at the right due date is because in general, people avoid hassles; our brain is wired to choose what’s easy and what’s more practical to focus on. Most of the time, our mind tends to concentrate on its most familiar routines to avoid bothering itself with difficult questions and the time-consuming adaptation process. Therefore in dealing with tenants, especially regarding money, it is a proven effective action to buffer the business with an established system of payment that is convenient to both the landlord and the tenant.
First example: Payment System
If you’re a landlord, here are some ideas. By simply providing a payment system, online easy money transfer, for example, you are doing your business a great favor. When a tenant fails to pay on time, it also means late income for your business. Therefore sometimes you have to implement something just to make sure the tenant cannot intentionally repeat the irresponsibility. And, the best way to be efficient is to use systems that really work.
You can also set up an “automated bill payment or debit payment system”. This could be a lot more convenient because for as long as it is enabled in your account the banks themselves will do the transaction alone, automatically transferring money every month to your account. So for those who prefer non-cash payment, they’ll have an immediate option. This is a big plus for the landlord while also a convenient option for tenants who prefer digital transactions. Some management company offers incentives such as rent discount for consistent or advanced payment.
Tenant reward system
As additional ideas, you can also give rewards to tenants with initiatives and concern for the property and most especially, tenants with concern for you as a person and not just a landlord. You can also give rewards to tenants that pay on time and have never really given you headaches when it comes to their occupation, or perhaps tenants that sign up early for your tenant-landlord portal program. These are just some of the possible reasons to give a reward, though, the possibilities are endless. The important thing is for a landlord like you to strategize and not compromise the consistency of your rental program and your cash flow. So there should be many ways to protect it.
What about partial payment?
It is also not advisable to accept partial payments. This is because partial payments require more work and it affects the consistency of your collection. So to avoid having issues related to the schedules, as much as possible do not allow partial payments. Now to consider some tenants that prefer cash because that’s more convenient to them, there will be no problem with that for as long as you establish an efficient management system for this. Usually, the professional approach by managers includes processing the cash themselves. However, if ever you give a chance for partial payment, perhaps for a very considerable reason, it is highly recommended that you both sign a contract specifically for this; a clear agreement for assurance.
Here are additional actions a good property manager can take to make sure the tenants pay on time:
Tenant screening – ask questions and know their qualifications by getting some information during the application process. You can include the credit background, criminal background, and tenancy background of the applicant to be sure that accepting them is the right decision.
Be firm on the policies – once you figure out the things you want and don’t want for your property, be firm on these and uphold your rights as a landlord. This can only be effective by clearly explaining the clause, making the tenant fully understand the payment rules (when, where, and how to pay) and other regulations that are supposed to protect the property. If you want fines for any violation of rules, it’s your right as well. However, just make the tenant understand the purpose of this condition. So again, be clear and be firm on your policies.
Send a reminder a week or few days before the tenant’s due – this helps a lot as some tenants forget their due because of other important reasons such as work schedules, family matters, and even personal problems. Therefore, a good property manager takes care of the tenant by giving a reminder a few days before the deadline.
Apply the rules without violating the anti-discrimination laws in your area – honestly, only professional property managers can take care of this aspect of the business. They are the ones equipped to handle the legal matters of the property as they are experts in this area; they work with lawyers that are specifically trained for this industry.
Lastly, do not go with eviction action if you are not legally ready – again, always remember that even management companies deal with eviction carefully by not taking immediate action against it. Sometimes, it is better to let the tenant settle the case first before filing an eviction case. Even if things to go right and you win the case, you’d still have to spend a considerable amount of money and time.
Now, if you think you have no capacity to perform all these duties, the right thing for your business is to hire a company that will manage your property professionally. To have more details, contact us at Jaxon Texas now.