The Dos and Don'ts of Effective Rent Collection for Landlords

The Dos and Don'ts of Effective Rent Collection for Landlords

Imagine a world where tenants pay their rent on time, in full, and without complaint. It's a beautiful thought, isn't it?

While you will never have 100% of your tenants on the same page, it is possible to have a majority of them follow the payment rules. The key is to create a system that works for both you and them.

If you are wondering how to have effective rent collection in the Teaneck, New Jersey area, this short and simple guide is for you.

Do: Have a Written Policy for Late Fees

A written rental property policy is essential because it helps you avoid any confusion about what's acceptable and what isn't. If you have a policy in place, your tenants will know exactly what to expect if they don't pay on time.

For example, your policy could clearly state there is a late fee, what the late fee will be, and when you will apply it. Consider including a grace period, which gives tenants a few days after their rent is due before you charge any fees.

Don't: Threaten Eviction as a First Step

You can't just make a tenant leave if they're late on rent. You need to go through the legal process of eviction, which is expensive and time-consuming.

Many landlords only resort to this if they don't have a better option.

Instead, talk to the Teaneck, New Jersey area tenant about their situation. See if you can work out a solution that doesn't involve eviction.

Do: Make It Easy to Pay

When you have several ways to collect rent, you know one of them will work for your tenant. You can have your tenant mail the check, drop it off at your office, or send it through their bank.

You can also have online rent collection for checks, credit cards, PayPal, and more.

This can be beneficial for both you and your tenants. You can make sure your rent gets paid on time, and it keeps the tenant from feeling like they're limited to a few options.

Don't: Accept Partial Payments

Your rental income comes from your Teaneck, New Jersey area tenants. Losing any of it would put you in financial jeopardy.

Never accept partial payments, even if you're just trying to be nice. Paying only a portion of what the tenant owes can lead to late fees and lost rent payments.

If a tenant asks, be polite and explain that you can't accept partial payments. If they still insist on paying only a portion of the rent, tell them you won't accept any money until they pay what they owe in full.

Setting Ground Rules for Rent Collection Makes It Easier

Rent collection is a part of the job that many landlords hate. It can be time-consuming, stressful, and incredibly frustrating. However, if you set clear rules for rent collection early on, the process will be much easier to manage.

PMI North Jersey is a property management company that offers a range of services to landlords. Contact us today to learn how we can help!