The ability to collect rent on time is critical to the success of any real estate investment professional. Late rental payments hurt your cash flow and create more work for you to track down tenants and payments.
You don't have the time to deal with payment reminders or juggle invoices to navigate fluctuating cash flow because renters take advantage of "the check is in the mail!" How does "no more late rent" sound? Apply these rent collection tips from our expert Sarasota property management professionals.
Rent Collection Is a Common Frustration
If late rent is an ongoing issue for you, you're not alone! Many rental property owners spend frustrated moments every month wondering if the rent checks will show up on time, then negotiating with residents to turn their payments in as soon as possible.
It's time to reduce the volume of reminders you send to renters who delay their rental payments! Through our long history and experience with property management in Sarasota, we've found these tips to be successful when collecting the rent— and we hope you do too!
No More Checks
Streamlining your rent collection procedures can help residents make on-time payments. It might be a tough transition for some of your Sarasota tenants, but we recommend no longer accepting checks or money orders.
Putting checks in the mail often leads to lost checks or "lost" checks when a renter simply hasn't put it in the mail yet. Checks can also bounce, and they require a trip to the bank to make your monthly deposit. This adds time to when your rental income is actually available to you and can hurt your cash flow.
If you have a few holdouts who can't adapt to digital payment methods, consider a secure drop box at your leasing office where tenants can safely drop off their payments without risking another check lost in the mail!
Set Up an Online Payment System
So, if you don't take checks, how do you get paid? Our Seattle property management professionals recommend online-only payment methods. It can be an adjustment for older tenants who have always written you a check every month. However, working with your residents and offering incentives can encourage them to log into a secure online portal to pay the rent. In most cases, we find that given the option to pay online, renters of all age groups prefer (and enjoy) the option!
Allow residents to pay via ACH or another electronic and instant method, and you'll see how quickly more rental payments come in on time every month. Plus, online payment processing allows you to get paid directly without a trip to the bank to deposit checks!
Improve Communications and Reminders
Inevitably, property owners will still have a tenant that misses a rental payment. Whether they forget to log in or set up an automatic payment, or they simply didn't pay this month, it's critical to improve the timeliness of your reminders.
The lease should document when payment is "late" after the due date passes. An online payment system allows property owners to set up notifications to automatically go out when a tenant goes the specified number of days beyond the due date without paying the rent.
Timely and professional reminders help improve prompt rent collection!
Don't Be Afraid to Enforce Late Fees
Never be afraid to enforce late fees per your lease agreement. If you're not sure how to include late fees in the lease, work with professional property management in Sarasota to put a custom lease agreement in place. This document should include the monthly rent amount and due date when a payment qualifies as "late," and the fees associated with past-due rent.
Document everything when it comes to enforcing late fees. From reminders to all communications with your tenant about collecting the late payment, keep good records to support applying late fees to a past-due payment.
Late fees and past due rent also need to follow Florida laws. Work with a property manager in Sarasota to set a rent collection and late fee process!
Bring on a Sarasota Property Management Professional for On-Time Rent Collection
Rent collection is easier when you bring in Sarasota property management professionals to do it for you! Getting paid on time means investors can cover their monthly expenses, manage cash flow, and plan necessary maintenance or upgrades to keep rentals in excellent condition.
Choosing Gulf Coast Property Management means you get a fully online rent collection system that allows tenants to log into a secure portal to pay the rent. They can also check their balances, put in a maintenance request, or schedule a rent payment if they know they'll be out of time when the rent is due. When we encounter past-due rent, our experts send timely reminders and enforce late fees.
If late rental payments are an ongoing frustration for you, we're here to help! Our property owners enjoy better on-time collection rates and cash flow.