Are you a landlord who relies on rental income to maintain adequate finances?
If so, you’re not alone. Many property owners consider their rental properties a critical part of their annual income. Of course, every responsible adult should have a rainy-day fund to cover them in emergencies, but it’s not always that easy.
So, what do you do when a tenant decides not to pay up? Eviction is a tedious and challenging process to be avoided at all costs. Fortunately, implementing rent collection strategies before there’s an issue can reduce the chances of a rental dispute arising further down the line.
Read on to find out more.
Formal Contracts
The first and foremost way to protect yourself as a landlord is to write rental payment details into your tenancy contract.
Specify how much will be paid, when it will be paid, the payment method, and the penalties for a missed payment. Additionally, never accept cash payments. Taking cash is a slippery slope to missed rent payments and unreliable income.
Bear in mind that many tenants don’t read the small print of rental contracts thoroughly, so also have a verbal conversation about your expectations.
Keep Communication Lines Open
Effective communication is critical if you talk directly with your tenant rather than using rental property management companies.
Request that they inform you immediately of any potential changes in financial circumstances. Be friendly and assure them that you’ll work out a solution with them.
This way, you can handle issues as they arise rather than getting a nasty surprise when your tenant finally admits the problems they’re facing.
Offer an Incentive
Incentives are unnecessary for most tenancies but can be helpful in certain situations. If you’ve signed a contract with a tenant that you think may not be able to pay on time, consider offering them an incentive.
For example, if they pay rent on time for an entire year, discount them 10% on the monthly rental price. This will incentivize lower earners to prioritize paying rent over other unnecessary expenses.
Speak with your tenant about this option if you feel concerned and see whether they think this will benefit them. On the flip side, you can implement a penalty for late payments.
Use Property Management Services
Finally, consider hiring property management companies if you want absolute peace of mind and security. These companies will ensure that rent is paid in full and on time every month.
Search for local property management companies and find one that suits your needs as a landlord. At Florida Long Term Rentals, we provide various services to help manage your properties.
Making Rent Collection Easy
Implementing secure rent collection strategies at the start of any tenancy could be the difference between a stress-free arrangement and a pricey courtroom battle.
Don’t make the mistake of having an informal rent collection process; you’ll only regret it later. Fortunately, at Florida Long Term Rentals, we’re here to help with all aspects of property management.
Contact us today to understand more about the solutions we offer our clients.
