6 Tips for collecting rent on Time

Collecting Rent on Time


Collecting rent on time is one of the biggest pains that property owners face. Especially, when the owner is an NRI.

Even if you sign the collection policy in agreement with the tenant, there are still several operational issues.  What is the best way to collect rent from tenants and avoid any potential disputes?

Well, in this blog, we will tell you five very effective tips for collecting rent on time.

#1 Assign the task of rent collection to the property manager

Yes, it is a smart way of doing that. A property manager is a person that manages your property. Of course, it comes with a cost. However, the peace of mind you get is terrific. The expense surely overweighs the expense.

#2 Be clear about payment instructions

Ambiguity in instructions is a big issue that creates problems in rent collection. When you sign the rental agreement it is expected that the tenant knows everything about the rent.

How much rent should he pay? What is the scheduled due date? What is the rent collection process? What if the regular mode of payment fails? What if the tenant is not in a position to pay the rent in a particular month?

Everything about the process should be clearly told and explained to the tenant.

#3 Impose a Late Payment Fee

Everyone wants to delay payment unless there is no penalty for it. Hence, there has to be a late payment charge for collecting rent from tenants as well.

Once the due date passes, you should send a reminder. If the reminder is also overlooked, then there should be a surcharge.

Make sure it is mentioned and signed in the rent agreement.

#4 Sent automated reminder

Just like your tenant misses the rent payment, you might also miss sending him the rent invoice. For that, establish some system of setting an automatic reminder for collecting rent payments. As soon as you receive a reminder, you should send the rent invoice. Such automation will avoid human errors.

#5 Offer multiple payment modes

With the advancement of technology, you have several automated ways of accepting rent online. You should give different choices to the tenant so that there is no question of missing the rent.

#6 Use mobile apps

It is tedious for everyone to pay the rent using old-fashioned methods. Be smart and use mobile apps. They are fast, easy, and convenient

 

 

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