6 Tips for 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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