If you have money to invest, a rental property is one of the best ways to make a regular income. Yet your financial dreams can unravel if you face issues getting tenants to pay their rent on time.
Read on for some dos and don'ts with your rent collection in Frisco, TX. Use these tips to ensure your rental income is a dependable financial source, not a troublesome headache.
Do Try Digital Payments
If you have typically collected rent via bank transfers, it's time to switch to digital payment platforms. They make rent collection more manageable.
Payment platforms are secure, allowing you to trace all payments coming in from tenants. It's also more convenient for tenants.
From a single dashboard, tenants can see when their rent is due and their rent payment history. So, they have no reason to forget an upcoming rent collection.
Some platforms even have notifications you can send to your tenants to remind them that the rent is due, helping reduce the administrative burden of chasing after payments.
Don't Ignore the Law
You must follow all local and state laws when collecting rent. Otherwise, you could face legal disputes or fines for breaking rules.
It could also cause trouble if you want to evict a tenant for non-payment if that tenant can claim you didn't follow due process with rent collection.
For example, if you offer tenants a grace period for rent before you charge fees, you should state this in the lease agreement. You must also provide tenants with receipts if you collect rent in cash.
Always keep up with any changes to the law to ensure your rent collection methods are fully compliant.
Do Be Clear About Your Payment Terms
By providing clear terms for payment, you can make it more manageable for your tenants and reduce the chance of confusion and misinterpretation.
Write your terms in your lease agreement, and clarify essential rules like fees for late payment. You may want your lease agreement checked by professional experts like our property management team.
Make sure you talk to your tenant about these rules, too. Don't depend on the small print, but ensure it's communicated in straightforward language and it's easy for them to spot before they sign.
Don't Forget to Communicate With Your Tenants
Good tenant relationships start with excellent communication. Always prioritize that; a short conversation can settle most minor payment issues.
If you have spotted a late payment, call your tenant and find out if there is an issue. It could be a minor problem. For example, perhaps they forgot. Or they may have a more pressing concern, like losing a job.
If it's the latter, talk them through their options. You could offer a few weeks' grace period, allowing them extra time to resolve their employment situation.
Rent Collection: Simple Steps to Making It Hassle-Free
As a landlord in Frisco, you don't want to spend every busy day chasing tenants for money. Use these tips to ensure your rent collection system is reliable.
If you need more help collecting rent payments, consider hiring our property management services at PMI North Texas. Discover why other landlords use our highly-rated rent collection services.
