Strategies to Limit Late Rent Payments
Late payments are every landlord’s pet peeve. Regardless of who you’re renting to, where you’re located, or how much you’re charging each month, you’re bound to get at least the occasional late rent payment. Thankfully, there are a few strategies you can use to encourage your tenants to pay on time. Scott Safadi of Cal Bay Property Management advises all property managers to create policies that make it easy for renters to do right by your team.
One way to do just that? Offer various platforms for tenants to pay their rent on, be it online, via an app or in person. While online payment has become more mainstream over the years, many landlords do not yet offer it to tenants. It’s an easy and convenient way to ensure payments are made on time, and can save you valuable time you’d otherwise spend processing checks!
While you’re at it, consider sending friendly reminders of rent due dates each month. Even if rent is due on the first of every month, tenants can become confused when it falls on a Sunday or a holiday. A gentle reminder of when rent is due can help eliminate excuses tenants have about rent due dates.
Late payment penalties are a tried and true strategy, and for good reason. People don’t like shelling out cash unnecessarily, and even a small fine can encourage your tenants to pay up on time. The reverse is also true: by rewarding your tenants who pay by their due date, you up the odds of future payments being made in a timely fashion.
Finally, if you find the same tenants are late each month, work to understand why this happens. Depending on someone’s pay periods, they may struggle to make the deadlines you set. By working from an empathetic perspective, you can help yourself and your tenant!
- Scott Safadi, Cal Bay Property Management