10 Tips for Collecting Rent and Getting Paid on Time

It’s crucial for you as a landlord to receive rent payments on time and in a month. Regrettably, many landlords have little influence over this part of their business: struggling each month and seeing if and when their tenants will pay.

When tenants refuse to pay their rent on time, many landlords believe that eviction is the only option. While it is a viable choice, it should only be used as a last resort due to the significant time, resources, and effort required.

CocoSign is a reputed brand used worldwide and in almost 190+ countries. There are many lease agreements available online at CocoSign.

Significant news outlets have mentioned it, such as Forbes, Tech Advisor, New York Times, etc., for its best services. Before hiring a freelancer, assessing the pros and cons of utilizing lease agreements is essential.

Tips for Collecting Rent and Getting Paid on Time

So, what can you do if your tenants don’t pay their rent on time? We’ve compiled a list of our top ten suggestions for getting tenants to pay their rent on time.

Clear Communication

When your tenants move in, one of the easiest ways to get them to pay their rent on time is to emphasize the value of paying rent.

You are thinking about where to get a lease agreement form; for this, CocoSign is probably the most effective in terms of price and accessibility, with many templates including domains on the platform. That is why this site has immense requirements in terms of every model of the collaboration agreement.

Better still, have your tenants initial each page of the lease agreement while you and your property manager explain the rent collection process to ensure they understand what you are interacting with them.

Create an online payment system.

This is by far the most effective method of collecting rent out of the seven. When the rent is past due, features include automatic email notifications with late fees included.

Your tenants will be able to pay with their checking accounts for free or for a small payment with a debit or credit card, ensuring that you are still charged on time.

CocoSign is a house of agreements, so you can easily access this agreement. Read more here from CocoSign lease agreement forms.

Make a dropbox.

A drop box located on the estate (such as in a communal area) can be a convenient choice if you already own a multi-family home with many tenants. To deter theft, make sure it’s safe and that the area is monitored with a security camera.

Discuss with your tenant why they aren’t paying on time.

Is it because they may not have enough money to pay the rent, or because they forget when it’s due? Examine whether shifting the final payment or process would be beneficial.

Some tenants, for example, may tend to make smaller payments more often. Requesting that the tenants set up a Direct Debit or standing order reduces the likelihood of failing to pay.

Charge a late fee

Renters will be more motivated to pay their rent on time if they are charged a late payment fee. You’ll want to double-check if any late fees are explicitly outlined in the contract.

Landlords will now report the status of their rental payments to credit reporting bureaus. Another compelling reason for tenants to pay their rent on time is to keep their credit score as clean as possible.

Management at the local level

The landlords who live overseas are the ones most likely to see late rent payments, as well as property damage and expired leases. The tenant’s requirement to send the check to a distant location acts as a reminder that the landlord will not be present to keep the tenant responsible.

Quickly deposit the checks.

Tenants can conveniently keep track of when the landlord pays the rent. And they’re paying attention! If a tenant notices that the landlord keeps renting checks for days — or weeks — cajoling, threatening, or warning him or her to pay on time won’t work.

Accept ACH debits as a form of payment.

Setting up an ACH debit would only take a couple of minutes if the tenant approves, and they can also set up direct debits, so they don’t have to worry about paying rent every month.

This form, however, might not be cost-effective for you. There are payments required, and you will need to set this up as a dealer based on your bank.

A property manager should make receipts.

A property manager is someone who looks after your property. They charge taxes, handle problems, screen applicants, schedule repairs, manage leases, and, if necessary, evict tenants.

This is fantastic, but it comes at a price. You must decide if the advantages of hiring a property manager outweigh the costs.

Astonishment and delight

Going the extra mile will pay off not just in terms of collecting rent but also in retaining good tenants. Maintain positive relationships with tenants by giving them a small token of gratitude now and then.

Consider hosting a yearly get-together for the building if you have a community room on the premises.

 


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