Collecting rent from tenants! It sounds so simple, right? But let’s face it: it is quite a task in itself. If you are a rental property owner, then you must have come across tenants who often pay rent days after its due date. And it can be quite frustrating to just sit and wait for them to pay it.
Just imagine, chasing tenants for rent payment! It is not only a waste of time but stressful too. So let’s talk about common rent collection mistakes you can avoid to collect rent on time:
- Not enforcing rules regularly
It’s not ideal to enforce the rent collection rules irregularly. For example, you’ll be setting a bad example if you don’t issue a late fee after a late rent payment one time and then issuing a late fee after another late rent payment. It will make the tenant question your integrity.
So you should be consistent with the rules and regulations. And you should also make sure that you are not providing special treatment to any particular tenant because it can harm your reputation.
- Not Sending Rent Reminders
This is one of the most common rent collection mistake which rental property owners usually make. Work, college, holidays, hangouts, household chores, etc. – There are many things that occur in tenants’ daily life that could distract them from remembering the due date of rent.
That’s why you should remind them of the due date by sending them the rent reminders a few days before the due date. You can use WhatsApp messages, phone calls, or SMS to send rent reminders. Tring Tring!
- Accepting Partial Payments
Unless there are extreme circumstances like the coronavirus pandemic, it is not advisable to accept partial payments.
You’ll be setting a bad example if you think that it is better to get Rs.3000 instead of an entire rent of Rs.10000 for the month. But even if you decide to accept partial payments, make sure there is a penalty, fee or other measures so that your tenants don’t make it their habit.
- Not sending a “Pay or Leave” notice
Don’t hesitate to send a “pay or leave” notice if a tenant is not paying rent. The notice includes the numbers of days that the tenants have to pay the due rent.
If the tenants settle the rent before the date mentioned in the notice period, then good. But if not, then it’s time to file an eviction lawsuit.
- Never charging a late fee
This is yet another rent collection mistake that rental property owners make. Charging a late fee is an effort to let tenants know that the late rent payments will have consequences. Not only will it stop tenants from missing payments but it will also compensate for the inconvenience.
Hopefully, now you’ll be able to avoid these rent collection mistakes!
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