Just a year ago, in the fall of 2022, 15% of American households were behind on rent. They've had plenty of time to catch up, but you may still be seeing tenants who are having trouble.
When people don't turn in their rent payments punctually, then this can have an adverse effect on your income. If you've got many of your own bills to pay, then this can pile on unnecessary stress.
Thankfully, there are ways to improve rent payment times. Here are some rent collection strategies to use to ensure you get your money without delay.
Set Clear Rent Due Dates
Telling your renters that they can pay anytime during the month won't suffice. To make instant improvements, set a clear rent due date, such as the first of every month. Picking a simple date like the one above will help tenants remember when they need to get their money in.
The lease should also clearly outline the rent amount, along with the due date. Make sure you set acceptable payment methods too, so your tenants have no confusion about their rent obligations.
On that note, send constant reminders through various channels. In many cases, people genuinely want to pay rent punctually, but their lives are so busy that they forget.
Send out automated reminders to renters a few days before rent is due. Use channels like email and text messages. A property management company can do this for you to take the hard work off your hands.
Offer Discounts and Incentives
A fantastic way to motivate your renters is to offer discounts and incentives for paying rent early or on time. Also, reward responsible tenants by giving them further discounts and incentives for always paying rent on time.
On the flip side, implement late fees for those who are irresponsible. People hate losing money, so they'll be driven to hand over their rent check by the due date.
Use Online Portals
By now, physical checks are outdated, and paying a large sum of money in cash is cumbersome. Encourage your tenants to make online payments, as it's more convenient for everyone involved.
Ensure that they can transfer money through bank transfers, credit card payments, and electronic funds transfers (EFTs). Ask renters to set up automatic rent payments through direct debit authorization too, since they won't have to make manual payments.
Pair these online payment methods with a user-friendly portal. Not only can your renters make payments, but they can also check their payment history, put in maintenance requests, and more.
Improve Rent Collection at Your Property
Rent collection can be an arduous process, but it doesn't have to be. When you have excellent strategies in place, and you use the right tools, you'll see rent money land in your account in a more timely fashion.
The above is all true if you employ the services of a property management company. Plus, you'll get assistance with other exhausting tasks, so you'll free up valuable time.
Contact us today if you'd like help with rent collection in Milwaukee. We at PMI of Greater Milwaukee can help with other residential property management needs too.