If you’ve ever had to deal with late rent payments, you know how frustrating it can be. We’ve got three tips to help you avoid a headache and keep on good terms with your tenants.
1. Screen tenants
Before leasing to tenants, make sure you screen them. A credit check is a good way to see if your tenant has a history of late payments. As a landlord, you’re looking for a renter that is financially stable, so make sure you have an understanding of their financial situation before you start renting to them.
2. Use an online rent payment service
Online payment services can not only help you keep track of payment history, it can also help your tenant pay rent on time. Online payments can be made via smartphone, so it’s easier to pay on-the-go.
3. Have a clear payment policy
Set you and your renter’s up for a smooth payment process by having a solid payment policy and sticking with it. Your policy should be included somewhere in the lease and can be thoroughly reviewed during the signing.
Be sure to mention when the full amount is due when it is considered late, and the consequences of late payments. It’s a good idea to also go over acceptable forms of payment.
BONUS: Reward Tenants for Paying On-Time
Some landlords reward tenants for their consistency by offering incentives. This can take the form of a discount, i.e. Rent is $750, but it’s $725 if paid by the 1st of the month. You may also just surprise a responsible tenant with a gift card every now and then to thank them.