Owning a rental property can be a great idea until your tenants never pay rent on time. Then suddenly what seemed like a smart investment becomes a liability. It is difficult to pay your own bills if the rent isn’t coming in. There are steps you can take to encourage your tenants to be more responsible and pay promptly.
Communicate Well, Right From the Start
Make sure your tenants understand from the day they inquire about the lease when the rent is expected in full. Do you have a grace period or a late fee? Put it all in writing in the lease agreement and go over it carefully with your tenants. Tell them how and where to pay it as well. Is there a dropbox or do they put it in the mail?
Reward Good Tenants
A great idea from the experts at www.rentrescue.com is to give tenants who pay on time a little gift, such as a a gift card, fruit basket, or even a small reduction on next month’s rent. Everyone responds to rewards.
Enforce the Rules
If your lease has a late fee, charge it. You must keep your promises or you lose credibility. Rent is a business transaction and you must treat it as such.