It’s the first week of the month, which means bills (mortgage and loan payments) are due for landlords and property owners alike. We landlords count on timely rental payments coming in before the first (1st) of the month in order to pay our bills. Below are a few tips that we’ve learned from owning a 250 unit portfolio spread over 100 properties throughout the years. For the landlord owning several rental units down the street or upstairs on the second or third floor, these below tips may not be as helpful, as there is no better way than face-to-face payments. Unfortunately, for landlords and owners with more than several units, this becomes an uneconomic option due to the time commitment.
- Rent Invoices with Self Addressed Envelopes: Even as technology progresses, there is something to be said about the effectiveness of sending out paper invoices. We recommend sending rent invoices every month 2 weeks before rent is due with a self-addressed envelopes.
- Email Reminders Before the 1st day of the month: Emails take less than 5 minutes to compose and send out to all your tenants with email addresses on file, yet very few landlords take the time to do so.
- Providing Multiple Payment Methods: You want to make sure that it is convenient for tenants to pay their rent. We’ve all heard the excuses that tenants have brought up. Offering payments solely by money order or personal check allows tenants to “forget” to run to the bank. Additional payment methods such as direct deposit ACH, debit card, and credit card should all be offered to increase the probability of payment. We use a software run by AppFolio that allows the above types of payments.
- Calling Tenants on the 3rd day of the month: Hopefully your tenants have paid their rent by this point. But if they have not yet paid rent, we suggest that you call and remind them that rent is due by the 1st and if it is not received by the next 3 business days, they will receive a notice and legal action will be taken.
Follow these tips to ensure that a tenant is never late on their rent again!
Editorial Note: Opinions expressed here are the author’s alone. The contents of this blog should not be taken as legal advice. Always consult with an attorney.