Rent in Knoxville has gone up over four times the national rate, and that may mean that some tenants are a bit behind. However, as a landlord, you rely on their rent payments. What can you do if the tenant is able to pay rent, but it keeps coming in late?
Rent collection doesn't have to be hard. We're here with three helpful tips that can make collecting rent from tenants easier and less stressful for both parties so you always receive your rent on time. Read on to learn more.
Consider Automated Payments
Encouraging tenants to set up automated payments is a good way to ensure timely rent collection. When they automate the payment process, tenants can schedule their rent payments to be deducted from their bank accounts on the day the rent is due each month. This minimizes the risk of forgetfulness or delays.
You should communicate the benefits of automated payments, such as convenience and avoiding late fees. Make sure to give tenants step-by-step instructions for setting up these payments, especially if they're not tech-savvy. This should all result in steady payments.
Offer Early Payment Incentives
This isn't going to work for everyone, but if you find yourself constantly dealing with late payments, this may be the right option for you. Lead with the carrot and not the stick, so to speak.
Offering incentives for early rent payments can motivate forgetful tenants to prioritize on-time rent payments. This strategy benefits both parties by rewarding responsible behavior and creating better tenant relations. A positive tenant-landlord relationship increases the chances of lease renewals.
Make sure to outline the incentive program in the lease agreement. If it's not in the lease, it officially doesn't exist. Consider offering a small discount on the rent for payments received before the due date.
Allow Various Payment Options
How do you collect rent? If there's only one method available to them, you're living in the past. Collecting rent from tenants has to be as easy as possible for both parties, so be flexible.
Some tenants, often older ones, still prefer to pay with checks. However, checks are likely to become obsolete over the next few years. This means that they shouldn't be your only option.
Many tenants prefer paying online (which also helps you with the automatic payments detailed in our first point). A tenant portal makes those online payments seamless, and tenants will be able to pay with their cards or straight from their bank accounts.
Rent Collection Can Be Easy
Rent collection doesn't have to be a frustrating part of being a landlord. By offering early rent payment incentives, providing several payment options, and encouraging automatic payments, you can receive your rent payments on time every month and build better relationships with your tenants.
Are you in need of help with your Knoxville, Tennessee rental properties? If so, PMI Knoxville is here to help. Our property management experts can assist with rent collection, lease enforcement, and more.
Schedule a consultation today to learn more about our services.