The Public Policy Institute of California reports that rent prices have increased by 10% while vacancies remain low. It's the best time to be a property owner in the state, but rent collection can be quite a hassle if you're self-managing the property.
Discover four property management ideas you can implement to streamline rent collection.
1. Set Clear Rent Policies
Drafting and implementing a clear policy is essential to enhance rent collection. Have all tenants read and understand the rent policy before they sign the lease. A rent policy should outline the following details:
- Late fees and penalties
- Rent due dates
- Grace period
A clear rent policy should be transparent and follow the local property laws. For instance, the California Department of Justice bars landlords from raising rent by 10% over one year.
Self-managing your property can make it difficult to enforce your rent policy properly. A professional property manager can help you draft a rent collection policy that maximizes your rental income and enhances lease renewal for reliable tenants.
2. Utilize Different Payment Options
One of the best landlord rent strategies is diversifying your rent payment options by combining online and offline methods. Online rent payment options make it easier for tenants to honor their obligations. It's also easy to track and stay on top of all payments.
You should also ask your tenants their preferred rent payment option when they sign the lease. Some tenants will want to pay online, while others prefer handing the money to you in cash.
Separate your rental income from other incomes you may receive. Differentiating owner disbursements enhances accounting, making it easier to know whether your property is doing well.
Automating your rent collection process using an online payment method is efficient. A professional property manager can help you with the following:
- Setting attractive rent rates
- Implementing the best income distribution strategy
- Handling bookkeeping and tax compliance
3. Screen Tenants
Screening all prospective tenants is the best way to find reliable clients willing to honor the terms of your lease. Some of the information you should check out during the screening process includes:
- Employment history
- Criminal background
- Rental history from previous landlords
- Credit score
Tenant screening allows you to understand how an applicant will behave or if they'll be late on their rent. A reputable property management company can effectively screen applicants and provide you with a list of viable tenants.
4. Communicate Openly with Tenants
Effective and open communication between tenants and landlords is a key real estate revenue tip. By talking with your tenants, you get an opportunity to:
- Send out rent reminders
- Learn and plan for tenant's financial difficulties
- Enforce the terms of the rental agreement
- Advise on tenant payment solutions
Open communication enhances the relationship you have with your tenants. It also goes a long way to creating a rental leasing strategy that improves rent collection.
Maximize Rent Collection Today
Self-managing your property involves navigating the complex tenant-landlord relationship. This is often difficult, and many landlords find enforcing rent collection strategies difficult.
Luckily, Residential Equity Management can easily find the right tenants, enforce the lease, and offer multiple payment solutions. With over 20 years of experience, we have the best strategies for improving rent collection for commercial and residential properties. Contact us today to schedule a consultation.
