How to Deal with Late or Unpaid Rent: Rent Collection Advice from the Experts
Rent collection is one of the most important tasks of being a landlord. However, it’s also something that’s easier said than done. Eventually, over the course of time of leasing out your property in Denver, rent collection issues are going to be something that you encounter, whether it’s tenants that consistently fail to pay rent on time or don’t pay rent at all.
Late rent is more than just an irritating nuisance. It also impacts you as a landlord significantly on a financial level. Rental costs not only go towards paying for the mortgage on a property, but also cover other expenses such as maintenance, repairs, and utilities. Additionally, you could risk incurring a late fee from your bank or damaging your credit score.
However, there are many ways to resolve rent collection issues quickly and effectively. By acting calmly and professionally, you can successfully avoid the cycle of late rent payments and obtain rent from your tenants on time.
Tips for Handling Rent Collection Successfully
Here’s some advice on how to successfully handle rent collection from Denver’s premier property management consultants at Peaks to Plains:
- Establish a thorough screening process.
Finding the right tenants can save you a world of trouble when it comes to rent collection. Your screening process should be geared towards finding renters who are likely to pay rent on time. Reviewing a tenant’s past rental history can give you a good idea of what kind of renter they’re likely to be and whether they’ll make payments on time.
- Encourage tenants to pay rent on time.
Perhaps the best way to avoid late rent collection is to give your tenants incentives to pay rent on time. Many landlords choose to add a fee for late rent, and incorporate it into the leasing documents. However, there are legal limits to how much you can charge for late rent, so it’s important to check into the laws that correspond to your state.
- Act quickly but calmly.
Dealing with late or unpaid rent can be extremely stressful, especially if it’s a repeated offense. After all, your own financial well-being is on the line. However, it’s important to deal with rent collection issues in a calm, professional manner. You don’t want to risk damaging a relationship with a good tenant or create a more serious complication that results in a slew of bad online reviews or damage to your property.
You may find it beneficial to schedule a time to meet in-person with your tenant so you can talk to them and understand why they aren’t paying rent on time. In this case, you may be able to work out a payment plan or come to some other agreement. However, if the tenant does not respond, or fails to follow-through with the agreement, you’ll need to serve a Notice of Non-Payment. The eviction process can be long and arduous, and sometimes lasts for several months so acting quickly is crucial.
Get Advice on Rent Collection
Are you experiencing rent collection issues? Our Denver-based property management company can help. Call us today to get advice or receive more information on our services.