There’s no doubt that late payments will hurt any owner regardless if they’re just getting started with owning rentals, or they’ve owned them for years.
The truth is that most owners rely on the rent that they receive from their tenants to pay their mortgages so when a tenant is late paying their rent this means that the owner will have to pay their mortgage out of pocket.
What’s the solution to the problem?
Owners must reduce their late payments and getting started with this is easy especially when the steps listed in this article are followed.
How To Reduce Late Payments
Enable Electronic Payments
We’re a big fan of software that allows residents to make payments online, such as many property management software solutions. In this day and age, we’re all busy. Having to physically write a check, track down a stamp, and trek to the post office to mail a payment is a hassle. Some will certainly prefer to make payments that way; but if you want to collect payments on time, leveraging electronic payments will make it easier for you to do so.
Improve Your Resident Screening Process
There will always be one-off cases of residents paying late. However, if you find that multiple residents are making late payments more often than not, it could mean that your tenant screening process is in need of a few tweaks. Be sure that you’re calling landlord references, confirming proof of employment, setting guidelines for minimum income required to lease, etc. This should help to ensure that you’re choosing high-quality residents who can afford to make their payments each month.
Hire a Property Manager
If you’re struggling to collect rent payments and dues, or you simply don’t have the time or energy to track down late payments, consider hiring a property manager. Hiring an experienced property manager can help you to implement a stronger payment system to ensure consistent cash flow moving forward, and can provide valuable expertise on these kinds of situations in the future.
Get Property Management Here
For professional property management contact us today by calling 832-971-1841 or click here to connect with us online.
HOUSTON, TX. – If you’ve owned Houston Rental Property for any length of time you know that things change in the rental market for a variety of reasons.
Your tenants may become unemployed temporarily, roommates may move out, and you may be asked at least once if you will accept a partial rent payment but the BIG question is should you accept a partial rent payment?
Get Everything in Writing
As with any business arrangement when it comes to a partial rent payment you should get everything in writing including the amount of the first partial rent payment and when you expect the remaining balance to be due.
Your written agreement with your tenant should also include late fees that they are expected to pay as well just so they will understand that they are expected to have their rent caught up by a specified date instead of constantly rolling over the money that they are behind on their rent by each month.
If You Don’t Want To Accept Partial Rent Payments
If you’re not open to accepting a partial rent payment from your tenants you should make sure that your lease clearly states that partial rent payments are not accepted just so you can fall back on your lease and follow through with some of the typical penalties for tenants who are late paying their rent including late fees, daily late fees and eviction.
Partial rent payment situations hardly ever work out in the favor of the owner because once the tenant and the owner agree to a partial rent payment arrangement, the tenant may expect the ability to make partial rent payments in the future.
Worse yet, if the property owner or landlord chooses to evict the tenant they may be required by the courts to wait until the same time in the following month after the partial rent payment was collected because some courts will not start the eviction process in the same month that the partial rent payment was collected.
Get Property Management for Your Houston Rental Property