Do you own a rental property?

If so, then you understand that dealing with the day-to-day operation of keeping everything running efficiently can be stressful. This is especially true when you have problems collecting rental payments from tenants.

Keep in mind that you won't stay profitable if tenants don't pay when their rent is due. So what's the best way to handle this uncomfortable situation? This article can help. Here we take a look at landlord tips for how to collect rent when tenants fall behind on what they owe. Keep reading to learn more.

It Starts With Good Tenant Screening

Let's be honest, the best way to ensure that you're able to collect rent from your tenants each month is to make sure you are only renting to quality people.

This means learning how to vet potential tenants to prevent running into problems down the line. Screening is an essential part of rental property management and can save you from a million headaches.

The key is to always run a credit check on each potential tenant, make sure they are employed, and that they have a history of paying their bills on time. It's also important to check for past evictions and criminal history.

Set Up Automatic Rent Payments

The next way to reduce the possibility of unpaid rent is to have each tenant set up automatic rent payments so they won't forget. This can be done with direct deposit or you can provide an online bill pay tool for recurring payments through their bank account.

It's also wise to hire a property management company with the resources and experience to ensure that every tenant pays on time.

Collecting Unpaid Rent

Now let's discuss your options for collecting rent when a tenant has fallen behind on monthly payments.

Good communication often goes a long way. This means being very clean with each tenant about exactly what is expected from them, as well as letting them know what will happen when rent is late.

Once rent is late, send past due rent notices at regular intervals reminding them to catch up on their unpaid rent. You should also warn them that the account is in danger of being sent to a rent collection agency.

Hire a Collection Agency

Using a third-party collection agency to collect back rent from tenants is the best way to simplify the process. These are professionals who understand how to enforce your rental agreement quickly and efficiently so that you can focus on more important matters.

A Landlord's Guide to Collecting Back Rent

It's no secret that owning rental property is a great way to build wealth for retirement. But it's also a lot of work, especially when it comes to making sure that your tenants pay on time each month. Fortunately, this guide to collecting back rent will help ensure that your investment remains as profitable as possible.

Please contact us today to learn how a property management company can help get the most value from your rental units