Owning rental property in Miami can be a great source of recurring income. But when you spend a lot of time and energy chasing down that income, it might feel like it’s not quite worth it.
Rent collection day can be stressful for some landlords, especially since about 21 percent of renters are behind on rent any given month. Avoiding evictions or sending late rent to debt collections should be the goal of any landlord to maintain cash flow in your business.
Let’s look at some ways to make rent day easier for you and your tenants.
1. MAKE PAYMENTS EASY
While you want to make collecting easy for you, it’s critical to make payments easy on your tenants as well. Automatic payments ensure rent gets paid on time, whether done via ACH, direct deposit, or online bill pay. These ensure rent gets paid first each month while there’s still money to pay with.
If you use management software, you might be able to collect rent online through that system or a rent collection app.
2. FEES AND DISCOUNTS
Consider carrots and sticks as means of motivating tenants to pay on time. This could be a fee for late payments due after a certain number of days. You could also offer a small discount for paying on time or for paying via automated means.
3. HAVE A POLICY AND FOLLOW IT
Having a collection policy spelled out upfront reduces the stress on you when you have to chase down a payment. It gives you something to point to rather than trying to make up rules on the spot.
The policy should be spelled out in writing in the lease. That way, your tenant has already agreed to the late fees, grace period, and other aspects of your policy.
4. GOOD LINES OF COMMUNICATION
Communication starts when you have them sign the lease. That’s when they agree to the rental terms and your collection policy.
Continued communication can prod them to get rent paid on time. This might be text messages to remind them when rent is due, as well as checking in with them when the rent becomes past due or the grace period passes.
When tenants get evasive, it might be time to move on to the consequences outlined in the policy. But keep in mind that the average eviction in Florida takes 15 days and costs about $1,000 if it isn’t contested. If it is, expect it to cost you more in missed rent and attorney’s fees.
5. OUTSOURCE IT
The least stressful way to deal with rent collection is to have someone else take care of it. It’s one of the many jobs of a Miami-based property management company. They do this month-in, month-out so they have the experience to deal with all possible situations and should have various convenient options for collecting payment.
NEED HELP WITH RENT COLLECTION?
With so many rental properties in the Miami area, every month finds many landlords and property owners are making the rounds for rent collection. But the process can be stressful for some and more work than the steady income is worth. Finding ways to take the pressure off can make your investment the boon it should be.
If you need help with managing your property, contact us to learn how we can serve as your rent collection agency or full-service property manager.