Around seven in ten rental properties are owned by individuals. These individuals usually just own one or two properties, so when a tenant fails to pay rent on time, it can cause them a lot of difficulty.
If you want to have the best time as a landlord, you need to ensure rent collection is smooth and easy. Streamlining the collection process will help you improve cash flow and handle any expenses that come up.
Here are 5 steps you can take to streamline the collection process in Oregon.
1. Improve Communication
One of the best ways to streamline rent collection is to communicate well with your tenants. Be sure to set clear terms with your tenants on your lease agreement and emphasize the importance of paying rent on time when speaking with them.
Send payment reminders ahead of a tenant's due date to make it more likely that they'll pay on time.
2. Accept More Payment Types
The easier you can make it for a tenant to pay rent, the more likely it is that they'll pay on time. Consider offering multiple payment options so that your tenants can pay in the way that's most convenient for them.
Allowing check payments, credit card payments, and electronic transfers or allowing tenants to use apps such as Venmo to make payments can be helpful for streamlining the payment process.
3. Launch an Online Portal
Launching an online portal can also improve rent collection and can be a great way to make paying rent easy for your tenants.
An online payment portal allows tenants to easily pay their rent from the comfort of their own homes without needing to mail a check or speak to you directly. They'll simply need to log on to the portal with their computer or smartphone to pay.
4. Automate the Process
One of the great things about using online portals for rental management is that they can help automate the process.
Using automated tools to send payment reminders or accept payments on a schedule can help you get paid on time. These automated processes can help to save you and your tenant time and effort and ensure that payments don't slip their mind.
5. Implement Late Fees
Adding grace periods and late fees can also help you facilitate rental payments and get paid promptly. Consider setting a reasonable late fee and be sure that you stick to it when a tenant is late on their rent, particularly if it's a consistent issue.
On the flip side, consider incentivizing tenants for on-time payments as well. Giving a tenant a small gift card for paying on time for six months in a row, for example, could be an option. You might also want to consider offering a two to three percent discount on rent if they pay early.
Improving Rent Collection
To improve rent collection as a landlord, consider using the above tips and techniques. Adding more payment options, improving communication, and making use of an online portal can all be beneficial.
PMI Central Oregon is locally owned and independently operated. We're part of a larger franchise that has been improving the property management industry for more than 20 years.
Looking for a property management company in Bend, Oregon? Get in touch with us today to learn how we can help.