Washington has the fifth highest rental costs when compared to wages in the nation, making timely rent collection more critical than ever for landlords. Effective rent collection is essential to maintaining your cash flow and avoiding common pitfalls that can lead to losses.
Landlords can ensure consistent payment while minimizing the hassle by enforcing late fees and using efficient rent collection software. Implement these landlord tips today to improve your rent collection process and safeguard your financial stability.
Lay Out Clear Terms
Before your tenant moves in, tell them the terms of your lease in clear, simple terms. Make sure they understand what is expected of them. That way, there are no surprises when you expect them to pay rent later.
It can help to go over the lease terms with the tenant. Confirm the amount they will pay and when it is due.
Enforce Late Fees
If tenants fail to pay their rent by the due date, enforce late fees. When tenants realize that you enforce late fees, causing them to pay more, they are less likely to be late again.
However, you can only do this if your lease lists the late fees. Washington landlord/tenant law RCW 19.150.150 only allows landlords to charge late fees when written into the rental agreement.
Efficient Rent Collection Software
Using rental collection software streamlines the rent collection process. First, you can offer multiple payment options for the tenant. As the landlord, you can have all payment methods go to the same account, making collection easier.
Consider tenant payment systems that have a suite of features to help you.
- Automated reminders
- Automated payments
- Multiple payment options
- Payment reporting
Hire a Property Management Company
Let the professionals handle your rent collection activities. Instead of following up with tenants yourself, a property manager can do the work for you. This is one of many services that make owning rental property easier.
Many property managers already have tenant portals, automated payment processes, and scheduled reminders.
Legal Action as a Last Resort
Life happens, and even the best tenant may pay their rent late once. You may give a great tenant a pass for a single late payment. However, if a tenant consistently fails to pay their rent, you may need to take more serious action.
Your lease agreement should have eviction terms outlined. That way, you can protect your rental if the tenant fails to pay it. Often, tenants are more likely to pay their rent when they know you are serious about following through with eviction.
Use These Rent Collection Strategies
These tips will help you improve your rent collection. Start by using rent collection software. Then, enforce your late fee policies to discourage late payments. Finally, if all else fails, consider legal action.
Crown Property Management in Kennewick, WA, specializes in providing property management services that simplify landlords' rental experience. Their team uses the latest technology to offer automated payments and detailed financial reporting.
Contact us now to learn more and keep your rental business running smoothly when we collect rent for you.
