Landlords evict around 3.7 million tenants every year. Eviction is the last resort a landlord takes when a tenant won't pay their rent, but it's a legal tool that they must use at times.
Tenants agree to pay you a monthly rate for the apartments you rent them. But unfortunately, some might not pay their rent.
Do you have trouble with rent collection? What can you do to improve your rent collection process?
You can learn more about this by reading this guide.
Develop Rent Collection Policies
Many landlords develop rent collection policies before they experience problems with rent collection. Having a solid, clear policy in place can help you in several ways.
First, it guides you to the steps you can use to collect rent from your tenants when they fail to pay on time. Secondly, you can give your tenants a copy of the policy, so they know what to expect.
If you need help creating an effective policy, you can read through landlord tips. Additionally, you can also contact a property management firm or lawyer for guidance.
Your policy should include several things:
- Rental due date
- Number of days before you assess a late fee
- Late fee amount
- Policy for tenants who don't pay their rent
These are the most critical things to include in your rent collection policy.
Enforce Your Rent Collection Policies
The second thing you can do to improve your rent collection efforts is enforcing your policies. Creating rent collection policies won't help if you don't enforce them.
Therefore, make sure every tenant knows your policies for missing rent. Secondly, you must enforce the policies you created.
For example, if a tenant needs to pay rent but doesn't, you should assess a late fee if they don't pay by the grace period. When your tenants see that you enforce these policies, they might be more inclined to pay on time.
Follow the Legal Rules for Late Rent
Finally, you must follow the law when dealing with late rent. The law doesn't let you evict a person for an improper reason or without giving notice.
Therefore, you might want to issue a late rent notice once a tenant's rent is late. When issuing this letter, you can remind the tenant to pay their rent and the late fee.
If you encounter times when tenants still don't pay their rent on time, you can begin the eviction process. Again, you must follow the laws in Pennsylvania when evicting a person.
This process requires time and money, so you should only use it if necessary.
Hire a Property Management Firm for Help
If you experience trouble with your rent collection process, you might benefit from hiring a property management firm. After hiring a firm for help, they'll take over the collection process and use effective methods that might help.
Are you interested in learning more about our services? If so, contact us at HomeRiver Group. We can answer your questions and offer a quote for services.