Landlords with rental properties in Carefree, Arizona, know just how important it is to collect rent from tenants on time each month. This income is essential to keep up with property maintenance and generate revenue on their investment.
Unfortunately, many landlords come face to face with tenants who are late with their rent payments. Even with thorough tenant screening and being firm with due dates in the lease, these tenants simply cause issues.
So, in the chance you have to deal with a late paying tenant in Carefree, we’ve put together a list of effective methods to ensure your tenants pay rent on time.
1. Have an Honest Conversation
Most people don’t like the idea of confrontation, especially when it comes to money and business. However, when it comes to dealing with late paying tenants, this is the absolute first thing you should do to remedy the situation.
Sometimes an open and honest conversation with your tenant is all you need to do to get them to stop being late with rental payments. Meet with them in person and remember to be calm and respectful during this conversation. If the tenant feels accused of something, you may not get anywhere with them.
Ask them what is going on and how you can help. Maybe they simply need to reschedule the due date by a week or so, depending on their income payment schedule. One simple conversation can fix the entire issue of late paying tenants.
2. Modify Rent Collection Methods
Nowadays there are plenty of different methods to collect rent. Many renters, especially those of the Millennial generation, don’t like writing a check each month and putting it in the mail.
Instead, 57% of renters prefer to make rent payments online rather than with a written check. So, if this traditional method has been your means to collect rent, it may be time to make a change.Again, this is a very easy and quick solution to a major issue and can help with late paying tenants for landlords in Carefree, Arizona.
3. Enforce a Late Fee
When you write the first draft of your property lease agreement, be sure to add a late fee clause in there. You’ll collect this fee if the rent is late after a specific number of days.
For example, if a tenant pays their rent six days after it is due, you may charge a fee of $50. Most landlords do allow a grace period of four or five days in case the tenant is out of town, or any other emergencies take place.
It’s essential to make sure this information is in the original lease, though. You can’t randomly tack on a late fee if your tenant doesn’t pay their rent on time. It must be written and agreed upon prior to the situation.
4. Send a Reminder
Sometimes the end of the month simply creeps up on us without our knowledge. One day you think it’s the second week, and the following day you wake up realizing it’s the last day of the month.
Sending a gentle reminder to your tenants a couple of days before the rent is due can help you collect rent on time. Remember to be kind and use this as a gentle reminder, though. You don’t want to come off as pushy.
5. Contact the Credit Bureau
If the problem of a late paying tenant persists, you may want to go to the credit bureau to report the late payments. This notification could impact your tenant’s credit score.
Before you go to the credit bureau, though, send a notice to tenants who pay late letting them know you plan to do so. If they’ve worked hard to keep their credit score at a good number, they will be quick to send rent on time.
6. Reward On-Time Rent Payments
You don’t always have to resort to negative reinforcements if you want your tenants to pay rent on time. Instead, you can choose positive reinforcements and reward your tenants when they make on-time payments.
If your tenant has been late the last couple of months, let them know that if they pay on time for the next three months that you’ll offer a reward. This could be in the form of one month of discounted rent or paying for one of the utility bills one month. The choice is yours.
Having something to work towards will encourage your tenant to be more prompt with their rent payments.
Collect Rent On Time with Brewer & Stratton Property Management
Are you tired of dealing with late paying tenants in Carefree, Arizona, every month? Then it’s time to let Brewer & Stratton Property Management handle all the hassle so you can finally get truly passive income from your rental property.
We are the best when it comes to property management in Carefree. With our highly skilled and expert team of professionals, we guarantee only the most qualified tenants will live in your rental, thanks to our thorough tenant screening process. Tenants are also more likely to pay on time with our easy rent collection methods.
Never worry about a late paying tenant again when you work with Brewer & Stratton Property Management.
Contact us to see how we can help you collect rent on time in Carefree, Arizona, today!