What To Do When Tenants Don'T Pay Their Rent
When you rent apartments to tenants, you expect them to pay their rent. After all, you provide space for them to live in exchange for rent. Unfortunately, some tenants don't pay their rent. As a landlord, you can take steps to prevent this problem. You can also take steps to improve your rent collection process. So what is the best thing to do when you encounter this problem? Check out the following tips to learn your options for developing a better strategy.
Find a way to choose better tenants
The best way to avoid this problem is by preventing it. The best way to prevent it is to choose better tenants. If you choose tenants that always pay their bills, you won't have tenants that don't. This probably sounds a lot easier to do than it is, but there is one feature to look for that helps – creditworthiness. Creditworthy tenants pay their bills. They work hard to manage their money and build their credit. Therefore, they'll pay their rent on time, alleviating this problem. You can hire a property manager to help you find tenants like this if you need assistance.
Develop a protocol for late payments
Another step is to develop a protocol for late payments. Do you currently have a system to follow when tenants don't pay their rent? If not, you need one. You need a thorough and effective system for late payments.
Your system should have late payment fees. You should determine when rent is late by setting a rule. For example, you could consider rent late if you haven't received it within five days of the due date. If this happens, you charge a fee. You must set the fee schedule beforehand and give your tenants written notice. Then, you must enforce this system. After all, it will only help if you follow through with it.
Finally, develop an eviction plan. For example, you might start the process once a tenant is 30 days past-due on their rent. Let your tenants know the system, rules, and guidelines, and follow them. Talk to a property management firm if you need help creating a system or collecting rent. They know how to create systems and strategies that work. They'll also be glad to take over the duties for you.
Call a property manager
Property managers handle all duties relating to rental properties. Call a property management company today to learn more about their services.