Rent collection is one of the keys to success with owning rental property because, the income from the rental property in many cases covers the landlord's rental property mortgage, insurance, and other costs associated with the property.
Even though it’s vital for every landlord to collect rent on time, the big question is how should landlords deal with tenants who pay their rent late?
In this article, we will answer this question, and provide you with several tips that you can use to get late-paying tenants back on the right track.
Tip #1 – Make Sure the Tenant Hasn’t Paid in Advances
The first thing to do when a tenant is late paying rent is to review their account and verify that they didn’t pay in advance because, in some cases, a tenant could choose to pay in advance especially if they are going to be out of town when rent is due.
Tip #2 – Is There a Grace Period?
Next, check the tenant's lease to verify if they are within their grace period because the rent isn’t technically late if the tenant has been told that they have as late as the 5th of the month to pay their rent.
Tip #3 – Send A Late Rent Notice
After the expiration of the grace period, the tenant should be sent a late notice that their rent is due, and they’ve incurred late fees for being late.
Although most landlords will mail this notice, in today’s world it’s best to send the tenant a text message as well because, everyone has a phone with them these days, and most people respond quicker to text messages compared to letters that come in the mail.
Tip #4 – Contact the Tenant
Let’s say that the tenant hasn’t responded after they’ve been contacted about being late, in this case, it’s best to contact them directly either by going to the property, calling, or texting them again.
This step is essential because sometimes a personal touch is needed to show them the seriousness of their situation and get them back on track with paying their rent.
Tip #5 – Issue A Pay or Quit Notice
Last of all, but most important, if the tenant still hasn’t paid their rent, they should be issued a pay or quit notice.
This notice should also be clear about the money that the tenant owes, including any late fees, plus the landlord’s intent to evict, if they don’t pay.
Contact GoldenWest Management
At GoldenWest Management, we save owners the time, money, and hassle of rent collection and property management.
To learn more about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.
