Efficient rent collection is one of the keys to successful rental property ownership. It helps you maintain a steady cash flow and maximize your rental income.
However, collecting rent can turn out to be your worst nightmare. If you have problem tenants who don't honor their rent obligations, chasing them down for payments will become the norm in your life as a landlord. Savvy landlords opt to outsource rent collection to a property management company.
If you're on the fence about outsourcing the task because you don't know how the service provider will help, this article is for you. Read on to learn how these professionals achieve rent collection success.
The Link Between Tenant Screening and Rent Collection
A full-service property management company knows that without comprehensive tenant screening, it cannot guarantee rent collection success. There's a strong link between the two because it's at the screening stage a landlord can identify renters who have the potential to become problem tenants.
So, in many instances, the property management company will recommend that it takes over the tenant screening function as well. They'll dig into a rental applicant's credit history, verify employment income, and check their rental history to establish their suitability for tenancy.
By onboarding high-quality tenants only, rent collection will be a breeze.
Deploy Multiple Rent Collection Methods
Checks and money orders are still the prevalent methods of rent payment, but as digitization takes over, online methods are increasing in popularity. Some of today's popular rent collection apps include:
- Venmo
- Zelle
- Avail
- Rentredi
- Zillow Rental Manager
As a DIY landlord, you might love the simplicity of cash and checks, but tenants want digital payment solutions. Deploying a digital solution can also be a big challenge if you're not internet-savvy.
Property management companies are familiar with these digital payment solutions and already have collection accounts. All they'll need to do is give your tenants their payment address, and voila!
Lease Enforcement
Failing to pay rent as stipulated in the rental lease agreement has consequences. Most landlords charge for late payments, but enforcing it can be easier said than done. Some tenants will only pay the exact rent amount even when it's past the deadline, leaving you with no choice but to chase down the late fee, or even ignore it.
Property management companies don't play around when it comes to lease enforcement. If a tenant is supposed to pay a late fee, they'll take the necessary measures to collect it. Such an aggressive strategy can encourage tenants to pay up on time since they know they won't get away with the extra charge that comes with late rent payments.
Embrace the Brutal Rent Collection Efficiency of a Property Manager
Rent collection is one of the most important landlord duties, and it's no longer as simple as collecting a check from your tenants. It has many complexities, which is why it's wise to leave it to a property management company.
In Chattanooga, TN, PMI Scenic City is the go-to property management firm. As a full-service company, our services include rent collection, property marketing, and tenant screening. PMI's proven franchise program offers cutting-edge tools and support, enabling us to deliver top-tier service to our clients.
Let's chat about your needs.
