Nonpayment of rent is the most common reason for evictions in the US.
When you look for tenants, you screen them using credit checks. These tell you more about an applicant's financial history. If they've got poor credit, it's less likely that they'll pay rent on time every month. Good credit makes it probable that they can reliably pay rent and keep money coming in from your rental.
Most of the burden of rent payments falls on the tenant, but the landlord bears some responsibility as well. In today's post, we'll give you a thorough guide to rent collection in Charlotte, NC. When you make it easy for tenants to pay rent, they'll be able to pay on time, so keep reading and implement rent payment solutions.
Write a Clear Lease Agreement
Having gone through the tenant screening process to find a tenant who can pay rent reliably, the next step is to write up a clear lease agreement. When your lease agreement is confusing and clunky, not only will it baffle your tenants, but it may enable them to pay rent late without consequence.
A strong rental agreement will touch on all of the rules of your property, as well as the consequences of breaking them. When it comes to rental payments, make sure that the lease clearly states how much is due, when it's due, and what you'll do when the payments are late.
Late Fee Policy
Building a policy for how you deal with late rental payments will make it easier to deal with tenants who can't pay. There are many ways to go about a late fee policy depending on the type of landlord you want to be.
For instance, it's never a bad idea to give tenants a few days each month as a grace period. Everyone goes through difficult financial times, so a grace period can provide wiggle room if they're struggling.
At the same time, you mustn't be taken advantage of. Make sure it's clear what happens if your tenant exceeds the grace period. This is usually when you think about the eviction process.
Be Open to Different Rental Income Strategies
It's in every landlord's best interest to accept a variety of rent payment methods and if you don't, this is one of the best rent collection tips we can offer. Different demographics prefer different payment methods, so being open to different ones will help you avoid late payments.
For example, older tenants might prefer to pay cash each month. Younger people prefer contactless payments, making online portals and e-transfers better. Consider each tenant's preference rather than forcing them to do it your way.
Taking Rent Collection Seriously
Rent collection is how you make your money as a Charlotte landlord. If you're having issues securing payments from your tenants, consider hiring property management in Charlotte.
At Wilkinson Property Management, we offer a variety of Charlotte property services, including rent payment solutions. Don't let your collection methods cause you problems. Contact us today and we'll help you develop a successful rental income strategy ASAP.
