Collecting rent on time every month is a major part of your investment strategy. When you have tenants who pay late or who are unreliable, it causes financial stress and frustrations.
The best way to avoid late rental payments is to screen your tenants well. Make sure they earn enough money to meet their rental obligations and check their rental history so you know whether they have a history of paying rent late.
A consistent and enforceable rent collection policy also helps. Today, we’re talking about most effective way to collect rent for your rental property.
Establishing a Rental Collection Policy
Make sure your tenants understand your expectations when it comes to rent collection. In your lease, you should be clear about how much rent is due, when it is due, and what the consequences will be if it’s paid late. You should reference whether there are any grace period days, and you should also list the many different ways that tenants can pay. Maybe you’ll accept checks or credit cards or online payments. We believe online rental payments are the most effective way to collect rent from your tenants.
Using Online Tenant Portals
California state law requires owners to provide a mailing address to their tenants so that they can mail any rent checks or documents to them. That’s one way to collect rent. You can wait and hope that the check arrives in the mail on time. And, if it’s a few days late and you call the tenant to follow up, that tenant can tell you that the check is in the mail, but you don’t really have any way to document that it has, in fact, been sent.
The easiest way is to allow tenants to pay their rent online. Here at Civitas Property Management, we offer our tenants and clients an online portal. This is a place you can go to make a rent payment, make a contribution, or view and print your lease or other documents. You can also print or view a tenant ledger showing all charges and credits for that unit.
Online rental payments are efficient and secure. This is the easiest way to have everything documented and accounted for. There are no checks to lose in the mail, no postage to worry about, and tenants can make their payments from any computer or mobile device and at any hour of the day or night.
If a tenant or an owner has any questions, they can send us a quick email through the portal, and we can look at their ledger and answer those questions. Maintenance requests can also be submitted through this portal.
We know that individual landlords managing their own properties don’t always have access to the software and the technology that professional management companies can access. We’d love to be your resource for these types of tools and advantages.
If you have any questions or you’d like some help collecting rent online, please contact us at Civitas Property Management.