Around 46% of Americans say they’re struggling with finances; 35% have even resorted to selling items they own, and 31% have borrowed money from family.
Unfortunately, as a landlord, that may make rent collection more difficult for you this year. Neither party enters a contract expecting to have issues with rental payments. However, it’s often an unavoidable part of being a landlord.
Fortunately, you have options if a tenant fails to pay rent. It’s vital that you follow the official and correct procedures for rent collection if you want to get the money you’re owed.
That’s where we can help; this quick guide will tell you exactly what to do to avoid and how to remedy this unfortunate situation.
There are two ways in which you need to be proactive to avoid rental issues: pre-tenancy and ongoing tenancies.
Pre-tenancy, you need to ensure your contract is comprehensive and legally binding. Do not accept a verbal agreement. Our property management services can help provide the best pre-tenancy screening and contracts. Additionally, never accept cash payments - that’s a slippery slope to non-payment.
However, if you’ve found yourself in this situation mid-tenancy, you still need to act fast. Keep a log of any missed rent, put every communication in writing, and talk with your property management agent about the next steps.
Talk to Your Tenant
Next, talk to your tenant about the reason for the late rent. Effective communication could solve all your problems.
They may have a legitimate and acceptable reason for missing the payment. Payments often bounce due to lost or updated debit cards; they may have forgotten or the bank could have rejected the payment.
If they admit they’re having financial difficulties, be empathetic but not too lenient. Make it clear that it’s their responsibility to pay rent and yours to collect rent. Make sure everything is in writing and ensure they know another missed payment won’t be tolerated.
Take Legal Action
Finally, if all your previous efforts don’t pay off, it’s time to take legal action. As the tenant is at fault, you will most likely get your money through this process.
However, it’s long, tedious, and legalese can be challenging to navigate. Again, it’s highly recommended that you hire professional property management services to help with this process.
Additionally, they'll be able to send warnings to the tenant that may prompt them to pay up without the need for official legal action.
Handle Rent Collection the Right Way in 2022
These landlord tips will help you avoid missed payments and have a smoother time with rent collection in 2022. Although most tenants pay up, sometimes they need some extra prompting.
That’s where Blackbird Realty and Management will help. We will manage all your landlord duties for you and ensure missed rent payments are dealt with in a timely and professional manner.
Why not contact us today to discuss your property management needs?