What Can Landlords Do About Late Rent Payment?
Did you know that U.S. households are almost $20 Billion in debt just being behind on rent?
When you own rental properties, accepting only cash and checks can take away some security and safety for you as the landlord.
Have you ever received late rent payments from your tenants? If so, then you know that cash payments can be a double-edged sword. On one side, you can more liberally accept payments from your tenants.
On the other side, you get to keep more of your profit if you stick with the cash method. Either way, though, the most important thing is that your tenants pay you their monthly rent on time.
If you’re wondering though, “what can landlords do about late rent payment?”, then read on because we have the solutions you’re looking for.
Set Clear Expectations From the Start
When your tenants move in, let them know when rent is due and what the consequences are for paying rent late. If they know they’ll be charged a late fee or be at risk of eviction, they’re more likely to pay on time.
Offer A Rent Grace Period
If you can afford to be flexible, offer your tenants a rent grace period for a few days. This will give them some wiggle room if they’re running late on rent. Just be sure to clearly communicate when the grace period ends.
Late Rent Fees
There are a few things that landlords can do when it comes to tenants who are late on their rent payments. Include in your lease agreement to charge a late fee, which is often a percentage of the rent amount.
Offer a Discount for Early Payment
If you want to incentivize your tenants to pay early, offer them a discount. For example, you could offer to waive the late fee if they pay their rent within the first five days of the month.
Accept Electronic Payments
Nowadays, tenants expect to be able to pay their rent online. If you haven’t already, set up an online payment system. Not only will this make it easier for your tenants to pay, but it will also help you keep track of payments.
Stay On Top of Late Payments
If a tenant is late on their rent, don’t let it slide. Contact them right away and let them know they need to catch up. The sooner you address the problem, the better chance you have of getting the rent you’re owed.
If you are looking for help in lease management and rental collection, check in this area for more details.
Get An Eviction Protection For Late Rent Payment
If you are a landlord and your tenant is late on rent, you have a few options. You can give them a reasonable rent grace periods to pay, work out a late rent payment plan, or evict them.
If you decide to evict them, you will need to go through the proper legal channels. Evicting a tenant is the last resort and should only be done if all other options have failed.
Find this post helpful? Check out the rest of our blog for more valuable great resources and content.