4 Strategies To Deal With Tenants Whose Rent Checks Are Always Late
Nothing can be more frustrating for a landlord than tenants who always pay their rent a little late. Such behavior can frustrate your efforts, disrupt your cash flow and make it challenging to keep track of your property investment. If you find yourself in this situation, below are a few strategies you can use to try and rectify the issue.
1. Talk to your tenants about the issue
Having a sit-down and discussing the issue with your tenants is always the first and most reasonable approach. By talking with them, you can work out a solution that works for both of you. However, if this conversation does not bear fruit and the tenants continue with late rent payments, it might be time to consider other stricter, more efficient options.
2. Hire a property management company
If dealing with late rent payments proves too much of a hassle, you may consider hiring a property management company. A property management company can handle all aspects of rent collection, from sending out late payment notices to evicting tenants who fail to pay their rent on time. This measure can take the stress and frustration out of the rental process for you.
3. Switch to electronic payments
Switching to electronic payment is another measure you can use to deal with late tenants without the constant stress and frustration. Electronic payment systems can automate the rent collection process and make it easier for you to keep track of payments. Additionally, many electronic payment systems allow tenants to set up automatic payment measures that deduct rent from their bank account on the same day each month.
4. Introduce a late payment policy into your rental agreement.
If late rent payments become a recurring problem despite the above measures, you could introduce a late payment policy into your rental agreement. Such a policy can stipulate that tenants who pay their rent past a specified date will be penalized by being charged a certain fee. This approach can incentivize tenants to pay their rent on time and help you recoup some of the costs associated with late payments.