According to an article posted by NBC4 Washington, as many as 20% of renters aren't paying their rent each month.
Missed rent payments can cause huge issues for property owners, and this is something that you don't want to have to deal with. While rent collection should be fairly straightforward, it can often present various challenges. Through effective rent management, you can ensure you always get your rent payments when you should.
Let's take a look at some key landlord payment strategies that can help you maintain a solid cash flow in Washington, DC.
1. Have Clear and Transparent Lease Agreements
One of the most important things to do when taking on new tenants is to ensure you have a solid lease agreement. All terms should be clear and detailed as this will help prevent any confusion. In terms of rent, your lease should include information on:
- Rent amount
- Due dates
- Acceptable payment methods
- Late fees
- Consequences for non-payment
Make sure your tenants understand all of this before moving in. If you're clear and open about their obligations, it's less likely that there will be any disputes down the line.
2. Offer Multiple Payment Options
You might have a preferred payment method for your tenants, but if you only allow them to pay using your favorite method, it could cause issues. Instead, you should present multiple options.
Some tenants will prefer to pay by cheque, while others might want to pay online instead, for example. The more methods you offer, the more flexibility your residents will have. This will make it less likely that they'll be late with rent due to payment method issues.
Online portals are among the best tenant payment solutions. Your tenants can set up their rent payments to go through automatically every month. It's one of the most streamlined rental processes and your tenants won't have to remember to pay each month, and you should always get your payments on time.
3. Hire a Property Manager
Dealing with rent payment issues can be very challenging, and if you own multiple rental properties the problem only becomes more difficult. Working with a property management company can make things much easier.
A property manager can take care of rent collection for all of your properties, so you won't have to worry about it at all. They'll deal with any issues, even helping with evictions in very bad cases. A property manager can also take on various other responsibilities to help you with your real estate business.
Reliable Rent Collection
In many cases, rent collection can be quite difficult. If any tenants aren't paying rent as they should be, it could cause serious cash flow issues for you. Working with a professional property management company is often the best solution.
PMI National Harbor is a full-service real estate asset management company serving Washington, DC, and the surrounding communities. Using our years of experience and the latest technology, we can tailor our services to meet your exact needs, helping you achieve your investment goals. Take a look at our property management page to find out more about our services.
