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New York State has the fifth-highest rent increase in the country. While increasing rents could signal a greater return on your property investment, it can also present a problem for landlords. High rents can be more challenging for tenants to pay on time consistently.
As the landlord, you can put in place strategies that make collecting rent easier. That way, you can focus on maximizing your rental income.
Establish Clear Payment Terms
Set expectations early on by clearly defining your rental terms. Include them in the lease and go over them with a new tenant. That way, you can reduce confusion that could lead to the tenant not paying their rent on time.
- Monthly rent amount
- Monthly rent due date
- Late penalties
Offer Multiple Payment Options
Give your tenant more than one payment option. By making it easier for tenants to pay their rent, they are more likely to pay on time. Consider the suitable rent collection methods that work for you.
Then, pick the best options to offer to your tenants. Establish which method your tenant will use for the monthly rental payments. That way, you know how you can expect their payments.
Hire a Property Management Company
Working with a rental management company can help you maximize your rental income. From effective tenant screening to monthly rent roll reports, your property manager handles the day-to-day management.
A property management company's many benefits include promptly responding to tenants who do not pay their rent. Depending on the situation, actions could include assessing late fees or filing eviction paperwork.
Automate Rent Collection
Automating rent collection eliminates human error, significantly improving on-time rental payments. Website portals and rent collection apps can provide this service.
Many of these services have tenants connect their bank accounts to the payment portal. Then, on the chosen date of each month, the rent is automatically withdrawn from the tenant's bank account. You can encourage tenants to use this payment process by offering discounts for those who sign up for automatic payments.
Take Swift Action on Late Payments
Do not wait to take action when a tenant is late with their rent payment. While working with a great tenant who struggles for one month can be smart, you don't want it to be an ongoing issue. Impose the late fees outlined in your lease to deter a tenant from making habitual late payments.
If the tenant fails to make their monthly payments, consider evicting them. Many landlords have been forced to turn to this solution. Now that the moratorium has ended in New York state, eviction rates have exceeded pre-pandemic levels in 40 of the 62 counties.
Collecting Rent Made Simple
Landlords can ensure timely rent collection by establishing well-defined payment terms, offering convenient payment methods, and swiftly taking action on late payments. Partnering with a professional property management company can further enhance this process.
At Veno Properties, we pride ourselves on excellence, integrity, and exceptional service in managing rental properties in Stillwater, NY. Our professional and reliable approach to collecting rent is designed to maximize your rental income while maintaining positive tenant relationships.
Enjoy on-time rental payments with the reliable and professional services of Veno Properties.
