Most landlords and property management companies will experience rental payment issues at some stage and likely on more than one occasion. Despite performing various checks to ensure the right tenant moves into a property, late rent payments can occur, which can pose a threat to a landlord’s finances and cause property arrears. If you are tired of chasing or evicting residents, there are various steps you can take to encourage them to pay their rent on time and in full. Find out how landlords can improve rent payment reliability.
Regularly Listen to Your Residents
If you don’t listen to residents’ grievances or respond to issues, they might not feel an urgency to pay their rent on schedule or could withhold payment until a specific problem is resolved. Rather than allowing their dissatisfaction to grow, you can nip an issue in the bud early by listening to your tenants and responding appropriately to their needs.
For instance, use resident satisfaction survey software from Opiniion to gather feedback from residents, as the insights could help you discover where you are going right and wrong.
It is a great way to pinpoint your strengths while identifying various issues that could lead to late payments and poor reviews. Plus, you can simplify the process by sending recurring or automated surveys to routinely receive valuable feedback from residents.
Establish Clear Rent Terms
Landlords and property management companies must establish clear rent terms before handing over the keys to a resident. It should provide a clear understanding of what is expected of them and the consequences of failing to adhere to the strict rules in place.
For example, you must outline:
- The exact date for a rental payment
- The accepted payment methods – encourage residents to set up automated payments
- Any late payment fees or penalties they will receive for a missed payment
A clear, upfront policy can prevent confusion while proving you take late payments seriously, ensuring residents pay the amount in full and on time.
Improve Communications
Many landlords and property management companies make the mistake of distancing themselves from residents. However, they are more likely to miss a payment if they feel they cannot talk to their landlord or a property manager when experiencing financial difficulties.
For this reason, it is important to maintain open communication with residents, as they are more likely to reach out if they are struggling with a property issue or are worried they cannot pay their rent on time this month.
A quick, friendly chat could help a tenant overcome a financial hurdle, as you could arrange for partial payment or a payment plan to recover your finances while helping them get back on their feet. Doing so could protect your investment while earning a tenant’s respect, trust, and loyalty, meaning they are more likely to pay their rent on schedule throughout the years.
Create an open-door policy by encouraging residents to reach out via text, phone, email, or a specific platform when they have an issue.
