Wise Strategies to Make Renters Pay on Time

making renters pay

All that glitters are not gold, and you may find it true in case of your renters. Well, property management involves many good things as well as some challenging aspects. Just like you would love getting indulged into pleasant talks with your tenants, you will have to fix up all repairs and respond positively to their time to time requests. Well, the most challenging thing about property managers is to strategize their tricks in collecting rents from their renters. Despite, it can be said that it all depends on one’s communication, a presence of mind, understanding and knowledge in making renters pay their rents on time.

As a matter of fact, the majority of property managers fails to develop a good relationship with the tenants, and here they do the biggest mistake of their lives. In fact, some even make the mistake of choosing the wrong tenant for lack of ability to screen. So, what happens is that the managers end up choosing the wrong tenant who initially shows up to be a one with a bunch of promises. Later, they emerge to be the problem-makers whom the managers and landlords find tough to handle.  

Here are a few ways to ensure that you make your renters pay off in time. Take a look:

  • Do proper screening – Proper screening is the right step to choose the right renter. Believe it or not, you cannot go wrong here only if you can initiate the screening process thoroughly. There are a good number of screening tools available through which you will come to know everything about your renter. Be it criminal records, credit or eviction report, you can know everything and will then allow the renter to sign the lease. Also, be aware of those sellers, who, with the intention to hold on to property occupancy, take on anyone they wish. In such cases, you must also be quite knowledgeable about the income of the property as well as the statement of expenses for the past two years.

 

  • Give them a reason to stay happy – One of the best ways to keep your tenants happy and satisfied during their stay is offering them discounts for making early payments. On the other hand, do not step away from including a late fee if they fail to make timely payments. In this way, you can enjoy a couple of advantages. First, it reinforces a positive behavior towards your tenant that will always tend to make them stay longer. Second, it will keep the renters alert of paying extra for being late.  

 

  • Inform the credit bureaus – All your good tenants will not find any excuse but to improve his credit score so that he does not end up failing to make the payment. But those who are regular late payers must realize that things can actually go out of hand if payments are not made timely. So, you can always think of reporting to the credit bureaus about your consistent late payers who are not also willing to work on their payment habits. Once they come to know about this, things might get better on their side.

 

  • Communicate with your tenants regularly – Being a property manager, you need to regularly talk to them, enquire them about any inconvenience, and ask if they need any favor so that you can make your tenants feel that they have someone by their side. In case of payments, you need to similarly take initiatives to ask them about their helplessness in making timely payments. Initiate cool and healthy discussions as to what exactly is obstructing them from accumulating the rent. The sooner you come to know, the sooner they might be able to make the payment. You never know they might had been hesitant to approach you with the fear that you might take legal steps. So, make them feel free and try to solve their problems, if they are feasible.

 

  • Suggest them to make payments in small sections – Sometimes, one may find too difficult to pay rent, if it’s a big one. So, you can always ask them to break the payment in parts and pay accordingly. This will help your renters to make the payment instead of waiting to pay in lump sums.

 

So, keep all these points in mind, choose the good tenants, build good rapports with them and get rents timely.