If you think that finding a tenant is the most difficult part of being a property owner, then wait until you get to the collection process. Even if somebody is living in your rental property, it’s not a guaranteed source of income yet unless they pay on time. Avoid late payments by doing the following:
Hire Professional Property Managers
Collecting the rent may be your responsibility, but this doesn’t mean that you can’t hire other people to do it for you. Property experts like Syd.mcgees.com.au recommend residential and commercial property managers who can take the load off your shoulders. They can serve as your mediator and adviser, as they’re knowledgeable about the law surrounding property rentals.
Offer Alternative Payment Options
Meeting up may be the most effective way to collect rent, but it can be troublesome. You have to block your schedule to meet or visit your tenants. If you or your tenant is out of town when the payment is due, it can be a major problem. Here are some payment options you can offer:
1. Wireless Transfer – Let your tenants send money online through PayPal, Google Wallet, Western Union, or anything applicable to the both of you.
2. Drop-off Points – If a relative or friend lives nearby, ask them to do you a favour and collect the rent on your behalf. In return, you can give thank you gifts or let them keep a small percentage of the rental fee.
3. Bank Deposit – Let your tenants pay at their own time through bank deposits or payment centres. As such, you don’t have to pick up and deposit the money yourself because it’s immediately in your bank account.
Late rental payments can give you a headache, so make sure you know how to collect effectively. Hire professionals or give your tenants more options to make the process faster and easier.