Property Management Solutions for Rent Collection & Late Payments
Collecting rent on time is important for landlords, but it can be difficult to get tenants to pay on time. PhillyLiving Management Group is here to help landlords with all types of services and, most importantly, with all of your collections needs. It’s not uncommon for landlords to encounter delays in rent payments from their tenants, which can lead to significant stress and frustration, particularly when you rely on this income to meet your financial obligations. No need to fret; continue reading to discover three effective approaches for securing on-time rent collection, granting you peace of mind.
1. Screen Your Tenants Rigorously
Properly screening your tenants significantly reduces the chances of encountering late payment issues. Requesting credit checks, seeking references from previous landlords and employers, and conducting thorough assessments will help ensure you select a reliable tenant. If something raises concerns during this process, remember that you are not obligated to accept the tenant.
Having a professional property management company helping you screen tenants will speed up and make sure it is done correctly. Among these things, one of the most effective is the tenant interview. It can help signal whether a tenant will be a good fit or not. Furthermore, an informed tenant tends to be a responsible tenant. They should fully grasp their responsibilities on the property, your expectations of them, and more. Philadelphia is a unique city and region. Having a local company, like PhillyLiving, will be important to ensure it’s done correctly the first time. This interview should occur before the lease is signed and should be your initial extended interaction with the tenant, making it an excellent opportunity to establish a positive rapport. After all, when tenants have a good relationship with their landlord, they are less likely to miss rent payments.
2. Talk to Late Payers
Late rent payments often result from a misalignment between individuals’ payday and the rent due date, rather than an inability to afford the rent. Whether the tenant receives income from government sources, child support, or regular paychecks, the timing mismatch can lead to tardy payments. One effective solution to this problem is to consider adjusting the payment date to better suit these individuals’ income schedules. If you have built a relationship with your tenant and can have a conversation with them to understand their unique situation better, it’s likely you’ll be able to handle any issues that come up regarding late payments easily. Understanding the local area is key as the economy impacts each market. Philadelphia is no different, so having a property management group that is based in Philly will help to know what is happening in the area where your property is located.
3. Charge Late Payment Fees
Rules regarding late payment fees can vary significantly depending on your region. Therefore, it’s important to work with a local property management company that understands the area in which your property is listed. PhillyLiving has helped Philadelphia-based landlords and homeowners for over 30 years. It’s essential to consult a property management group to gain a precise understanding of the specific late fee regulations applicable in your area, as there may be a particular framework in place. Pennsylvania has laws and statutes that protect the tenants and landlords so make sure to review them with your property management group.
When late payment fees are clearly outlined during initial discussions with your tenant and are included in the lease agreement, they can serve as an effective deterrent against late rent payments. However, it’s crucial to keep the following recommendation in mind: while some tenants are genuinely motivated to avoid late payments, as it can disrupt their financial stability, others may respond positively to the prospect of late payment fees. In any case, late payment fees can help offset the expenses associated with late payments. Explaining these costs to tenants can serve as an additional incentive for them to pay their rent on time.
At PhillyLiving Management Group, we can’t stress enough the importance of properly screening renters and building a trusted relationship with anyone who does become a tenant. Of course, it is always wise to have professional procedures and contracts in place when issues arise or when things do not go according to plan.
About PhillyLiving Management Group:
At PhillyLiving Management Group, our mission is to empower and support real estate investors and tenants through education and advocacy, reducing vacancies, optimizing portfolios, and cultivating long-term wealth. We provide clear, thorough, and honest communication with our customers and employees, resulting in peace of mind.
PhillyLiving Management Group is the property management division of PhillyLiving led by Matt Bremner. It is a second generation, family-owned business that began in 1982 when Bob Bremner started managing properties in Washington Square. Today, the company serves homeowners, individual investors, community associations, banks, municipalities, portfolio managers, and national institutions such as Freddie Mac and Fannie Mae. PhillyLiving Management Group has a proven ability to turn around rental investments and solve operational problems. It has grown to 3,000 units under management around the Greater Philadelphia market.
Want to discuss property management services? Contact Matt Bemner at Matt@phillyliving.com.