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A Simple Landlord's Guide to Rent Collection

A Simple Landlord's Guide to Rent Collection

Did you know that the biggest reason for tenant eviction is not paying rent?

As a landlord, the last thing you want is to have to evict your tenants. It's a lot of hassle and can leave bad feelings, which you definitely don't want.

But, how do you make sure your tenants pay on time? While there's no way to make sure they do for certain, there are some tips to make rent collection simpler for your tenants and more reliable for you.

Read on to find out more.

How to Conduct Rent Collection

When it comes to ensuring your tenants in Orlando pay rent, there are several ways to collect money. Let's take a look at a few of the most popular.

Collecting Rent in Person

One of the best ways to prevent late rent is by collecting it yourself. This is a bit of an old-fashioned method and not the easiest for the landlord, but it is steadfast. It's much harder for a tenant to avoid the topic if you're at their door!

Setting Up Direct Debits

The most common method of paying rent these days is online. You can ask your tenants to set up a direct debit through their bank account, which will automatically send their monthly rent payments. This is a reliable and effective method and easy for both parties.

Payments in a Lockbox

If you'd prefer to receive cash or a cheque in person but aren't sure you'll be able to do that at the same time every month, a lockbox is a great solution. This is a safe, locked box for which you and the tenant both have a key or code. They can leave the money in the box every month, and you can pick it up when you're ready.

How to Deal With Missing Rent

Thorough tenant screenings can help you avoid the issue of missed payments. Even so, you may find tenants haven't paid their month's rent to live inside your investment property. In this case, you need to take action.

The first step should be to talk to the tenants through whatever platform you use to ensure everything is okay and whether it's a simple mistake. If something seems wrong and you use a third party, like a property management company in Orlando, contact them to see what action to take next.

Also, don't forget to take security deposits! This can cover you in the case of missed rent if your tenants have to be evicted.

When Should You Collect Rent?

When you collect rent is entirely up to you and the tenant to deal with. Some landlords will take their payment on the first day the tenant moves in and continue on that day every month. Others may choose a date together, such as the 1st or 15th of the month.

Seek Advice From Verandah Properties

If you're sorting out rent collection for the first time, you may be a little nervous. You don't want to discourage your tenants, but you also don't want to set yourself up for mixed payments.

If you need more advice or support, contact our property managers in Orlando, Florida. We're more than happy to help!