Tenant Collections- What You Need to Know
Tenant Collections – With the season of turnover and tenant changes among us, even no matter how great our tenant was, sometimes tenant collections is needed. When you own rental property, your goal comes down to the amount of rent you collect. It would be nice if you were always paid the rent on time and the check cleared without problems. However, that rarely occurs 100% of the time. Even with careful tenant screening, your tenants can run into unexpected financial situations and your payments are no longer coming in on time or regularly. Your rent collection process should help your cash flow be as regular as possible.
Set the Rent Expectations Early
Real Property Management Salt Lake City has been successful in encouraging successful rent collecting when the process starts with the careful screening of your potential tenants. When you have a vacancy, it is a temptation to rent your home as quickly as possible and not be as careful as you should be with your tenant choices. We are patient and make sure your potential tenant has a high enough credit score and is able to prove an income sufficient enough to be able to pay the rent regularly as well as has sound rental references. An applicant should earn at least three times the amount of the rent for your unit. Then at the time lease signing, we let your tenants know Real Property Management [Franchise Name]’s expectations and policies with regard to rent collection. Good communication from the start makes us strict, but fair, and policies are understood from the beginning of their residency.
Technology Payment Process
A rent collecting process that is technologically based is a secure and convenient way for your tenants to pay their rent. Real Property Management Salt Lake City has an online collection option lessens any rent collection delays. When the rent is collected, this automated system also works for the property owner giving a direct deposit from the collected rent to the owner. Keeping the rent collection process professional and not personal, with understood expectations, gives us the tools for a more successful renting experience.
Automated Collections Process
An aspect of rental property management in Salt Lake City, Utah that is never pleasant is the business of tenant collections when your tenant doesn’t pay the rent. Even the best screened tenants can have a difficult time in their personal lives that affects their abilities to pay rent on time. With an automatic tenant collections process, the moment rent is not collected, automated notices can be sent to the tenant. These notices can be scheduled easily and speak to your tenants with respect. As soon as the law permits, an eviction process can be started with a non-paying tenant so your days without rent can be as few as possible.
Final Accounting Tenant Collections-
The next most likely time you need a process for tenant collections is after they move out. This process actually begins the day they move in. You need to ensure that you have a very detailed lease that clearly communicates expectations at move out. Carpet Cleaning, processional cleaning, and what happens if the tenant causes more damage than their deposit will cover. Regulations have changed as to what fees can be added onto and how they can be added onto if you use a tenant collections agency. Typically those types of agencies charge 40%. Make sure you understand the federal guidelines, and state and local laws to ensure your tenant collections efforts are compliant with regulations. Having a great tenant collections agency to assist you when the tenant owes more than their deposit covers is really important in recovering what is owed to you.
Clear rent policies, upfront expectations, a detailed lease, along with a secure technology platform can reduce the headaches that come with tenant collections! We can help take those over, and give you the freedom to focus on what is important for you and your family! Let us know how we can help relieve some of the stress and put together a management plan that maximizes the return on your rental property!
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