Rent is the whole purpose of renting out a property. However, it can also be a very stressful problem for landlords, community association managers, and property management companies when residents fail to make their payments at the correct time. There are three primary ways that can be employed to help tenants make their rent payments in a timely manner, including improving communication, facilitating payments through the use of a property management online payments provider, and offering incentives.
- The Importance of Good Communication
Landlords, community association managers, and property management companies that fail to communicate effectively with residents in their properties often find they don’t receive payments on time. This can lead to chasing down the resident for the money, which is time-consuming and a loss of vital revenue. However, one easy way to reduce this problem is to develop strong communication channels between the landlord and tenant. By issuing regular newsletters or e-mail updates to tenants, it's possible to keep rent payments at the forefront of residents' minds, and by simply inserting regular reminders about upcoming payments, tenants can be gently prompted to pay on time.
- Offering Incentives for Timely Payment
While some property management companies, community association managers, and landlords dislike the idea of offering incentives to tenants for timely payment, in fact even a very small incentive can greatly increase revenue and encourage tenants to have better payment behavior. By offering even a tiny discount on rent in exchange for payment on time, residents can often be motivated to keep on top of their payment schedule, thus saving time and effort on behalf of the landlord. However, the incentives don't always need to be a discount. There are other, more creative, possibilities that can be explored. Gift cards or coupons for local restaurants or attractions, premium parking facilities or upgrades are some of the ideas that have been successful in the past.
- Making It Easy to Pay
Perhaps the most important element in persuading tenants to pay on time is to make paying as easy as possible. A lack of automation is one of the main reasons why residents fail to stick to their payment schedule, and excuses, such as “the check is in the mail,” are still very common. In the 21st century, this no longer needs to be an excuse since landlords, community association managers, and property management companies can use property management online payments services that allow tenants to access the system, 24 hours a day, 7 days a week, via a computer or their phone, to fit their rent payments around their active lifestyle. With no more rushing out to the post office or having to write out a check, residents find it much more convenient to make their payments on time, and because there is a large variety of payment methods available, there is always one to suit everyone’s needs.
As a property owner or manager, it’s surprisingly easy to increase on-time tenant payments. By simply opening better channels of communication, offering small incentives, and choosing the right property management online payments company, such as BillingTree, which can facilitate convenient 24/7 access, it's possible to exponentially improve rent payment outcomes.