What do all successful landlords have in common?
They all have an effective rent collection strategy!
At the end of the day, what matters for any landlord is whether the rental income is streaming in. Whether you have one or multiple rental properties, if you're struggling to collect the rent, you're in the same boat as someone who's running a business with poor cash flow.
This brings us to the whole point of this article. What can you do to streamline your rent collection processes for your Des Moines property?
1. Know Your Tenants' Rent Payment Preferences
Most landlords choose rent payment methods solely based on their historical effectiveness. This is why, even in today's digital world, checks, money orders, and cash are still the most dominant rent payment methods.
Just because almost every other landlord is taking cash payments doesn't necessarily mean that's what you should use. Your tenants will use your methods because they have no choice, but if it's not their preferred choice, you'll encounter some inefficiencies.
If your tenants are Gen Zers, for example, you really shouldn't be asking them to pay rent via check or money order. This is a generation that's grown up with the internet and is well-versed with digital payments. In this context, you'll set up yourself for rent collection success if you accept online payment methods.
2. Add Your Rent Payment Policy to the Rental Lease
Picture a world where tenants don't have a deadline to pay rent. Certainly not sustainable.
Yet, if you don't have any defined rent payment policy, that's the world you'll be living in as a landlord. Including the rent policy in the lease agreement ensures your tenants are aware of what you expect of them in terms of paying rent. Include the rent payment date, grace period, late payment fees, and the consequences of defaulting on rent in the agreements.
If rent is due on the first day of the month, you'd expect most of your tenants to have made payment by this date. This will make it easier for you to plan your landlord finances and pay your bills.
3. Outsource Rent Collection
If you have one or two units and high-quality tenants, rent collection is a simple DIY task. However, if you have multiple units or are dealing with delinquent tenants, the task can quickly become your biggest headache.
This is where you need to look into outsourcing the job to a Des Moines property management company. These firms have the expertise and resources to make rent collection a breeze. They know how to deal with problematic tenants and enforce late payment fines.
Collecting Rent Like a Pro!
Rent collection is an important role for any landlord, so you have to get it right. With these tips, you're now in a good position to streamline your processes.
If you'd like to get professional help, PMI Central Iowa has your back. We're a full-service property management company that uses state-of-the-art technology to make rent collection easy. Our office is locally operated, which means we have the experience to navigate the challenges of the Des Moines rental market.
We're only a call away.
