Rent collection is one of those activities that brings joy to landlords. It's time to harvest and enjoy the returns of your investment.
Unfortunately, it can also turn out to be a landlord's worst nightmare. If you have to chase down your tenants to pay rent every month, you'll quickly start regretting why you invested in Puerto Rico's residential real estate.
Rent collection needn't be a hassle. There are strategies you can use to make the exercise as smooth and efficient as possible.
Come with us as we flesh out a few effective ways to collect your rental income without breaking any sweat.
1. Find Reliable Tenants
This is where smooth rent collection starts. When you have good tenants, you won't need to keep reminding them to make their rental payment every other time. And if such a tenant cannot make the rent on time, you can count on them to communicate in advance and tell you when they'll be able to pay.
You're not going to get reliable tenants if you have an open-door policy. Not every renter deserves to be your tenant. The only way to keep problem tenants away from your rental is to invest in comprehensive tenant screening.
2. Automate Rent Collection
Automation is revolutionizing many industries. Rental real estate isn't getting left behind, at least as far as rental collection is concerned.
Gone are the days when tenants had to visit banking halls and make cash transfers to the landlord's account or to the postal office to mail a check. These days, tenants can pay their rent even when they're on the other side of the wide, all with a few taps on their smartphones.
Rent payment automation doesn't just happen, though. The landlord has to enable it.
This can be as simple as setting up collection accounts on digital payment platforms like PayPal. It can also mean investing resources into the development of a tenant portal or app with in-built rent payment tools.
3. Set a Detailed Rent Payment Policy
Most landlords require tenants to pay their rent by the first day of every new month but often give a grace period of five days. This is an example of a rent payment policy, and it's usually effective.
However, it's important to go further and include late fee penalties and other details you might find necessary. When your rent payment policy is clearly spelled out, tenants have no excuse to deviate from it.
Ensure this policy is in the rental agreement so that new tenants know what's required of them before they sign it.
Rent Collection Shouldn't Give Your Sleepless Nights
Rent collection is an integral part of being a rental property owner. It can be a time-consuming task that gives you stress or a smooth task that makes your life as a landlord enjoyable. It all depends on how you approach it.
With this guide, you now have a couple of effective strategies to make collecting rent easier. But for the absolute best experience, hire a property management company.
Based in San Juan, PMI Puerto Rico is a full-service residential and commercial property management company. We make investing in real estate manageable and profitable.
Contact our team for more information on our services.
