Landlords in Davenport expect their tenants to pay rent on time. When someone signs a lease, they agree to pay their rent on a certain day of each month in exchange for a place to live. Unfortunately, this isn’t always the case with some tenants.
Some landlords find themselves in predicaments where their tenants break their lease and are consistently late with rent or don’t pay it at all. Oftentimes, their first thought is to start the eviction process, but this is costly and time-consuming.
Instead, use these tips to avoid late-paying tenants in Davenport and prevent it from happening in the first place.
1. Screen All Potential Tenants
The number one way to avoid late-paying tenants in Davenport is to screen all potential tenants before you let them sign a lease. Anyone who is interested in renting the property must submit an application and undergo a credit and background check as well as provide references.
This process allows landlords to understand the applicant’s financial situation and if they can afford to pay the rent each month. The credit check will also give insight as to how much debt the person has and if they make their credit card or loan payments on time.
Asking for references is also extremely important because you can speak to previous landlords and ask if there were any issues with the tenant.
2. Be Clear in the Lease
There is no room for miscommunication when it comes to explaining when rent is due. In the lease, be clear about the date you expect rent to be paid and how you would like it submitted.
You can also allow a grace period of three to five days. This will decrease your chances of receiving late rent, especially if your tenants are away on vacation one month and aren’t home to pay the rent.
When your tenant signs the lease, ask if they understand when rent is due and how they should pay it. Let them know now is the time to ask any questions about it.
3. Offer Electronic Payment Options
When paying rent is convenient for your tenants, you will surely get it on time. Many young people, especially millennials, don’t have checks from their bank since everything can be paid online now. So, offering electronic payment options is more comfortable and convenient for them.
A whopping 56% of renters say that online payments are important to them when renting a property. You can use platforms such as PayPal, Venmo, or Zelle to collect rent online easily.
4. Send a Friendly Reminder
Losing track of time gets the best of us, especially during a busy time of the year, like the holidays. It’s nice to send a friendly reminder a few days before the rent is due to your tenants.
These reminders can be sent via text or email. A phone call is unnecessary. This shouldn’t be used passive-aggressively, but more as a professional courtesy.
5. Enforce Late Fees
Even though you have done all of the above, you may still come across a tenant who is consistently late with their rent. So, to remind them that you won’t stand for late rent, enforce a late fee.
Of course, you need to put this late fee clause in the lease before they move into the property. You can’t simply slap a late fee on your tenant halfway through their term.
A reasonable late fee is between $25 and $75. Remember, you can’t enforce this late fee until after the grace period. Let your tenant know in writing that the late is due via email or a letter.
6. Ask Tenants Why Rent is Late
Sometimes a simple and friendly conversation can solve the issue of late rent. If you notice your tenant who used to pay on time is now late with their rent the last couple of months, ask them what’s going on.
Communication is key in these situations. See what you can do to help them get their rent submitted on time. Whether it’s to send two reminders or break up the rent to be due every two weeks instead of once a month, try to accommodate your tenant.
While this may not sound like your favorite way to solve the issue, it can be effective.
7. Reward On-Time Payments
Positive reinforcement has proven to be more effective than negative reinforcement, such as tacking on a late fee. So, when your tenants consistently pay their rent on time, reward them for this ideal behavior.
Whether it’s a $10 gift card to Starbucks or a discount on one month’s rent, your tenants will surely appreciate the gesture. It will also encourage them to keep up with their on-time payments so they can work towards another reward.
8. Hire a Property Manager
Some things are best left to the professionals. In the case of owning a Davenport rental, hiring a property management company is one of the best decisions a landlord can make. These experienced professionals have the necessary resources to properly screen tenants and collect rent each month.
That isn’t the only thing they do, though. Property managers will fully manage and maintain the rental property, allowing landlords to sit back and enjoy their achievement of passive income.
If a tenant is consistently late with their rent, then the property manager is responsible for chasing them down for the rent. And, if necessary, they will conduct the eviction process, so you don’t have to go through all of the legal paperwork and court hearings.
Get Your Rent on Time with TrustHome Properties
Landlords in Davenport can get their rent on time when they work with TrustHome Properties. As the area’s leading property management company, you can count on having only the highest qualified tenants living in your property.
Plus, our experienced team uses the most professional resources to maintain and manage your property. With TrustHome Properties, you can trust your property is in good hands.
Contact us to see how we can help you find great tenants who will pay rent on time and take care of your property while you earn passive income 24/7!