Rent Collection Whangarei
Collecting rent from tenants should be easy. After all, there are only two steps for a tenant to follow; (1) Know the due date (2) Pay rent on time. Of course life is not that simple.
But for many properties, this is not often the case. There are tenants that can give landlords the runaround, leaving you as the landlord stuck chasing late payments. And if bills pile up for the tenant, you can guarantee from hindsight, they’ll struggle to catch up with payments. As a landlord, that sounds horrible for your bottom line. No landlord has envisioned their property investment to not make money. But rent collecting can be frustrating at times, here are some ways to manage the process and get paid on time.
To secure payment from tenants, these three methods are the most common:
This method says a lot about the tenant you have. That they are comfortable carrying large sums of cash around or they are not fond of banks or using credit. But it may also have something to do with their profession, which they get paid with cash for business transactions and services. With cash payments, the landlord can issue an invoice straight away. But after collecting the rent, the landlord will be stuck with the errand of taking the money to the bank.
In today’s fully-automated world, payments are deducted directly from a tenant’s account. Of course, all the necessary paperwork and bank authorisations have been done during the tenancy agreement signing. This is the easiest way to collect rent on time.
It also has less room for error, no missing denominations and there’s a digital trail to trace the transaction history. With autopay methods, there is no way your tenant will forget about paying rent and the rent collection goes straight to your designated bank account. You will also be able to quickly check whether your payments have been received, and if necessary can then give them a quick call to make the payment.
Some landlords still use the old method of post-dated checks for rent collection. This system will require 12 post-dated checks from the tenant specifically one for each month of the tenancy contract. Here the landlord will need to deposit the checks on the first day of every month where it will clear in a matter of days and the landlord gets the rental payment. This is no longer common and with banks removing cheques from circulation its unlikely to work for you!
Always encourage timely payments by enforcing your rent collection policy and tenancy agreement. This is the only way to ensure regular and timely rental payments. Let your tenants know you mean business especially in the first three months. You want tenants to firmly know you take due dates seriously, and they should as responsible as you will be for the repairs to your home.
So what should tenants keep in mind with their rental payments:
- The amount due per month
- Due date for the rent
- For cash methods, they should know when and where payments are made.
- For bank methods, automated payment methods should be up and ready.
- Penalties, late fees and grace periods
- The consequence of missed payments.
Of course, a tenant may run into some trouble or hard times, but as an industry best practice don’t make it a habit of being lenient about rental payments. Let tenants know directly what services are affected by non-payment and that rental pay delinquency directly affects the state of the property in terms of maintenance and repairs.
Rental collection can simply be stressful for some landlords. Some tenants may even take advantage of their generosity and leniency. If your rental property is creating drama and tears, and you cannot deal with the hassles of collecting rent fees month by month, then consider hiring a reputable property management firm to handle the rental payment collection. Truth is as a property investor your personal time is best spent elsewhere.
Keep your rent collection up to date with RentalsCo. We will take care of your rental property and monthly rent collection for the entirety of the lease. We also handle tenant placement and rental advertisements in Whangarei. Consult with us for our tenancy management services in Whangarei.
Call us at 09 459 7139 or email inquiries at email@example.com.