Are You Eliminating Tenant Friction?
As a landlord, the most important thing that your tenants will do is pay rent. The easier it is for your tenants to pay rent, the faster and more likely you will get put to the top of the list.
Naturally, hiring a property manager or property management company is your best bet. As a local property management company in Mobile, Alabama we are always streamlining our business to eliminate friction. Online payment portals for tenants, auto drafts, drop boxes and more are all ways we make it easy to get paid your rent. Including electronic deposit into the owners account .But for those, who maybe don't have the margin for a property manager or the luxury read on for more options to increase the likelihood of a prompt payment.
Make It Easy!
Providing efficient options for the way your tenant can pay will increase the likelihood that you will get paid. In my own experience, as someone with a great credit score and who prides himself on being reliable. The bill I pay last in my personal life is the one that is the most inconvenient to pay. It's the one I have to bring in person and can't pay online or drop off. That always seems to be the last check I deliver and sometimes even late.
For convenience find a drop off location for your tenant to be able to drop off rent payments after hours. Have a strong no cash policy. You could even have tenants deposit the money into your account at the bank.
Naturally, if you have a bad tenant they probably won't be in too big of a hurry to pay rent even if you come pick it up and no matter how easy you make it! That's why it is incredibly easy to vet your tenant at the start. We will write another article on proper screening of your tenant. For owners renting their own properties who can't rely on a property management company be sure to contact references. Get two personal references, not only for the reference of the applicants character but also so you will have two other contacts you can reach out to for assistance if you can't find your tenant!
Best of luck and happy renting!