A common misconception new tenants have of their landlords is that they make all the money off of the rent. However, if you are not collecting your rent properly, you are costing yourself the potential cash you should be getting.
As a landlord, have you ever felt like you might be missing something when collecting rent? You could be making three easily avoidable mistakes without knowing them, which could lead to costly consequences.
Find out what these three mistakes are and how to avoid them so you can ensure you’re always on top of your tenant’s rent payments.
Table of Contents
1. Not Having a Written Lease Agreement
One of the landlords’ biggest mistakes when collecting rent is not having a written lease agreement. This is like a contract between the landlord and tenant that lays out all the important details, like how much rent is due, when it’s due, and what happens if the rent is late.
A written lease agreement is important because it helps prevent misunderstandings and disputes between the landlord and the tenant. For example, if the lease agreement says rent is due on the first of the month, and the tenant thinks it’s due on the fifth, having a written lease agreement eliminates any confusion.
2. Failing to Keep Accurate Records
Another mistake landlords can make when collecting rent is not keeping accurate records. This means that they don’t keep track of when rent was paid, how much was paid, and any late fees or charges that may have been added. Ensure you’re getting paid what you’re owed and not missing any payments.
Secondly, keeping accurate records helps you follow the law. There are fair housing laws that you must abide by, and accurate records can help you show that you’re following these laws if you ever need to prove them. To ensure that you’re following fair housing laws, attend this Yardi voyager training that will ensure you abide by proper property management.
3. Not Being Timely in Collecting Rent
This means that they don’t follow up on late rent payments in a timely manner, or they don’t set a clear due date for rent in the first place. Why is this important? It’s important because if the rent is late, the landlord may run into financial difficulties.
Additionally, not being timely in collecting rent can also damage the relationship between the landlord and tenant. If the tenant is used to paying rent late and the landlord doesn’t follow up, the tenant may not take the rental agreement seriously.
Be Knowledgable and Effective in Collecting Rent
So there you have it- 3 mistakes to avoid when collecting rent. Make sure you have a rental agreement, check your area’s state and federal laws, and be consistent in collecting fees.
By following these steps, you can start collecting rent the right way! Don’t wait- take action now for successful rent collection. Don’t let these mistakes cost you valuable rental income – take action now!
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