California Mortgage Lender

Posts Tagged ‘homes’

If you own a rental property, then there will come a time when a tenant does not pay you on time.  You may hope it never happens, but it is inevitable.  I find real estate investors are too soft on rent collection.  Most people don’t like confrontation and rent collection is about getting your way (ie:  having the tenant pay the rent they owe).

Some of the most important tricks to collecting rent is being both consistent and immediate about your actions.  Here are some more quick tips:

1. Call the tenant immediately the day after the rent was due.  The tenants will see that you are serious about the rent and they may even be expecting your call.  Many newer Saint Paul Real Estate investors fail this step.
2. If you call and are unable to get the on the phone after several attempts (this should be within the first 24 hours after the rent was due), drive over to the property.  If you have your game face on, it is difficult for the tenant to ignore you when the landlord is standing at the door at 7pm at night.
3. Never waive the late fee, ever.  This simply rewards bad behavior.  Impose it immediately when the rent is late.
4. Mail statements to all tenants that owe anything over $5.  Get them in the mail or hand deliver them the day after the rent was due.
5. If the tenant sends you only part of the rent, call immediately to find out when the rest of the rent is going to be paid.  Explain to them that they still incur the late fee and send a statement with their updated balance.
6. When there is ever a discussion about when the rent will be paid or a balance due, push the tenant (while remaining respectful) to pay a little more or a little sooner.  Many times the tenant is just trying to stall.
7. When the tenant makes a commitment to pay you the balance by a certain day, call them a day or two in advance to remind them about the payment.  Make sure to tell them how much you are expecting and when.
8. If the tenant does not pay or does not live up to the commitments they have made to you, start the eviction immediately.  Most landlords make the mistake or taking excuse after excuse and only file the eviction notice after 30+ days of the rent being late.  Now you have lost 2 months!

Rent collection is the key to being a successful landlord.  You need this rent/income to keep your business solvent.