Are you earning less than you should from your Puyallup rental properties?
You're probably not doing enough to maximize rent collection. You may have a low occupancy rate, meaning some of your units are sitting without a tenant for several months. Or perhaps they're fully occupied, but your tenants aren't paying as much as they should.
It's time to focus on increasing your rental collection, but like most DIY landlords, you might not know where to start. Keep reading to learn strategies you can use to collect more rent.
Get High-Quality Tenants
You must have heard horror stories from landlords who had tenants who weren't paying rent and resisting eviction. Unlike having a vacant unit that can be occupied at any time, an occupied unit that's not generating any income can cause you great distress.
You can prevent all that by ensuring you're getting high-quality tenants who're not likely to default on rent. Doing credit checks and verifying income sources puts you in a better position to assess a prospective renter's financial prudence and wellness.
With such tenants, you can bank on earning a steady rental income, which brings stability to your own finances.
Offer Multiple Options for Rent Payments
Cash, checks, and money orders are still popular rent payment methods, but they're not the only methods. The world has fully embraced digitization, and landlords need to do the same.
Accepting online rent payments doesn't just make it more convenient for your tenants to remit their payments. It also goes a long way in helping you maximize your rental income.
A tenant can fail to make timely rent payments because they are not able to use the most convenient option for them. If you only accept cash and checks, for example, how is a tenant who has traveled out of the country for two months going to pay their rent? You'll likely receive the rent late.
Along with offering multiple payment options, consider automatic rent collection. You can invest in an online tenant portal that enables tenants to set up automated rent payments.
Enforce Late Fees Policies
Typically, rent is due on the first of every month. In Washington State, though, as it is in many states, renters have a grace period of five days to settle their balances.
If you don't have a late fee policy or are not keen on enforcing it, don't be surprised to see some of your tenants failing to pay rent on time. Your renters must know that any rent due after the fifth of every month will attract a fine. To avoid these fines, tenants will be keen to make timely rent payments.
Stay on Top of Your Rent Collection
Rent collection is how you get paid as a landlord. To increase your income, however, you need to know how to maximize what you collect. These tips will help you move in the right direction, but what you need the most is professional help.
At SJC Management Group, we are experts in residential property management. Having served Pierce and South King Washington State for over 30 years, we have the experience to make you a successful landlord.
Reach out to us to schedule a free consultation.
