How to Prevent Late Payments and Collect Rent On Time

Accounting can be a bit difficult. This is particularly true if you add late payments into the mix. That’s why HOAs, property managers, and landlords are having a hard time doing accounting. It makes it more difficult for you to pay yourself and your vendors if payments do not come in on time.

Because of this, you’ve got to begin collecting payments on time and make it a priority this year. It does not matter whether you are a landlord, a property manager San Mateo, or in an HOA. Here are a couple of tips you can follow:

Allow Electronic Payments and Make Them Automatic

This is the ideal method to collect rent. A lot of landlords are a huge fan of software that enables tenants to make payments online, such as a lot of property management software solutions. People are extremely busy in this day and age. It’s a hassle for them to walk to the post office to mail a payment, track down a stamp, and physically write a check. A couple of them will definitely prefer to make payments this way. However, using electronic payments will make it easier for both you and your tenants if you want to collect payments on time.

Start Collecting Late Fees

A lot of HOA agreements and leases require that late payments will be subject to a late fee. But, a couple of HOAs, property managers, and landlords are merciful whenever it comes to implementing this. You should begin collecting fines and implementing your late fee policy. Late fees may come as a shock to a couple of tenants. However, this might be all you need to get your tenants to pay you on time.

Improve Communication with Late Payers

Directly reach out to that individual if you’ve got a tenant who is regularly late in submitting payments. Try to know if there is something that stops that individual from paying on time. For example, they may not receive the child support payments or paycheck that they utilize to pay the rent until after it is due. You might propose an agreement where that resident pays you on a bit altered timeline compared to others in situations such as these.

Make a Payment Reminder System

Integrate a payment reminder system to guarantee that tenants are wary of upcoming payments. Most landlords like to remind tenants 3 days before a payment is due. That’s the rule of thumb. They also like to remind the day after the payment to remind them that it is already late. There are a lot of tools online that you can utilize to create your own payment reminder system.

Change the Payment Due Date

You should adjust the due date of the payment to at least a week before they are due if you count on particular payments to pay your own bills. This provides you more room in case payments come in late. Obviously, you’ve got to ensure you provide tenants a lot of notice before you implement this.