Landlords often complain about tenants who are consistently late paying their rent. Many of these people intentionally pay their rent late (perhaps they are waiting on a check to clear, or some major financial disaster occurred, or they want to see what they can get away with), but many people pay late simply because they forget that it’s due. Whatever the cause, there are a number of tips and tricks that landlords can adopt to encourage and/or remind tenants to pay their rent without having to send late notices and that dreaded eviction notice. Read more to learn how.
Lease Software
Many landlords have now turned to online systems for managing their leases. These software programs help landlords keep track of their leasing agreements and payments from tenants. They also provide a way for tenants to log in and see a breakdown of their charges and when their payment is due. Many people prefer to pay their rent online and can set up email alerts for when it is time to submit payment. Real estate lease administration programs significantly help landlords receive on-time payments.
Incentives
If you manage an apartment complex, think about dividing the complex into sections and then providing incentives to the sections whose tenants all submit payments 3 days early (or on time). This could also work for leased houses and townhouses by grouping neighborhoods together. By lumping tenants into groups, they feel more pressure to be accountable to their group. No one wants to be the person who caused everyone to miss out on an ice cream social or pizza pool party. Putting people in groups motivates them to pay their lease on time. Alternatively, you could provide little rewards – such as a piece of candy – whenever someone submits an early payment, which also provides incentive.
Physical Reminders
Whenever a tenant pays late for the second time, consider slipping a reminder under his/her door 5 days before the next payment is due. This note should be short and sweet, and perhaps even written on a colorful notepad to convey a positive tone. Written notes tend to put more pressure on people than verbal communication, which will help ensure on-time payments, but you do not want the tenant to perceive that he/she is being slapped on the wrist. If the tenant pays the rent on time that month, do not submit another physical reminder the following month.
You will be surprised at how successfully these tips result in a higher percentage of on-time payments! Sometimes people just need to be reminded, and sometimes they just need to feel a little pressure to pay.
