Fayetteville is the second most lucrative rental housing market in Arkansas, after Little Rock. According to ZipRecruiter, landlords in this city earn about $65,000 annually.
If you're a beginner landlord, you might think that owning a rental property in Fayetteville automatically means you will be smiling to the bank. A lot of work goes into turning a rental property into an income-generating machine. An efficient rent collection strategy is one of the key things.
Keep reading for rent collection tips that'll help streamline your process.
Develop a Rent Payment Policy
When you rent out your investment property, it's on the agreement that the tenant will pay you a certain amount of money, usually at the beginning of every month. However, such an agreement doesn't cover all the bases.
For example, what happens if the tenant doesn't pay the rent on the 1st day of the month? What's the deadline? Are there any consequences of paying after the deadline?
Drawing a comprehensive rent payment policy is key to effective rent collection. When tenants move into your rental, they'll have a clear picture of their financial obligations. Ensure this policy is fleshed out in the rental/lease agreement.
Provide Multiple Rent Payment Options
When you go shopping, you certainly like the convenience of paying with your preferred payment method. If you like paying by card, you don't want someone leaving you with no choice but to pay in cash just because they don't accept card payments.
The same goes for a rental property business. You might like the many benefits of check payments, but what if your tenant has never written a check? They'll be forced to start figuring out how check payments work, which is unnecessary and archaic in today's era of digital payments.
Accepting multiple rent payment options obviously takes some administrative work on your part, but in the long run, the benefits are worth it. Online payments enable renters to pay renters with ease, regardless of where they are in the world.
Get Good Tenants
Delinquent tenants are the biggest threat to a landlord's rent collection efficiency. You can have the best processes for collecting rent, but they would all amount to nothing if you have tenants who are not paying their rent.
You can prevent all that by ensuring you're letting your house to the best tenants. Having a comprehensive tenant screening checklist will help you identify rental applicants who might not be able to afford your rent, or may have trouble keeping up with payments a few months down the road.
If a current tenant becomes delinquent, be proactive. Engage an eviction services provider to ensure a quick and smooth eviction, so that you can bring in a new tenant ASAP.
Maximize Rental Income with Efficient Rent Collection
Rent collection can be a tedious, stressful task, or it can be a breeze. It all depends on the processes you've put in place.
While these tips are helpful, you have yet another tool at your disposal: hiring a property management company. Allred Properties provides the best rent collection services in Fayetteville. We also offer other services, including property marketing, tenant screening, and eviction.
Get in touch with us to learn how we have been satisfying landlords for over 25 years!