Normally, owners with rental properties have one common problem. This is dealing with late rent payments. In all contracts for such properties, payments for rent are vital in the agreement. Aside from the amount of the rent, the schedule of the payment must be strictly followed by the tenants. In whatever kind of rental property, whether it is residential or commercial, occupants should have enough credibility when it comes to this issue. However, owners know that this problem is also inevitable. No matter how you want to prevent it, there are still negligent tenants who are habitually late in paying the rent.
In business, adverse matters such as this must be counterbalanced. And the best thing you can do is to think of options on how to inhibit it from happening. There are several ways to do it. Here are five suggestions on how to handle your defiant renters.
Remind the residents on their rent beforehand.
Occupants, especially those that are busy and mostly go on out of town trips, do not recall when is the exact due date for the rent. They are too preoccupied with their work and thus personal matters such as these are usually overlooked. As a landlord, you also have to do your part in reminding them maybe 5-10 days before. Do this in a very tactful way. Some of them might get offended. If you have renters that normally are out during their due dates. Tell them before they go or talk to them and make necessary arrangements with the payment. You can ask them if they can leave the payment before going or just pay them as soon as they come back. You also have to be considerate about this situation.
Impose additional fines for late payments.
Although paying rent can already be a burden to the tenants, they will definitely force themselves to pay earlier or not be late if there will still be other charges. This tactic will enable the renters to be prompt in their payments because these fines can be an additional expense. Your contract or lease agreement must include the policy regarding penalties for late rentals. It must clearly state how much will you be charging, whether on a daily basis or a flat rate. Items such as these should be explained to the occupants during the signing of contract to avoid impediments in the long run.
Some renters might be experiencing a financial or personal problem and thus they are not able to meet the due date. In times like these, be understanding and talk to them. Emphasize to them that you will allow such cases only once. If they will still have personal matters in the future, you can not tolerate it anymore and will be imposing fines. payment reminder Remember you have to exercise a fair treatment to all your residents. If you happen to have another similar situation, you have to tell them that this is the first and last chance for them.
In this kind of business issues like these are expected. There are just people who are very stubborn when it comes to rent payments. If you find some of your tenants to be consistent on their past due rents, you can evict them. But before you do that, you must have the necessary documents to support such act. You have a record of their late payments, so as to protect yourself from whatever legal action that your tenants might claim in the future. Normally, these people will be offended and sometimes will file some legal charges. Such documents will help you prove why you have to expel them.
Generally, the ideal thing to do to prevent these late payments is to clearly state in your contract what you consider to be late payment and the possible actions you will take if the agreement is not complied. In this manner, both parties the renter and the owner will have a harmonious relationship along the way.