Even after the pandemic, life for tenants keeps getting harder. In 2022, 22.4 million renters in the U.S. were spending over 30% of their income on rent, according to a U.S. News report.
As a landlord, this state of affairs can obviously impact your bottom line. That said, rental payment issues don't happen in a vacuum. If you play your cards right, your rent collection process can be surprisingly consistent.
Tired of constantly chasing your tenants for rent in Reno, NV? Here are some tips that will help you avoid this all-too-common scenario!
Screen Tenants Thoroughly
The best way to improve rent collection is to have a solid tenant screening process. This makes it easier to identify people who are likely to miss rent payments, either because they can't afford them or don't want to.
During the screening process, focus on the applicant's credit and income history. Look for red flags like low credit scores and missed payments. If their references seem too good to be true, be sure to check them.
Craft a Strong Lease Agreement
In property management, rent collection often comes down to your lease agreement. The lease should clearly outline your tenant's responsibilities. The more details you include, the easier it is to enforce rules for late payments.
Among other things, your lease agreement should specify:
- When rent is due
- The exact amount of rent
- The payment methods you accept
- How not paying rent can lead to an eviction
Track Your Rent Records
One of the best collecting rent tips we can give you is to track everything. Staying on top of your rental payments will keep your cash flow in check. This is particularly important if you need to accept partial payments.
If you have a single Reno property, you can stay organized with a single spreadsheet. With several properties, it's better to rely on rental software. These tools can automatically generate up-to-date, accurate records.
Have a Clear Late Fee Policy
Most rent collection methods rely on having a late fee policy. According to Nevada rental laws, these fees can't exceed 5% of the rent. However, you can introduce several different fee structures, such as:
- A flat fee equal to 5% of the rent
- A flat fee in the range of $30-$100
- A fee of $20 that rises to $80 if the rent is late
You'll also want to consider grace periods. In Nevada, you must wait three days after the due date to charge late fees.
Set up Automatic Payments
Letting tenants pay rent online can do wonders for their punctuality. A quick tip: use rent payment solutions that enable automatic payments. This way, your tenants can use their preferred payment methods on their own.
Automatic payments also make things easy for you. Instead of waiting for a check to clear or going to the bank, you'll get your money in a few days. You can also set up automatic rental reminders to ensure timely payments.
Need Help With Rent Collection?
The bottom line: collecting rent is a complex task with many moving parts. That said, this guide will help you get a firmer grasp on it!
Looking to outsource rent collection for your Reno property? At Dickson Realty, we make rent payments easy with an online portal that's accessible 24/7. Contact us right here for a free consultation!
