Landlords in Los Angeles, California make over $95,000 a year. Of course, it can take a while to begin making this kind of money when you're new. This is especially true if your tenants are late on their rent every month or neglect to pay at all.
When collecting rent from tenants, it's important to be 100% transparent about your policy. Screen every resident before handing them a set of keys, and be sure to enforce late fees.
These are just a few rent collection tips to keep in mind. Check out this guide to learn more.
Be Clear About Your Rental Policy
Your rental policy should be highlighted and bolded in the tenant's lease agreement. There needs to be no confusion when it comes to the payment due date.
The lease should also mention any fees that you'll tack on once the tenant is late.
Allow for Plenty of Payment Options
Every tenant is different. Some will want to pay their rent with a check or money order. Others would rather submit their payment online and be done with it.
That's why it's important to provide tenants with plenty of payment options. Have a drop box handy for those who pay with a check every month. This way, they only have to slip their payment in and be on their way.
Your online portal should allow tenants to set up automatic payments so their rent comes out of their bank account at the same time each month. It's convenient for them, and it ensures speedy payments for you.
Screen Your Tenants
Screen every single tenant before you give them a set of keys. This will allow you to check their criminal background and credit history.
If an applicant has been evicted from three different properties, it will show up on their background check. Furthermore, you should ask tenants about their sources of income to verify their ability to pay their rent.
Send Out Collection Reminders
Many tenants in Los Angeles, California don't neglect to pay their rent out of maliciousness. Sometimes, they simply forget.
That's why it's important to send out collection reminders. This is where online apps and portals come in handy. You can use them to let tenants know when their rent is about to be late.
Enforce Late Fees
It's not enough to highlight the late fees in your tenant's lease agreement. You have to enforce them. It will motivate them to make their payments on time every month.
Again, make sure that the tenant understands the terms of the late fees when they're signing their lease to avoid anger and confusion.
Essential Tips for Effective Rent Collection
Landlords in Los Angeles have the potential to earn a lot of money if they find the right tenants to occupy their properties. Screening potential residents is a crucial part of the rent collection process.
On top of screening candidates, you also have to send out rent reminders, give tenants several ways to pay, and enforce late fees.
It can be a lot to do on top of your regular landlord duties. Let Los Angeles Property Management help. Go here to learn more about our services and schedule a consultation.