Evictions in Oklahoma skyrocketed in the first half of 2022. In fact, they broke all the records in the state's history.
Evicting a tenant costs you money. It's also stressful, yet it happens most commonly when tenants don't pay their rent.
As a landlord, one of your top focuses should be improving your rent collection efforts. Not only will this help you avoid evicting people, but it also helps you increase your rental revenue.
Check out the following strategies that can help you improve your rent collection efforts.
Make the Rules Clear
Screening your applicants thoroughly is always the best place to start when you manage rental properties. This yields better tenants. When you choose a tenant, give them a list of the rent collection rules.
In your rent collection policy, outline:
- The due date of the rent
- The amount they must pay
- When rent becomes late
- The late payment amount and policy
- Methods they can use to pay their rent
- Eviction policy and procedures
Setting clear rules and expectations eliminates misunderstandings. It also gives you ground to stand on when tenants pay their rent late.
Enforce the Rules
The rent collection process works well when tenants pay on time. But you'll always have some that don't. One of the best tactics to use is late-payment enforcement.
This means that you charge a late fee when a tenant pays late. While you might waive this fee occasionally, aim to stick to it.
Most people prefer to avoid accumulating extra fees. If they know you'll require the late fee, it might encourage them to pay on time.
Offer Automated Options
You can collect rent in many ways. For example, some landlords offer a drop box the tenants use for their rent payments. Others provide a mailing address they can use for mailing the payments.
In today's world, offering an automated rent collection process is crucial. You can collect rent online by creating a tenant portal.
Tenants can use this to pay their rent each month. They can also set up automatic payments to simplify the process.
A tenant portal is also helpful in other ways. You can use it to announce things or inform your tenants. They can use it to report repair problems and other issues.
Learning what makes renters happy can help you improve your rent collection process. Happy tenants might be more inclined to pay their rent on time. Incentives also encourage them to pay on time.
Create an incentive policy and give it to your tenants.
For example, offer a gift card to a local restaurant to tenants who pay on time for one year. You can offer all kinds of incentives that work.
Ready to Improve Your Rent Collection Efforts?
Rent collection is vital for every landlord. Are you ready to improve your process in Tulsa, OK?
We can help. Our firm specializes in full-service property management, and we have over 20 years of experience in this field.
Contact us at PMI Green Country to learn how our strategies can help you improve your rent collection efforts.