Have you ever had problems collecting rent past due from a less-than-reputable tenant?
As a landlord, nobody wants to deal with the issue of having to collect past due rent money. When the rent is late and unpaid, you’re behind if you don’t do something about it immediately.
You’re not alone in this situation. Several strategies you can use that don’t involve confrontation to get the money late-paying tenants owe you.
Keep reading to find out more on the effective strategies to collect past due rent!
1. Give Your Tenants a Grace Period
It means that you will allow them to pay the rent past due without any penalties or late fees. It can be a great way to show your tenants that you understand and are willing to work with them.
Another common strategy is to offer a discount for paying the rent on time. It can be an excellent incentive for tenants to pay their rent on time. It can also help to build goodwill between you and your tenant.
2. Set up a Payment Plan
Working with the tenant to devise a realistic plan that both parties can agree on is essential.
Be sure to put the plan in writing and have both parties sign it, so there is no confusion later. The landlord can begin eviction proceedings if the tenant cannot stick to the payment plan.
This also allows the tenant to catch up on their rent over the due date while still being able to live in their home.
3. Hire a Collection Agency
This is one effective strategy because the collection agency will have the resources and experience to track down the tenants and collect the money owed.
The collection agency will also likely be able to negotiate a payment plan with the tenants so that you can receive the money owed over time.
4. Send a Demand Letter
This letter should state the amount of rent and when that is due. It should also give the tenant a specific amount of time to pay the rent or face eviction. The past due rent letter will be sent by certified mail, so the tenant has proof that they received it.
If the tenant does not pay the rent within the specified time frame, then the landlord can proceed with eviction.
5. Take Legal Action
When a tenant doesn’t pay rent, a landlord’s options for collecting the rent will vary based on state law. If the tenant owes a lot of money, the landlord might want to order the rent through wage garnishment or attach the tenant’s bank account.
A landlord can give the tenant a notice demanding payment. If the tenant still doesn’t pay, the landlord can file a lawsuit.
To prevent the collection of past due rent, it is best to ensure that your tenant is already a responsible payor to start with. To help you out in screening your tenants in the future, check out this link https://rentsafe.lease/tenant-screening-for-property-managers/
Collect Your Past Due Rent Today
Landlords can use several effective strategies to collect past due rent from their tenants. These include hiring a professional collections agency, sending a demand letter, or even filing a lawsuit.
While each method has its own benefits and drawbacks, landlords should choose the approach they feel will be most successful in their specific situation.
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