Sagareus Rent Collection Policies & Procedures

Rent collection is obviously essential to ensure the property produces enough income to cover costs. Our goal with rent collection is to receive full rent, on time, every month. 

Rent Collection 

Proper Applicant Screening and adhering to a comprehensive move in procedure will prevent most rent collection issues from occurring. However, sometimes residents will be late due to extraordinary circumstances or forgetfulness.

The first objective is to make regular rent payments as frictionless as possible for residents. For example, setting up online payment option with a recurring payment feature allows Residents to "set it and forget it" with recurring payments deducted automatically from their checking account. Of course, this option is not for everyone. Below I'll outline the payment options Sagareus has in place to create the most frictionless process for all residents.

Second, you'll want to have a simple Rent Collection Procedure in place to follow each month.  This procedure should include when, how and who should:

  • Send rent reminders
  • Prepare and post Notice to Pay or Vacate
  • Set up and / or agree to payment plans
  • Document attempts to collect rent and communication with each resident
  • Begin eviction proceedings, if necessary.

This does not need to be overly complicated, I've outlined Sagareus's Rent Collection Procedure below as an example. 

Lastly, you need to have your Rent Collection Policies documented. These policies can be written ahead of time, but if you find yourself in a situation where you do not have a written policy, go ahead and write it!  Now you can reply to your Resident and this will be your response to the same question every time. Written policies allow you to apply the same rules to everyone consistently (preventing favoritism) and give you strength in a difficult situation (it's not me, it's the policy).  I've included some of Sagareus's Rent Collection policies as examples on common Rent Collection issues, such as:

  • Under what circumstances will you waive a Late Fee?
  • How will you handle disputes between roommates / breaking up couples?

Rent Collection will never be fun or easy, but easy payment options, a simple procedure to follow, and enforceable written policies make the process as painless as possible.



Sagareus Rent Payment Options

Rent can be paid in 1 of 3 ways: money cash coins insta light grey

  • EFT Payment or Credit Card- Residents log into Resident portal to make online payment.
    • Residents have 2 Online Payment options: Manually each month or set up Recurring Rent Payments. NOTE: Sagareus will never make a payment for residents.  If recurring payments are set up, the system will pull that amount each month. 
  • Retail Cash Me - Some Residents prefer to pay via cash or money order, Sagareus has established a simple program to allow Residents to pay rent with cash at various retailers, including 7-11, CVS and many more. Residents need to communicate with their Property Manager directly who will provide a unique barcode to give to the cashier.  Read more about this option here.
  • Sagareus DOES NOT accept rent via mail - The reason for this is because many times in the past the rent gets lost in the mail, which is bad for everyone. 

Sagareus Rent Collection Procedures

Below are the procedures Sagareus utilizes to collect rent each month. Usually, residents will respond to communication and explain their plans to pay rent; All communication with Residents regarding rent collection and copies of Notices are documented in the Buildium and available for Resident review via their Resident Portal. 

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Due Date

  1. Rent is due on the 1st of each month; Late fees are applied 9am on the 6th of each month
  2. On the 5th of each month, an automatic email is sent to all unpaid accounts reminding Residents to make payment to avoid a late fee. (The reminder email is an automatic e-mail, so it will send even if residents call in to let us know rent might be late.)

Pay or Vacate Notice

  1. On the 7th, Resident Coordinator sends Notice to Pay or Vacate via Buildium.
    • Notice to Pay or Vacate is issued on the 7th on every account, even if Residents have informed the office rent will be paid late. 
    • Notice to Pay or Vacate is documented in Resident Portal.
  2. Account is classified "Outstanding"
  3. Late & Notice Fees are applied to Resident account.

Outstanding Balances

  1. Resident Coordinator contacts Residents with Outstanding Accounts on the 10th, 15th, 20th, 25th, and 30th to inquire about rent payment via Buildium.
  2. All communication and/or attempted communication is documented in Resident Portal.
  3. On the 30th and final attempt at collection, the account is classified "Delinquent" and elevated to Asset Manager. 

Delinquent Accounts

  1. Asset Manager and Managing Broker, will attempt to contact residents and assist Resident problem solve to prevent an eviction. 
  2. At the same time, Sagareus will move to a formal eviction process. 

For answers to more questions, please visit Sagareus Property Management Services featuring Property Owner FAQs.


Sagareus Rent Collection Policies
Common issues with Rent Collection along with Sagareus's response for each issue are listed below. 

Asking for Extension

  • Residents who need an extension on rent payment are granted 1 extension during their tenancy without penalty AS LONG AS the Resident contacts management BEFORE the 1st of the month to request the extension.rent collection sagareus real estate
  • Any future extensions will include a late fee without exception.

Roommate / Significant Other Disputes

  • Sagareus does not get involved in disputes among Residents. All Residents on the lease are responsible for the full amount of rent, regardless of what disputes are going on internally. 

Mailing Rent into Office

  • Sagareus DOES NOT accept rent via mail.  The reason for this is because many times in the past the rent gets lost in the mail, which is bad for everyone. 

History of Late Payment

  • Residents with 4+ late rent payments in a 12 month term will NOT be offered a lease renewal. 

Payment Plans

  • Resident Coordinator may negotiate a payment plan with Residents to get caught up on past due rent.
  • Once a payment plan is agreed to, it will be documented in Buildium task
  • Buildium task is assigned to Accountant, who will update the Resident Ledger to reflect the agreed upon payment plan.
  • If the payment plan is broken, Residents lose payment plan privileges and the entire outstanding balance is due immediately

 


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