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.
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:
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:
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.
Rent can be paid in 1 of 3 ways:
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.
Pay or Vacate Notice
For answers to more questions, please visit Sagareus Property Management Services featuring Property Owner FAQs.
Asking for Extension
Roommate / Significant Other Disputes
Mailing Rent into Office
History of Late Payment