Landlords in Beverly Hills, CA, make well over $100,000 a year. Of course, to make this kind of money, you need to fill your properties with tenants who pay their rent on time.
There are a few rent collection strategies that will help push your residents along. For example, some forget to pay until the last minute. Sending reminders will jog their memory.
You should also give your tenants a convenient way to pay their rent and make sure to enforce late fees. These are only a few ways to collect rent payments. Continue reading to learn more.
Use an Online Portal
Many landlords in Beverly Hills collect rent online. It provides tenants with a convenient way to submit their rent payments on time.
Online rental payments aren't only convenient. They're also safe and don't cost much. You can go through a rental management company or take Venmo.
However, Venmo and PayPal aren't as secure as going through a rent collection service. Payments will take a few days to show up in your business bank account unless you pay the instant transfer fee.
Choose the Right Tenants
To manage rental properties in Beverly Hills means screening tenants. If you aren't thorough enough, you may end up with residents who don't pay on time or at all.
Do a credit, background, and rental history check. You should also ask potential residents to submit proof of employment.
Have your tenants include references on their rental application that you can call. This will give you insight into the kind of person they are.
Don't Accept Cash
There aren't a lot of landlords that accept cash rental payments, and for good reason. It doesn't have a paper trail. If you forget to write a receipt for the payment, you may also forget to log it into your system, which means it will appear as if the tenant never paid.
You can imagine how angry that tenant will be when you put an eviction notice on their door. Cash can also be stolen or lost. The only upside to taking cash payments is that you won't have to wait for it to show up in your bank account.
Paying late isn't always an act of maliciousness. Sometimes, tenants lose track of the date and forget to submit their rent on time.
That's where rent payment systems and apps come in. You can use them to send your tenants messages to remind them when the rent is due. This results in fewer late payments and happier residents.
Enforce Late Fees
Tenants don't like paying late fees. That means they're more likely to pay on time if you enforce them.
If you're going to have late fees in place, make sure that you include it in the terms of the lease.
Rent Collection Methods That Work
Being a landlord can bring you a great deal of profit. It can also drain your finances if your tenants pay late.
The best way to make late payments a thing of the past is to use the right rent collection methods. PMI Beverly Hills can help you receive your rent payments on time every month. Go here to learn more about our services and get in touch.