More than 10.6 million Americans get incomes from rental properties. So, it’s good to have proper rent collection procedures to protect your business.
Rent collection mistakes will damage your relationships with the tenants. They will also jeopardize your business in the end.
Following the right rent collection guide will protect your tenants from unnecessary evictions. It is also a way of having long-lasting and trustworthy tenants.
Keep reading to learn about key rent collection mistakes to avoid.
Not Tracking the Payment History
The era of collecting rent in cash is gone. One of the biggest landlord rent collection mistakes is failing to track the payment history.
There are risks of not tracking the rent payment. For one, the tenants may intentionally decide to be inconsistent.
Accurate payment history also acts as a backup when selling homes for rent.
Accepting Partial Payments
This is among many other mistakes that inexperienced San Diego landlords make. Many inexperienced landlords don’t see problems with collecting inefficient rents.
This mistake has several drawbacks. First, it will hinder you from financing your property maintenance and repairs.
Again, allowing partial payments will encourage your tenants not to respect your business. In fact, they will get less concerned with rent payment.
This doesn’t mean you shouldn’t be flexible. At times, the tenants may be facing financial challenges.
Rushing to Evict the Tenants
Evictions are necessary, but they can botch your business when done unlawfully. Illegal evictions may subject you to legal action.
Make sure you know how to handle evictions legally. Provide the uncompliant tenants with an eviction notice. By this, you’ll give them enough time to settle the rent or vacate.
Go on with the eviction process if the tenant fails to pay the rent. The eviction process needs to be human. Don’t throw out your tenants at night – follow the legal process.
Again, avoid constructive evictions. This is when you damage your property to make the tenants leave.
Several things constitute constructive evictions. These include removing toilets and sinks, cutting off the utilities, and changing the locks.
Doing Everything Alone
San Diego Rental property management can be overwhelming. You need to hire a good property management company.
There are reasons to hire professional help for your property management.
Dealing with tenants can be stressful. A good property management company has enough experience in handling tenants.
An expert will also help you get high-quality tenants. This is because of the thorough screening process of the tenants. At Penny Realty, we have an extensive 11 step screening process that results in the selection of high quality Tenants. This also allows us to provide an Eviction Free Guarantee at no additional expense to our Property Owner/Clients.
These Are the Mistakes to Avoid During Rent Collection
Inappropriate rent collection can make you lose good tenants and incur serious losses in the end.
You need to follow the right rent collection guide. By this, you’ll enjoy timely and consistent rent collection.
Are you looking for a San Diego property management company to help you with rent collection? At Penny Realty, Inc., we aim to generate maximum returns for our clients while providing our residents with an amazing renting experience.
Contact us today for more information.