4 Rent Collection Mistakes To Avoid For Your Peyton Rental Property

Landlord Essentials

Perhaps the most crucial part of managing a rental property is proper rent collection. After all, without the rent, you have no income, no business. And while the biggest responsibility for rent payment falls on the resident’s shoulders, there are a few ways that landlords and property managers can help make the process simple and easy. Make sure to avoid these 4 rent collection mistakes when self-managing your Peyton rental property.

Rent Collection Mistakes To Avoid

#1- Outdated Payment Options

We live in a digital age where convenience is highly valued and even expected. One of the biggest rent collection mistakes DIY landlords often make is not offering electronic payments. Paper checks are quickly going out of fashion and don’t offer the same speed and convenience as online payments. And in today’s age of technology, so many options exist for landlords to do so, from easy-to-use property management software to electronic bank transfers. Just be sure to weigh the pros and cons of using payment methods such as Venmo or Paypal for rent collection, as they don’t offer the same level of ease and protection to landlords as they might to tenants.

#2- Ignoring Rental Payment History

The second mistake to avoid begins at the tenant screening stage. Completing a thorough rental history check on prospective renters provides valuable insight into whether an applicant will make a reliable and qualified resident. Ignoring their payment history is a huge mistake and can lead to greater headaches down the road. The same goes for during the lease. If your tenant is consistently late, makes partial payments, or has excuses every month for why they can’t pay, it may be time to reevaluate whether to continue renting to them. You may decide not to renew the agreement when the time comes or you may decide to proceed with an eviction after following the proper legal steps.

#3- Failing to Follow Through With Late Fees

While no one wants to be the bad guy in any relationship, failing to follow through with the consequences of non-payment written out in your lease agreement is another mistake landlords need to avoid at all costs. Your rental property is a business and should be treated as such. This means a certain level of professional detachment is required to succeed. While you may consider waiving late fees for one-time occurrences, avoid making a habit of it. This shows your tenant you’re not serious and that your agreement won’t be enforced. If you’re not comfortable being the bad guy or can’t distance yourself professionally, consider hiring a property manager to do so for you.

#4- Failing to Explain the Payment Process and Expectations

The final mistake landlords make with rent collection is failing to properly explain the payment process and expectations. Never assume your tenant will simply pay the way you want without first explaining how you want them to do so. Such a crucial part of managing a rental property deserves extra communication to avoid misunderstandings. The best time to do so is when going over the lease agreement. Outline exactly how and when your tenant should submit their rent and what the consequences of not doing so are.

Colorado Springs property owner on a computer and phone

It may seem like rent collection is the simplest part of managing a rental property. The reality is it can be one of the most burdensome, especially when things don’t go according to plan. Make sure to avoid these common rent collection mistakes and if you feel like hands-on management isn’t working for you or not the route you want to go, consider hiring Real Property Management Colorado to manage your rental property for you! Our rent collection process is smooth and simple for everyone involved. We’ll help get your money in the door and disbursed out to you in no time!

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