As a rental property investor, you may be able to make a lot of money. Doing so, however, can often be challenging.
The St George, UT, real estate market has a lot of potential if you know how to approach it, but you can only make money if you're collecting rent payments. The easier your rent collection is, the more reliable your income will be. Establishing a solid cash flow is key, especially if you want to invest in more real estate in St George.
In this guide, we'll explore some rent collection strategies that will help ensure you always get your rent on time. Keep reading for more.
1. Automation System
The real estate industry is always growing. You should embrace the latest technologies to make things easier for yourself. You can use an automation system to collect rent with ease.
An auto-debit system is the perfect example of this. The tenant can set up an auto deduction from their bank account that transfers the same amount on the same day of each month. They won't have to worry about remembering to pay as it will happen automatically.
2. Select Tenants Wisely
If your tenants decide not to pay their rent, you're going to have to deal with it. Sometimes it's not too difficult to resolve, but you may end up having to take legal action. The best way to avoid this is to make sure you have desirable tenants.
If you market your property well, you'll attract a lot of tenants so that you have plenty to choose from. A thorough tenant screening process will then show you if potential tenants have a history of not paying rent or anything else that you'd want to avoid. Property managers in St George can help you with this entire process.
Ideally, you want tenants who have a suitable income, a strong credit score, and solid references. Reliable tenants will always pay rent on time so you don't have to chase them up or worry about not being paid.
3. Enforce Your Rent Collection Policy
Even if you have tenants you trust, you should still make sure you enforce your rent collection policy. If you don't, they might start abusing your leniency.
Avoid accepting late payments. If they realize you'll do this, they may start paying late more often. You should set a pattern and maintain it continuously.
Your lease should contain specific details about rent payments including:
- Exact rent amount
- Due dates (and grace periods)
- Where to make payments
- Accepted payment methods
- Consequences of late payment/no payment
With this information in the lease agreement, your tenants won't be able to claim ignorance and should always pay their rent on time.
Getting the Most Out of Your Rental Properties
Rent collection isn't always easy, but with the right approach, you shouldn't have too many issues. If you can find quality tenants, ensure they understand your rent collection policy, and make it easy for them to pay, you should always get your rent on time.
A professional St George property management company like PMI St. George can help with this. We also offer various other services such as marketing, maintenance, and accounting. Take a look at our property management page to see more.