10 Tips to Make Sure You Get Paid on Time

Posted in Blog  
  on May 19, 2016

Rent is a vital part of your business. If the tenant is late with it or does not pay, then it can put you in a real bind when it comes to paying the mortgage on the property or paying for repairs that are needed. You should be aware of a few details when it comes to setting, collecting, and raising rent:

 

  • Consider the Rent to Mortgage Ratio - When you first purchase your rental property you will need to have an idea how much you are planning to charge for rent. This will help you set your expectations.
  • Understand Rent Control -  While not every area will have rent controlled neighborhoods or buildings, if you live in a city that does, you'll want to have a full understanding of what those laws cover and how they affect you as the landlord.
  • Earning a Higher Rent Rate - As a landlord and property manager you will always be looking for ways to make your rental more profitable. Something as simple as better landscaping can help to bring in higher quality tenants as well as allow you to ask a higher rent price for the property.
  • Online Rent - Choosing to accept rent online can help make it easier for your tenant to pay you. They can set up automatic withdrawals to make sure that you are paid in a timely manner every month.
  • When to Raise Rent - You may have a policy in place that says if you will raise the rent with each new lease or you may make that decision as the need comes in. Choosing when to raise the rent, how much, and if you should at all may affect your relationship with your tenant, so make sure that you consider your options.
    • Tenant's Rights in a Rent Increase - A tenant has certain rights when it comes to a rent increase, and those rights may depend on where the rental is located and what local laws govern the area.
    • Negotiating a Rent Increase -  If you alert your tenant of a rent increase with their new lease, they may attempt to negotiate a lower rent from you. You will need to know some of those negotiation tactics to make sure that you are ready and so that you can make an informed decision.
    • Section 8 Rent Increase - When you accept Section 8 tenants into your rental, there may be a few things you'll need to consider when it's time to raise the rent at the start of a new lease.
  • Rent Responsibility if a Tenant Passes Away - There may be a time when a tenant passes away before the end of their lease. If this happens, you will want to approach the situation with care.
  • Signs a Tenant Will Skip Out on Rent - No landlord wants their tenant to skip out on their rent, but there are a few warning signs that you can watch for to prepare.

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