Safe & Reliable Ways To Collect Rent From Tenants
As the COVID-19 era progresses, finding safe and reliable ways of collecting rent seems to grow more challenging. Landlord and tenant relationships are fragile as finances for both parties continue to be stretched thin. If you are a landlord, you must research what resources are available to you and what resources are available to your tenants. Once you have this information, it is your responsibility to disseminate this information to your tenants and teach them how to apply. Additionally, you must keep an open communication line and understand how to speak with your tenants about what they can pay during these times. You should take some extra time to get to know your tenants. Ask them how their children are doing or if they have any family coming into town for the holidays. Taking the time to build this good repour will help your tenants put their rent at the top of their list of bills they need to pay.
Provide a Contactless Rent Collection Dropbox for Your Tenants
Contactless transactions are the way of the future, including rent collection. If electronic rent collection is not possible, the safest way to collect rent from your tenants is to set up a contactless rent collection dropbox. Just be sure the dropbox is in a safe location with enhanced security and that no one can find a way to steal your rent payments. Be sure to indicate to your tenants your expectations for submitting their rent and the absolute deadline to put their rent payment in the dropbox.
Encourage Tenants to Set Up Rent Payments Through an ACH Debit
Automated rent collection makes sending and receiving payments much easier for tenants and landlords. Having your tenants pay rent online decreases the number of contact points you need to have with your tenants. They upload their bank data and set the date the money will be withdrawn. ACH debit also ensures they never miss a rent payment again.
Create a Rent Payment Plan with Your Tenants To Help Them Budget
If you are having issues with collecting rent from your tenants, create a rent payment plan. Start by asking them what they can pay rather than suggesting monthly amounts. This allows you to understand their financial situation and help them create a budget that works for both parties.
Collect Rent Through A Partial Payment System
Many of your tenants may have lost their jobs, and some may have even lost their spouse, who was responsible for bringing in the family’s monthly income. Other individuals have had bad luck that is not COVID-19 related, but they struggle to make ends meet. By keeping an open communication line and consistently following up with your tenants, you can learn what partial payments they can make. It is your responsibility to remind tenants that their rent debt is not going away. The more they can partially pay now, the lower balance they will have to pay back in the future.
Take Advantage of Government Rental Assistance Relief Programs
Government agencies have received federal funding to help families during these times. As the landlord, your job is to learn about these programs, understand how they work, and teach your tenants how to apply. Once your tenants are accepted, these funds are paid directly to you. Learn more about the Wisconsin Rental Assistance Program (W.R.A.P) and Maximus Wisconsin Works program, and share this information with your tenants as quickly as possible.
Utilize Non-Profits That Provide Relief To Tenants During Hard Times
Non-profit agencies can also offer your tenants assistance. Many of these non-profit organizations can do more than simply help with rent. They can help provide meals, take care of heating bills, provide clothing, and cater to other needs your tenants may need. Learn more about Community Advocates and other nonprofits and charities that can assist your tenants.
Collect Rent Through a Property Manager
The easiest and best way to collect rent is to go through a property manager. Your property manager will collect rent on your behalf and communicate with your clients who are behind on payments. An elite property manager, such as Smart Asset Realty, follows rigid communication timelines that ensure rent payments are in your bank account by the 5th of each month. Better still, a property manager can help with more than just rent collection. At Smart Asset Realty, we can assist you with handling maintenance requests, operating expenses, emergency requests, and much more.
If you need assistance in collecting rent, please do not hesitate to contact us today and learn more about how our top-rated services can assist you.