19 Jul Landlords: Ensure your tenants pay the rent on time!
As a landlord, one of your biggest worries is going to be whether or not your tenant pays
their rent on time. It is vital to collect your rent payments on time each month, therefore;
we have put together a list of things you can do in order to get your tenants to pay their
rent on time.
Get a rent guarantee policy
The first (and most important) step you can take is to set up a rent guarantee insurance
policy in place. We highly recommended setting up a rent guarantee policy – if the tenant
fails to pay their rent for any reason then the insurance policy will pay you the rent instead.
A rent guarantee policy will provide you with complete peace of mind to help you secure
your investment. Order your rent guarantee policy with Van Mildert today.
Communicate with your tenant
Communication is a hugely important for any landlord, particularly so when it comes to rent
payments. Make sure you’re clear about when the rent is due from the start of the tenancy.
You should also outline if there are any late payment fees set in place, or other
consequences if your tenant doesn’t pay on time. We recommended getting your tenant to
initial and date every single page of the lease and rent agreement, this will provide evidence
that they have understood everything.
Charge a late fee
Charging a fee for any late rent payments will prompt or motivate your tenants to pay their
rent on time. Always make sure they understand this when the tenancy is signed and it is
written in their rent agreement. You could also consider offering a small discount for paying
their rent on time, this will motivate your tenants to keep paying on time.
Report the late rent payments to a credit check bureau
Credit checking bureaus now provide a service for landlords to report late rental payments.
Tenants will want to keep their credit score as good as possible therefore this will encourage
them to pay their rent on time. Always let your tenant know if you’re planning on reporting
their late payment as this may persuade them to pay their rent sooner rather than later!
If you require any more information or advice on any of the topics we have discussed then
please don’t hesitate to contact us.