A landlord needs to have a strong framework in place so that his tenants always pay the rent on time. You can have multiple options for rent payment but always ensure that there is a strict system for late rent. You need to be completely proactive if you want the tenants to be on time for their rental payments every month.
The first important step is to decide the correct rental price for your unit keeping in mind factors such as amenities provided, utilities, value of your property, location of the property as well as the rental season. Research comparable units in your neighborhood and consult your real estate agent to arrive at a good rental price.
When it comes to rent collection, there are certain methods that can be employed and you need to discover which one works best for you and your tenants. Below is a landlord’s guide for collecting rent:
- Avoid Collecting Cash In-Person: Collecting rent in-person is not only time-consuming but also diminishes your authoritative position. It is best not to chase the tenants every month and instead allow them to deposit the rent on their own. The only upside of collecting the rent on your own is that you can check up on the property to see if it is being well maintained.
- Don’t Allow Tenants To Come At Your Place: Do not give your address to the tenants or tell them to drop-off at your place for paying the rent. Deal with rental payments and tenant issues professionally during specific office hours. Call the tenants in your office or have a conversation on the phone for rent collection. This will ensure reduced stress levels and enhanced safety for your family.
- Getting Rent By Mail: One of the easiest ways to collect rent is by asking your tenants to mail the check to your PO Box and not home address. Ask your tenants to mail the check in advance so that you receive it on time. Keep a late fee for mail that is posted on a later date and gets delayed while reaching you. Also, it is good to specify that your tenants should not mail you the rent in cash.
- Always Provide Rent Receipts: It is imperative to provide a receipt for the rental payment you receive. Some states have specific laws in place that require you to give a rent receipt to the tenant. If your tenant pays rent online, the receipt can be automatically emailed to him thereby saving your time. The receipt should include: tenant’s name, address of the rental unit, amount received, date on which the amount is received and name of the person receiving the receipt.
We, at Hunter Rentals & Property Management provide thorough assistance in rent collection and property management. To know more, call at (254) 634 – 3311 or visit 1503 W Stan Schlueter Lp, Killeen, TX 76549.
Being a landlord entails a lot of responsibilities and it is natural to make errors along the way. You need to take care of various processes ranging from screening the tenants to listening to tenant requests. The 10 biggest mistakes commonly made by landlords are:
- Not Hiring A Real Estate Agent: Having an experienced real estate agent is a must, particularly if you have another job or reside in some place far away from your property. A real estate agent can handle all the issues pertaining to your property such as screening potential tenants, carrying out home inspections, staging your property, dealing with repair work etc.
- Not Screening The Tenants: Tenant screening is essential so that you get to know about all the details of your prospective tenants. This will ensure that no problem arises in the future due to irresponsible behavior of the tenant. Ask for employment record, credit record and criminal record etc.
- Hurrying To Fill The Vacancy: Do not be tempted to fill in the vacancy as soon as the previous tenant moves out. Instead, wait for a valuable tenant who will respect your property like his own and only then give your property on rent.
- Not Advertizing Effectively: You cannot sit back or relax and hope that new tenants will start coming in on their own. It is important not to underestimate the effectiveness of good marketing and referrals. This will get you prospective tenants at a faster pace.
- Not Communicating With Tenants: It is important to have a face-to-face conversation with your tenants regarding issues such as late rental payments or any other problem. Poor communication will eventually affect the landlord-tenant relationship in a negative manner.
- Overpricing The Property: Research online, talk to your real estate agent and know about the average rental income in your area. These are the factors that need to be considered while deciding on the rent. Don’t overprice as this will keep most of the prospective tenants at bay.
- Poorly Staging The Property: Every tenant wants to see his home in your property and therefore it is essential to stage it well. Poor presentation is a big turn-off and should be completely avoided. Beautify the interiors and exteriors if you want to attract tenants.
- Not Getting Enough Tenant References: It is important to get a good number of tenant references so that you know all the details about your tenant. Get in touch with the employer and previous landlord to get an indication of your tenant’s conduct and discipline in paying the rent.
- Not Investing Enough Time: As a responsible landlord, you need to be in regular touch with your tenants, take note of the house repairs required and resolve any tenant concerns etc. Not investing enough time may make it difficult for both the parties in the longer run.
- Getting Emotionally Attached To The Property: Your rental home should be seen purely from the business perspective. It is a means of earning cash and therefore you need to remain as objective as possible while dealing with any tenant concerns.
To rent out your Killeen, TX based home, get in touch with Hunter Rentals & Property Management. Our property managers will provide you with thorough assistance. To know more about our services, call at (254) 634 – 3311 or visit 1503 W Stan Schlueter Lp, Killeen, TX 76549.