Collecting the Rent

Collecting Rent from Your Scottsdale Rental Properties

Having a rental property in Scottsdale can and should be profitable. However, it all depends on collecting the rent every month. You rely on the rent as a part of your cash flow and to help pay off the mortgage of the property in many cases. This means that you have to have a good and reliable method of collecting the rent, along with tenants who pay on time each month. Here are some simple tips to help make getting that rent as easy as possible.

Choose the Best Tenants

The first and most important thing to consider is the tenant. If you have an irresponsible tenant who doesn’t pay rent or who habitually pays rent late, then it will be trouble time the rent comes due. You can save yourself from quite a few headaches by screening the tenants before you rent to them. This ensures that you are choosing those who have a good background and who have the financial stability needed when it comes to paying the rent. If you do not bother with a screening, and you do not check the person’s references, you have no idea who you are getting.

Make the Payments Automatic

One of the options that you may want to consider is automatic payment through an auto pay system. This is a simple way to make sure that the rent is paid on time. Some online pay services are available to help landlords with this type of collection. While this is a relatively easy way to make sure you get your money, it may not be something that all tenants are comfortable with using. If this is the only method that you offer, there is a chance that it could push some good tenants away because they do not trust the automatic deductions.

Have a Grace Period

Even if the rent is due on the first of the month, you could offer a three-day grace period for tenants. This can help some tenants who claim they only need “another day” to pay the rent. This is not an ideal system, but it is one that could work for you. Make sure that you are consistent with this policy if you have more than one tenant. It needs to be the same for everyone.

Do Not Take Cash

The idea of taking cash as rent payment might be tempting, but do not do it. There is no way to track the cash, no paper trail. Instead, you should insist on checks, money orders, and cashier’s checks instead. This eliminates the possibility of the tenant claiming that he made a payment without actually doing so.

Have a Policy in Place

Make sure that you have a policy in place when it comes to the rent, and be sure your tenant has a copy of the policy. It should state the amount that is due, when they are due, and how and where to pay. It should also include the grace period, which we mentioned earlier. Also, note the consequences of what will happen in the event of a bounced check, as well as nonpayment of rent. If the tenant is late, ask them when they will be able to make the payment. You do not want to encourage late payments, so there should be a penalty for this. However, sometimes people really do need just another day to pay. Be firm, but also understanding unless it becomes habitual.

If you want to take away all of the worries and concerns of collecting rent for your property, consider working with a Scottsdale property manager. They can handle the collection and policy process for you.

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