In recent years, no less than half of U.S. tenants have struggled to pay their rent. As a landlord, this puts you in a rather precarious position.
First things first: there are preventive steps you can take to minimize rent issues. Screening tenants thoroughly, for example, can weed out low-credit applicants. The thing is, money isn't always the root cause of rent issues.
Not sure what we're talking about? If so, here are some tips to streamline your rent collection process in Blacksburg, VA!
Check Your Local Laws
Depending on where your property is located, local laws can have a major effect on rent collection. Virginia is a landlord-friendly state, but you should still ensure your collection process is compliant.
It's also worth noting that Virginia law doesn't allow municipalities to impose any rent control policies. As a result, you can charge any amount of rent you find appropriate and don't have to justify raising rent prices.
Have a Bullet-Proof Lease
A lease agreement should clearly outline your tenant's responsibilities for paying rent. The more detailed your lease is, the easier it will be to avoid future issues. For example, your lease should specify:
- The amount of rent you charge
- When rent is due and how to pay it
- Which tenant payment options you accept
- How much the late fees are and when you'll charge them
Track Your Payments
Tracking rent payments is essential for keeping your cash flow in check and staying on top of your tenants. If you have to evict a tenant for not paying rent, you'll need clear proof of non-payment.
It's possible to use a single ledger or spreadsheet to stay organized. That said, most landlords opt to use rent collection software. The software will automatically generate up-to-date, accurate records of all payments.
Set Up a Late Fee Policy
Having a clear late fee policy encourages tenants to pay rent on time. In Virginia, late fees may not exceed 5% of the monthly rent. You may also choose to utilize a different late fee structure, such as:
- A flat fee in the range of $25-$100
- A fee of $5 for each day the rent isn't paid
- A fee of $25 that goes up to $75 if the rent is 10+ days late
Allow Online Payments
Allowing your tenants to pay rent online can do wonders for their punctuality. For starters, an online portal allows you to send automated rent reminders. It also makes it easier for tenants to use their preferred payment option.
Best of all, automated payments allow you to get your money faster. With an online rent payment, there's no reason to go to the bank or wait for a check to clear. As such, you'll be able to access your money within days.
Rent Collection in Blacksburg Made Easy
With the right tools and knowledge, rent collection doesn't have to be a hassle. If you need help implementing these tips on your Blacksburg property, hire a property manager for expert advice.
At PMI Commonwealth, we tailor our property management solutions to our clients' needs. We also offer an on-time rent guarantee -- if the rent isn't in your account by the 10th, our services for that month are free!
Contact us here to learn more about how we'll ensure you get paid on time!
