New York is famous for its rentals, but did you know that a whopping 69% of people living in New York City rent their homes? Rental housing will always be in high demand in America's most populous city, but owning rental property comes with its challenges.
One of the biggest challenges landlords encounter is rent collection. If you're struggling to get your tenants to pay their rent on time every month, then it's critical that you create solid lease enforcement strategies. Read on to learn some of the most effective ways to encourage your tenants to pay!
Start with Good Tenants
Before you consider rent collection strategies, it's important to make sure that you have solid tenants living in your property. This means crafting a marketing strategy that targets your desired tenants. Write down the ideal qualities you'd like your tenants to have, including:
- Their ideal income
- Credit rating minimum
- Their lifestyle (e.g. working professional, upscale family, etc)
- The amount of time you want them to live in your property
Remember, while you can have an ideal tenant in mind, the Fair Housing Act prohibits discrimination based on a protected class if an applicant otherwise qualifies to live in your rental property.
Make Paying Rent Easy
One of the best ways to ensure that your tenants make timely payments each and every month is to make it as easy as possible for them to pay. In today's busy, digital world, mailing a check is arduous and risky. Drop boxes require you to be in town for rent week every month.
If you're looking for rent payment solutions that aren't a drop box in the building, consider adding rent collection software to your tenant portal. This allows tenants to make their rent payments online with their bank account no matter where they are in the world. The easier it is, the more likely you'll get paid on time.
Clarify Due Dates and Late Payments
A lot of landlords utilize similar lease agreements, making it easy for most tenants to get the due dates and late payments down. Still, it's important that you do everything you can to emphasize the following items:
- The rent due date
- The timing of any grace period after the due date
- When a late fee hits and how much it costs
- what form of payment is required following a certain date
This information is typically on the first page of the lease. It's also helpful to hang up signs in the building and send out email reminders once a month.
Consider Incentives
If your tenants are paying their rent on time, every time, they deserve some kind of recognition! Consider offering up biannual incentives for tenants with 100% on-time rent payments. Things like gift certificates to NYC's hottest restaurants go a long way toward tenant morale!
Rent Collection Is a Breeze with These Tips!
Having kind, quiet tenants living in your rental property isn't all it's cracked up to be when they don't pay their rent on time. Coming up with a solid rent collection strategy is the best way to promote stability in your real estate portfolio. You won't regret taking the time to help keep your tenants on track!
Are you considering getting into real estate investment? You absolutely should have the best expertise in property management in NYC backing you up. Contact PMI Paramount today for a free rental analysis!
