Eviction rates are on the rise in Florida, and one of the primary causes is late or non-payment of rent. It can create a big headache for landlords who depend on that monthly income to maintain their real estate business.
Nevertheless, there is plenty you can do to avoid the worst-case scenario. Read on as we outline the five best rent collection methods for your Orlando rental property.
1. Use an Online Payment Platform
Improvements in technology mean modern online payment solutions are sophisticated and efficient.
These systems can manage rent collection for you and oversee other administrative work for your rental, like maintenance scheduling. Tenants also prefer online payment systems because they allow them to track past payments and meet their obligations.
Choose a web-based one because it has the added advantage of being accessible from anywhere in the world. Thus, you won't have to worry about late rent payments if the tenant is on vacation.
2. Set Up a Direct Deposit
Direct deposit is when rent is automatically transferred from the tenant's bank account to the landlord's. It's an efficient rent collection method and means you won't have to track payments or send reminders.
If the deposit fails, your bank will notify you. You'll also have an easy way to track all past payments for your financial records. Administrative overheads are low, making it one of the most popular rent collection methods.
3. Offer a Rent Drop Box
A rent drop box is a physical, secure box that you can put in a location surrounding a property. It's a place where tenants can drop their checks or money, and you can collect the payments at a time that suits you.
It means tenants can pay when it's convenient and don't need to schedule a time with you, and you can collect the money when you're ready. It's also popular with those who dislike more modern digital methods.
4. Provide Incentives
Incentives can help you achieve improved rent collection, and tenants are more receptive to it than fines for late payments.
For example, you could offer a discount on the next month's rent if the tenant pays on time over a series of months. It's an easy way to achieve a more sustainable income without much administrative overhead.
It also reduces the time you spend sending reminders or chasing payments.
5. Communicate With Tenants
Communication is at the heart of a strong relationship with your tenant, so make it a priority.
If you are in regular contact and responsive when your tenant has issues, they will be more open to receiving rent reminders via text message or email.
A quick conversation can often be all you need to get rent payments up to date, and it means you can avoid more severe enforcement, like issuing fines or warning letters.
Rent Collection: Taking a Proactive Approach
Rent collection doesn't need to become a monthly worry. By taking a proactive approach and being flexible with your tenant about rent payment methods, you can keep that side of property management running smoothly.
You can also get the helping hand of experts. PMI Property Solutions is a leading Orlando real estate team that offers full-service property management. Discover our comprehensive suite of services here.
