Top 3 Tips To Get a Renter To Pay On Time Without The Hassle
Looking for help managing your investment property?
Don’t hesitate to reach out!
Prefer to read rather than watch? We’ve included a transcript of the video below. Bear in mind that it is autogenerated so please ignore any typos:
Hi, Benton Cotter here, helping make your rental investment successful. Today, we’re gonna talk about the three top tips to get your renters to pay on time without the hassle.
The first one is, make it simple. If you prefer to have them pay you directly without an online-type payment portal, make it super easy. Give em the right expectations. Maybe even give em the pre stamped letters. You know, give it to em in envelopes so they can send in their rent check right away or have them be able to deposit if you use the same bank with you, they can go directly deposit the check right into your bank account.
That’s if you’re kind of used to that fashion and you want paper checks. I suggest, make it as simple as possible. Push out there to get an online system. There’s tons of em out there, There’s Cozy, there’s Tenant Cloud.
Lot’s of these online tools where you can sign up completely free to you, that your tenant is able to pay online through. Or if you have a Venmo account, give em your Venmo account, have em pay through Venmo. Or Cash app or Zelle or whatever you have. Again, make it as simple as possible.
You wanna remove as much friction as possible so they can pay that rent right on quick. A lot of times payin rent is, they have to like, writing a check, they have to sit down at their desk, sit down somewhere and physically write it out, and just the way we live, they just procrastinate that. But think if they have it on their phone while they’re looking at Facebook, and they just have a little app even through Facebook Money, now I just need a reminder, I need to send money to my landlord. Boop, click the button.
That’s a great way if you actually send them a little thing remotely like Requesting Money, you can do that through Venmo. And they just click a button, and then click another button that sends the money to you. Maybe do that every month to em if they don’t get annoyed with that. Little things like that, but again, make it as simple as possible.
Another tip: Set clear expectations of when you wanna get paid and how you wanna get paid. Always, in the rental agreement, put in the due date. Put in what the late fees are gonna be if they’re late, how many days it’s gonna be, if it’s a one-time fee or if it’s a daily fee, whatever it is depending on the state your in, you have different parameters that you can do.
Here in Arizona, in Texas, in Atlanta, we can do a lot of things. We can have a one-time fee of 75 bucks, 50 bucks plus a $10 fee after that every day. Set those expectations. But a lot of time also set how you’re gonna receive it. If they’re gonna mail a check in, do you do it when the timestamp on the actual envelope of when the post office got it, or do you do it when you actually receive the envelope and when we’ve got the check in hand. There’s some difference there.
You wanna be able to set those expectations with the resident beforehand. And make it easy. Make it simple so okay they know when it’s due, exactly what the penalty is, how to pay. If you’re gonna be able to give em an option to pay through Facebook, make sure in your agreement, they have your Facebook account name. Venmo, same thing. Make sure you give em all to em. Square? Give em all that information and make it as simple, as simple is possible.
Another way to make sure that they pay on time without hassle is do what you’re supposed to do.
If they send in a request for maintenance, be responsive, get it done quickly. If you’re responsive and you do your responsibility that you expected from the rental agreement, you set expectations with the resident, fulfill those.
If you fulfill it, reciprocity, they will fulfill their part, the end of the deal. If you’re late on making repairs or drag your feet on things, don’t be surprised if they drag their feet on paying the rent. It kind of goes vice versa. It’s not, I don’t think they do it intentionally.
It’s just the nature of our human ability I guess, or relationships. Reciprocity is really strong in business. That relationship is really strong. If you do your part, they’re gonna feel like they need to do their part. So always set those clear expectations, but be responsive to em. And again, try and make it as simple as possible. We have plenty of tips and plenty of ways.
We really boast ourselves that we get really good tenants that are hassle free. We do some other things with it to get rent. We always leave em a care basket or welcome gift. There’s things that we set the expectation to get that reciprocity going. And so if you really want to get that reciprocity going, do some of those tips that we talked about on the blog or reach out to us and we can definitely help you find that tenant and take away all the hassle for you.
We can be the rent collectors, not only rent collectors we manage your home, manage the maintenance, do everything for you. And so, reach out to us.