Of the many responsibilities that the landlord or a property manager has to handle, one of the most important things related to the income-generating part of the business is collecting the rent. Without a proper system that is to be followed in collecting the monthly rent, the whole business can end up in not learning as much as the landlord would want.
For the landlord or the property manager, it is important to think about collecting rent as an issue that does not begin on the date when it would be due. In fact, it would begin the moment the tenant fills out the rental application.
When it comes to assuring that the potential tenant can pay the rent on time, the landlord has to check past rental references provided by the applicant. The property management company should also perform credit checks. The tenant should also be interviewed. If the landlord can screen tenants to ensure that they would be able to pay on time, then the next step in rent collection should be considered.
The lease agreement should be very clear regarding the issue of rent collection. In drafting this agreement though, the landlord or the manager should make sure that the important points are highlighted and easy to understand. For instance, the date and time when the rent would be due should be stated in the agreement. The tenant should also be made aware where the rent is to be paid. Of course, if the tenant fails to pay the rent on time, the consequences should also be included in the rent agreement. If the tenant signs the rental agreement, then they would be legally required to follow it to the letter.
When setting the consequences for late payment of rent, the landlord should take into consideration the fact that sometimes, even good tenants can fall on bad times. This could result in the tenant paying the rent late after years of paying it on time. The management company or the landlord should know how much latitude they can provide to a good tenant that has been occupying the property for an extended amount of time.
By taking these things into consideration, the landlord or the property management would be able to create a system for rent collection. This would allow the business to achieve its maximum e-learning potential. Being an investor, one of the largest goals should be getting good return on the investment and with a good rent collection system in place, getting good return within a small amount of time is very possible.