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Chicago Property Management Blog

Top 5 Tips for Rent Collection

Top 5 Tips for Rent Collection

Whether you're a property owner or part of a REIT, monthly rent collection is likely one of your most significant challenges. But it doesn't have to be! 

In fact, you can cut the hassle and headache by employing a few simple strategies that save both time and energy.

Want to know more? You're in the right place. 

Read on for five expert tips to make collecting payments a breeze, no matter what kind of rental property you're working with.

1. Start With Outstanding Tenants

Tenant screening is the absolute best way to ensure your renters pay on time each and every month. 

If you're wondering why - the answer is easy. Responsible renters want to pay on time! They're also more likely to respect your rental unit, caring for the space that they live in much as you would your own home.

2. Go Mobile

These days, we can pay for nearly everything online. So, why should rent be any different?

Giving your tenants the option to pay their rent online will keep you from having to knock on doors. It also makes on-time payments easy for renters who travel or spend less time at home.

Online payments also make record-keeping easy, with a digital receipt for every payment received. That way, there's never any doubt as to who owes what.

3. Send Out Reminders

Even the most responsible tenant could occasionally forget that their business or apartment's rent is due. It's just human nature!

Setting up reminders will help them catch their mistake if something gets overlooked. It also demonstrates good communication and helps to establish a paper trail just in case further action is needed later on. 

4. Manage Late Fees 

According to the Late Fee Fairness Amendment Act of 2016, a landlord can charge up to 5% of a tenant's monthly rent in late fees. So, if your tenant's rent is $1,000 per month, you can legally ask for up to an additional $50 if they are 5 or more days late making their payment.

Making your policy on late fees clear to renters from the very beginning is a great way to avoid late payments and other issues when it comes to rent collection. 

5. Hire Professional Help

Even if you're a real estate rental pro, collecting payments from all of your tenants each month can be a major hassle. And, when something goes wrong, you'll be left to handle it all on your own.

For greater peace of mind and backup when there are issues, consider hiring a professional property management company. They'll happily handle everything from screening potential tenants to signing lease documents, collecting rent, and managing any issues that might arise on your property. 

Rent Collection Made Easy

With this article as your guide, you're ready to collect rent from all of your tenants without hassle or headache. And, believe it or not, your renters will likely thank you for it!

Do you have more questions about rent collection or need help managing your rental properties? GC Realty and Development is here to help.

Contact us today for assistance with residential and commercial property management, building maintenance, and more!