Whether you're a private owner, investor, or part of a REIT - Real Estate Investment Trust, you'll have to deal with collecting rent from your tenants. And, believe it or not, getting these payments can be one of the biggest challenges you'll face in the business.
In fact, even the highest-end properties struggle with late payments, non-payment, and other problems when it comes to rent collection!
If you're struggling to get paid on time - or at all - this is your guide. Keep reading to learn about the steps you should take when your tenants don't pay rent.
Talk With Your Tenant
Though this first step might seem obvious, it often gets overlooked. Before you start to stress about a tenant's late payments, have a calm and rational conversation with them.
Nearly every person will experience a rough patch or wind up down on their luck at some point in life, and your path to resolution may be easier if you can find out what's going on and negotiate with your tenant directly.
Give Written Notice
If you've already had a chat with your tenant and you still aren't collecting rent, it's time to outline the issue in writing. In keeping with state law, you'll need to will need to issue a written notice allowing three additional days to make payment.
If your tenant still doesn't pay, you may have the option to evict them.
Cash for Keys
Once written notice has been given, you may still not receive payment. At this point, it's time to decide whether or not it's worth it to you to begin the eviction process.
Because eviction can be costly and time-consuming, many landlords make cash for keys offers, essentially paying problem tenants to leave without winding up in court. While this might sound counterintuitive, it is often the more affordable of the two options and yields much faster results.
Eviction
If you've tried everything and your tenant still won't pay, your only option is eviction. This requires filing with the county court and waiting for an official summons - or written court order to be issued.
If your tenant does not must meet all of the requirements outlined in their summons within the time frame required, a writ of possession will be issued to the sheriff. Then, an eviction will be performed by law enforcement officers within 24 hours.
Hire Professional Help
If you want to avoid these payment management headaches, hiring a professional property management firm is likely your best bet. They'll handle everything, collecting tenant payments and making sure that you don't wind up having to chase people down for money.
What's more, the right firm will likely be managing payments digitally, making your life a whole lot easier when it comes to taxes and accounting.
Rent Collection Made Easy
If you never want to worry about rent collection again, the solution is simple. Hire an expert property management company, and let them handle all that hard work!
The right team can help manage your investment properties, market your property for rent, find and screen tenants, handle property maintenance, and take over rent collection duties. Contact Verandah Properties or call 407-855-0331 to find out how we can help you. We have three convenient locations serving the greater Orlando area.