How to make your Tenant Pay their Rent!
How to make your tenant pay their rent? Here are some of the common ways landlords have used. It might come in handy! So read on!
Communicate
Emphasize the importance of paying on time. Ensure that both parties go over the lease agreement; specifically, those pertaining to rent, due dates, late fees, and the consequences of non-payment of rent. have your tenants initial each page of the lease agreement as you explain the rent collection process to ensure they comprehend these agreements.
After that, give a copy of the signed lease agreement to everyone who initialled it so they can keep it for future reference. You can ensure that your tenants understand their obligations and are not confused by creating a document that details each step in the rent collection process.
If you end up in court with a non-paying tenant, signed documents provide solid proof that you explained the process from the start.
Make Rental Discounts Available
Offer an early rent discount to your tenant as an incentive to pay their rent on time. Reward them with a small discount on their rent if they can spend it on or before the due date.
For example, allocate the tenants 3-5 days to pay before the monthly billing date, and they will be given RM50 off discount off rental fees. This, in turn, will encourage them to pay earlier.
This could even help you increase your lease renewal rate at the end of your tenant’s lease term, as tenants who receive discounts are more likely to want to stay with you.
Introduce Late Fees
Discuss the late fees with your tenant and clarify that late payments will not be tolerated. Late fees have varied restrictions based on the state/province, but it’s typical to impose a daily rate until the payment is received. By collecting late fees, it emphasizes the need for timely rent payment.
Setting the correct expectations with a renter and imposing a late fee regularly gives the message that the landlord is serious about getting the rent paid on time. If you’re granting a grace period, spell it out in the leasing agreement.
If feasible, avoid forgiving late fees to avoid the same tenant making multiple late payments.Consider a progressive charge schedule to ensure that you receive your rent, as well as any late fees, as fast as feasible.
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