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Collection of rents is arguably the most important issue related to real estate investment and property management. It's usually difficult to make mortgage payments, pay the property taxes and insurance premiums, and cover all the other expenses of income property ownership when tenants fail to pay rent.
Having "good" tenants means (1) both selecting good ones in the first place and (2) retaining good ones for as long as possible. Successful landlords know the value of taking the time to adequately screen and properly select applicants even if doing so results in a longer vacancy period.
At present, it is compulsory for you to adopt some services before hiring someone. One of the important services you have to adopt is background check which is procedure for looking up and compiling criminal records, commercial records and financial records of the person. Aside to this service, you can also catch services like Reverse cell phone number, online people searches, etc.
Landlords should have defined policies and procedures regarding late rents. To avoid claims of discrimination, these policies and procedures must be equally applied to all tenants. By discussing rent payment obligations with tenants at lease signing, via a move-in letter, and in any newsletters, the landlord can reinforce the policies specified in the lease agreement.
A good lease agreement and policies and procedures by themselves are not enough. A landlord must thoroughly understand his lease agreement and apply the lease terms uniformly and firmly to all tenants who have signed that lease agreement. By enforcing the rules, the landlord can reinforce the consequences of the tenant failing to meet his obligations.
Payment of rent, late charges, and legal costs can be accepted at any time, even after obtaining a judgment. From the tenant point of view those costs are much less than the costs of moving and a judgment will affect his future housing choices. Even if the matter proceeds to obtaining a judgment, a paid judgment on the tenant's credit report is better than an unpaid judgment. From the landlord point of view, it is usually advantageous to keep the tenants rather than have a vacancy unless it is desired to get rid of those particular tenants.
Additional discussions regarding the issues discussed in this article are found in our eCourses and/or our Mini Training Guides, in particular our "9 Tips For Better Rent Collection" Mini Training Guide.
Collection of rents is arguably the most important issue related to real estate investment and property management. It's usually difficult to make mortgage payments, pay the property taxes and insurance premiums, and cover all the other expenses of income property ownership when tenants fail to pay rent.
Having "good" tenants means (1) both selecting good ones in the first place and (2) retaining good ones for as long as possible. Successful landlords know the value of taking the time to adequately screen and properly select applicants even if doing so results in a longer vacancy period.
At present, it is compulsory for you to adopt some services before hiring someone. One of the important services you have to adopt is background check which is procedure for looking up and compiling criminal records, commercial records and financial records of the person. Aside to this service, you can also catch services like Reverse cell phone number, online people searches, etc.
Landlords should have defined policies and procedures regarding late rents. To avoid claims of discrimination, these policies and procedures must be equally applied to all tenants. By discussing rent payment obligations with tenants at lease signing, via a move-in letter, and in any newsletters, the landlord can reinforce the policies specified in the lease agreement.
A good lease agreement and policies and procedures by themselves are not enough. A landlord must thoroughly understand his lease agreement and apply the lease terms uniformly and firmly to all tenants who have signed that lease agreement. By enforcing the rules, the landlord can reinforce the consequences of the tenant failing to meet his obligations.
Payment of rent, late charges, and legal costs can be accepted at any time, even after obtaining a judgment. From the tenant point of view those costs are much less than the costs of moving and a judgment will affect his future housing choices. Even if the matter proceeds to obtaining a judgment, a paid judgment on the tenant's credit report is better than an unpaid judgment. From the landlord point of view, it is usually advantageous to keep the tenants rather than have a vacancy unless it is desired to get rid of those particular tenants.
Additional discussions regarding the issues discussed in this article are found in our eCourses and/or our Mini Training Guides, in particular our "9 Tips For Better Rent Collection" Mini Training Guide.
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