Getting tenants and HOA members to pay rent and dues on time can be quite stressful. There are systems that you can set up that can be beneficial to both parties for making timely payments. Gassen already has these systems in place to help you manage your property. Below are four tips that can help ensure that you receive payments on time.
1. Automatic Payments for Rent and HOA Dues
People can be very forgetful or lose track of time which can cause them to pay their rent and HOA dues late. Automatic payments will help eliminate this problem. The occupant will be able to set up payment through ACH debit or online bill pay for months in advance. Automatic payments will allow the funds to be deducted from the resident’s bank account and sent to you automatically on the set date.
2. Collection Policy for Residents
Have your collection policy clearly defined within the appropriate legal documentation. Having your collection policy documented will ensure that your client is aware of when payment is due, grace periods, where and how to make payments, and consequences of NSF payments and defaults. Be firm and uphold the policies that you and your residents have agreed upon in the beginning. Gassen can take care of all these property management details for you.
3. Consequences of Not Paying Rent or HOA Dues
Let tenants and HOA members know through a signed agreement that there will be consequences for rent and HOA payments being late. Some penalties that you can enforce for late payments are late fees, loss of use of community amenities, and being reported to credit bureaus. Be prepared to be firm and follow through with the consequences if payments are late. These consequences can be all that is needed to ensure timely payments.
4. Incentives or Rewards for On-Time Payments
So many times, we get busy focusing on the people who are not paying on time that we forget about the people who are paying on time. Set-up incentives or rewards for people who do pay their bills on time. After a set amount of time of the resident making timely payments, send them an Amazon gift card or a basket of some sort. Incentives and rewards are encouraging for the clients who are doing the right thing. Also, if it is time for a tenant to renew their lease, this could be the incentive that they need to sign a new lease.
Property Management in Eden Prairie, Minnesota
If you are having problems getting your tenants or HOA members to pay on time, try implementing one or more of the above tips. In the Twin Cities area, Gassen has systems set up to ensure that you receive payments on time. We offer services in Property and HOA management. Give us a call today to find out how we are here to help you. You can reach us by calling 952-922-5575, or you can message us on our contact page.