Are you planning to invest in a rental property in Ventura, California?
With an average apartment rent of about $2,700, there's no doubt you're looking at good returns. As long as you keep your property occupied throughout the year, everything points to a successful investment.
One of your primary responsibilities as a landlord is to collect rent on a monthly basis, or as agreed with your tenants. Rent collection, however, can turn out to be a nightmare, especially when you have tenants who don't pay up on time.
If you need help making rent collection a breeze, you're in the right place. Just keep reading!
Include Rent Stipulations in the Rental Agreement
It's standard practice for landlords to prepare rental agreements. Prospective tenants must read and sign the agreement, and abide by the terms and conditions once they move in.
These agreements touch on a range of issues, including each party's responsibilities. Ensure your agreement isn't missing the rent stipulations. It should clearly state when, how, and where tenants will make rent payments.
Avoid verbal agreements at all costs. Without a written and signed agreement, don't be surprised if a tenant starts to deviate from what you had agreed by mouth.
Provide Convenient Payment Options
There are several payment methods in today's modern world. Tenants like the convenience of having multiple rental payment options to choose from.
Traditional methods like cash, money order, and checks are still hot favorites among landlords, but digital payments are the most preferred options for tenants, especially the younger generations.
Accepting online payments will go a long way in improving the tenants' rent-paying experience, which reduces instances of late payments. You don't want a tenant to say their excuse for paying rent late is that they did not find time to go to the bank and make a cash deposit.
Understand State and Local Laws That Affect Rent Collection
There are state and local laws designed to protect both tenants and landlords. This means you need to have a good understanding of these laws and how they can affect your rent collection duty.
Take late fees, for example. Although California law allows landlords to charge the fee, it must be reasonable, and the lease agreement must contain this provision. The goal is to ensure the tenant knows how much fees they'll pay should their rent be late.
You also need to be familiar with the laws and regulations on tenant eviction, relocation fees, and rental increases.
Collect and Act on Tenant Feedback
Don't be the kind of landlord who only shows up when rent is due. Tenants can be a pain, sure, but it's not every day that they have complaints. Sometimes they want to give you suggestions on what you can do to make their tenant experience better.
For example, they can suggest that you start accepting cryptocurrency, a new-age form of payment.
Collecting and acting on tenant feedback can make rent collection much easier.
Let Property Management Pros Take Over Rent Collection
Rent collection is a seemingly simple task, but as you get more tenants, it can quickly become complex. There are laws, regulations, and best practices you must observe - all of which can be overwhelming.
This is why you should turn to a proven property manager for all your property management needs. Contact us at Rent 805, and let's help you make your real estate investment a success.
