How To Get Your Tenant To Pay On Time Every Time
You don't do this for free. And it's a nightmare having to chase money. So how do you get your tenant to pay on time, every time? Finn Simpson explains.
You don’t do this for free. And it’s a nightmare having to chase money.
So how do you get your tenant to pay on time, every time?
The first and most important step here would be in your tenant selection.
Find a good tenant with a solid rental history and this shouldn’t be an issue for you.
However, you often can’t tell this in the immediacy, and sometimes people can change - a good tenant can become an unreliable tenant.
What can you do to prevent the tenant from falling behind in their rent payments?
My 5 easy tips are below:
1. Give them clear instructions
How do they pay? Where do they pay? How much and how often? Give them clear, written instructions for how to pay their rent so you can eliminate the accidentally missed rent payment.
2. Tell them exactly when the rent is due
Make sure your tenant knows when the money needs to be in your account, not transferred. Your tenant needs to take into consideration bank transfer days, i.e. if the rent is due in your account every Friday, your tenant should ideally set up a periodical payment for every Thursday so that the rent is actually in your account on the Friday.
3. Show a zero tolerance for arrears
And get onto it fast. If your tenant falls behind even by 2 or 3 days, send them a message to let them know they are in arrears. It could have been a mistake, so don’t jump down their throat too hard - especially if they’ve been good up until this point. However, do not show any leeway with rent payments. You do not want to set a precedent and end up having to chase money every week. After all, the bank won’t be so nice to you if you miss your mortgage payment because of it.
4. Give them a reason why
This needs to be a reason that benefits them as a tenant. Make sure they understand that any arrears they incur are forever imprinted on their tenancy ledger. If their ledger has blemishes all over it by way of being in arrears regularly, it will make it difficult for them to secure good rental housing in the future. Highlight the importance of having a clean tenancy record.
5. Recognise good-paying behaviour
Let the tenant know that you value their good tenancy if they pay their rent on time every time.
A praise here and there can go down well, but offering a gift or a service (garden tidy up or something similar) to thank them for paying their rent on time every time will encourage them to keep doing it.
The last thing you want to do as a landlord is to chase money. There’s far too many other things going on in property investment and in the other aspects of your life to be stressing over missed rent payments.
Follow the above guide (after choosing the right tenant) as soon as the tenant commences to make this side of your investing life easier.