How to Come up With & Collect Rents for Your Property – Our Guide

As a landlord, your tasks as part of property management include setting a rent price and collecting the money from your tenants. However, failure to set up a proper plan to do both tasks can quickly mean that you could lose money. For this reason, if you have not thought about a strategy to come up with and collect rent, you should start immediately.

If you are having trouble going about this, here are a few factors to consider when it comes to renting:

 

Determining your rent price

 

So, how do you figure out how much you should charge per month for your tenants? You need to step back and look at what is going on around you. You need to be quite knowledgeable about what other landlords are doing, and why they have settled on their rents.

However, as a good rule of thumb, your monthly rentals can be approximately one percent of the total value of your home. Then again, your objective would be to rent the rooms out within at least a month. If you find that your rent prices are not attracting anyone, you may have to lower it.

 

Collecting the rent

 

Now when it comes to collecting rent, you are given a few methods to go about it. For example, you can manage your rent as a cheque, direct debit, or in cash. Of course, payment methods, such as debit, are a lot faster for you and are the least costly. Offering multiple options for your tenants will further increase your chances of getting paid since they are going to use the most comfortable method.

That said, you can always indicate what kind of payment methods you do not want. For example, you might have had a bad experience with cheques, where the tenant might have given the excuse that the mail never arrived.

 

Dealing with nonpayers

 

Sometimes, you will run into tenants that either pay late or do not pay at all. How do you deal with those kinds of people?

For example, you might run into a bounced check. If you do not know what that is, a bounced check is denied because the account holder does not have the funds to cover the amount. This is a signal for you that your tenant is at a high chance of getting evicted, and you should ask your tenant to use another payment method from then on. If they fail to pay afterward, then eviction is at hand.

Note that some tenants pay, although they often pay late. You must address this right away by reminding them to pay online. Of course, you can still give them some leeway, but if they keep it up, you will find that they will pay later, then later, then even later. Fixing this early on by putting in late fees or any other action can help remind them that it pays to cover their rents early or on time.

 

Conclusion

 

When you put effort into setting up your rental price and making your rent collection right the first time, you will get your property rented out faster. You will also have tenants that reliably cover their payments on time. Opt for property management services if you need professional help with collecting rents for your property!

Fed up of being unable to collect rent on time? Contact us at Quest Real Estate for the utmost property management in Jacksonville. We’re here to help!