It’s probably one of the more vexing aspects of investing in real estate and owning rental properties – how to get those gosh darn tenants to pay the rent on time, every time. Following are a few ideas to either implement yourself or have your management company do it.
If you’ve been reading this blog or listening to The Creating Wealth Show with Jason Hartman for any length of time, you know we STRONGLY recommend that income property owners use a management company.
But whether you do or you don’t, here are two ways to trick, cajole, and encourage your tenants to be timely with rent payments.
1. Idea number one is to get as many of your tenants as possible on an automatic rent payment plan. These days, it’s easy to have payments taken out of accounts. This is the wave of the future. It might not be too long before landlords require an automatic withdrawal plan as terms of the lease. Talk about reducing headaches.
2. The second idea is to have a drawing every month for a $25 gift certificate that all “on time” rent payers will be entered into. It’s like a rent rebate for the winner. This works well if you have multiple tenants. Hey, twenty-five bucks is almost a quarter of a hundred. Most people get excited enough about that to pay their rent on time.
If you’re having trouble with late rent payments, maybe these ideas stirred your gray matter a bit. Get creative. Trick or bribe ‘em.
The Platinum Team
