Pay rent on time

Pay rent on time

As a landlord, it's absolutely vital to collect your rent payments on time each month. So what can you do if your tenants aren't paying on time? We've put together our top five tips for getting your tenants to pay their rent on time.

1. Clear communication

Communication is vitally important in all aspects of being a landlord - particularly so when it comes to rent payments. Make sure you're entirely clear about when the rent is due. You should also outline any fees or other consequences for paying the rent late. This will help to avoid tenants paying late simply because they weren't sure when their rent was due. You'll also help your tenants to budget for their rent: they should know exactly how much to pay and when they need to pay it.

2. Talk to your tenant about why they're not paying on time

Is it that they don't have enough money to pay the rent or that they've simply forgotten when the rent is due? Discuss whether changing the payment date or method would help. For instance, some tenants may prefer to make smaller payments on a more frequent basis. Asking your tenants to set up a Direct Debit or standing order will reduce the chances of them forgetting to make a payment.

3. Handle Late Rent Payments

It’s important to screen tenants, create incentives, add convenience, be consistent, and avoid leniency in order to encourage tenants to pay rent on time. Even if you do everything right and follow our advice on encouraging timely payments, there’s still a chance your tenants will pay late. Sometimes, it’s due to forgetfulness or lack of funds. Other times, it can be malicious. In our next chapter, we’ll provide guidance for how to handle late rent payments.

4. Report the status of rent payments to a credit check bureau

Credit checking bureaus now provide a service for landlords to report the status of rental payments. It's another strong incentive for tenants to pay their rent on time: they'll want to keep their credit score as clean as possible. You can also reward tenants who always pay their rent on time: they're rewarded with a better score which helps them to access credit.

5. Offer a discount for prompt payment

Consider offering your tenants a small discount for paying their rent on time. A small discount can provide motivation for your tenants to pay on time. It also benefits you by greatly reducing the amount of time you spend chasing payments.

If you follow these basic pointers, your first time renting will be a pleasant experience. The more you rent, the better you’ll get at spotting trouble and avoiding it as well. If you need help with rent out your home, remember the experts at Nimmadhi are here to assist. Happy Renting!