Every landlord would love to have tenants that pay their rent on time. But that’s not the case with most tenants. Some tenants would make late payments or fail to pay their rents over an extended period.
Others would make their payments in installments, making it hard for the landlords to meet or balance their financial needs. Most would be citing various reasons and excuses as to why they make late or no payments.
The good thing is, as a landlord, you can always help boost your tenants’ on-time rent payment if you follow the right rent negotiation tips.
Here are some of the best negotiation tips to consider:
Send a rent reminder
It’s common for landlords to assume that their tenants aren’t paying them because they are using the money allocated for rents for other reasons: like sending their kids to prom or paying some of their bills first.
However, that may not be the case with all your tenants. Some may not have paid their money because they are overwhelmed with other duties and forgot to check the dates and times for payment.
So, sending a reminder helps keep them updated on rent due dates. You can send them a reminder through emails, texts messages, or a simple call. You may also have a reminder app and automatic rent payment reminder services that constantly remind your tenants when the dates are nearing.
That said, choose the best communication medium for sending rent payment reminders. Often, a channel that most of your tenants are well conversant with is the best.
Issue a late rent notice
If your tenants have missed a payment or have made a late payment, sending a late rent notice should be your first step in collecting your rent dues.
Besides, it’s a formal way to notify your tenants that they have overstayed with rent. Even better, it would help establish a history of any late payment and your efforts to collect the rent, especially if you wish to evict the tenant in future. Or should the matter be taken to court? Also, it may act as a dialogue initiator in the situation that there is a miscommunication.
Consider sending a late rent notice to your tenants after the due dates and the grace period has collapsed. Ensure the notice includes the total amount of money the tenants owe you plus any late money.
Find out your tenants’ reason for late payments.
It may be hard to decide if you don’t know what is happening with your tenant. So in case of late payment, find out their reasons for that. Maybe they had an emergency health problem that is just a one-time issue.
Provide payment options for your tenant
Your tenant may have a late payment, but they can qualify for government assistance like the Covid-19 relief programs.
Advise them to seek or familiarize themselves with rent relief programs by the government. If they get such relief, your tenants can avoid the late payment.
Learn the laws of partial payments
Different states may be having other laws regarding partial payments. Accepting partial payments may relinquish your right to evict your tenants: though not applicable in all states. That said, check your state laws on partial payments before you encourage partial payment.
Make a late rent payment agreement.
As a landlord, you have to ensure you document every service, payment plan, or waiver you give to your tenant. The best way to do that is through a rent payment agreement. It would help confirm your arrangements in the event of collecting your rent or payments.