Property Management Blog
What is a Good Tenant Rent Collection Policy? Property Management Orlando
Establishing a clear and consistent rent collection policy will help you avoid late rental payments and endless tenant excuses. There are a couple of things you can do to ensure that your tenants understand the importance of paying rent on time.
The grace period is something that most landlords incorporate into their rent collection policies to allow tenants who cannot pay on the first of the month to pay a day or two later without penalty. When you’re establishing a grace period, make it short and strict. Two or three days is usually the maximum you want to allow with a grace period. Many landlords allow up to five days. Just remember that the longer you wait to collect rent from your tenants, the longer it will take to remove a problem tenant. So make your grace period short and strict.
Penalties and consequences need to be included in a rental collection policy so tenants understand what will happen if rent is paid after the due date and the grace period. Late fees should be firm but fair. In the State of Florida, they are not regulated, but judges do not like to see abuse. Don’t be afraid to require a late fee, but make sure it’s fair and that you are consistent in collecting in.
Collecting Past Due Rent
There are several options available to landlords when tenants do not pay. These things should be included in your rent collection policy. You can send the payment history to the credit bureaus, you can send the tenant to collections, and you can file for eviction and remove the nonpaying tenant. Ultimately, you can sue the tenant for money owed and hope that someday they will pay that judgment. Tenants are human and they go through hard times like everyone else. Be fair, strict, clear and consistent. With a good rent collection policy in place, you will avoid any financial and legal burdens. If you have any question about collecting rent from delinquent tenants, please contact us at RentCare Property Management.