In the Pursuit of Passive Income
People from all walks of life choose to invest in real-estate and embark on a career as a landlord. Perhaps you're setting out to build the next real-estate empire. Maybe you want to find something to do with your Carlsbad area starter home. Either way, you won't get anywhere without a regular rent check from your tenants. Sometimes this is easier said than done, primarily if you rely on the old fashioned "check in the mail" method. So what are some things that you can do to keep the money flowing? It all starts with your Carlsbad property rent collection.
What Can Go Wrong?
You can handle a lot of rent-related issues on your own if you're willing to deal with the excuses and headaches that will inevitably follow. Be prepared to hear anything from "I lost my job" to "I swear I put the check in the mail." As excuses aren't legal tender, you can do a few things to try to proactively reduce the number of times you encounter these sorts of issues.
Improve Your Screening Process
Improve your tenant screening process. If you can get better about placing the right tenants into your property, you can reduce (but probably not eliminate) late rent payments. If your process is pretty airtight, you may see less improvement, but if you're loose with your tenant placement, this can be an area for improvement.
Communicate Clearly
Communicate often with your tenants. Speaking regularly with your tenants and being clear about your policies can help in a couple of ways. You'll be able to establish firm boundaries and expectations which can help if a tenant assumes that you'll be lenient or flexible. Additionally, you can keep up with the pulse of your tenants' lives and get a better sense of when problems might arise. Getting comfortable with digital means of communication can be a good way to address issues. It has the added advantage of keeping everything in writing.
Easy Payments, Happy Tenants
Make it easy to pay rent. Easy payment can mean allowing multiple methods of delivery or online payments. The easier it is for your tenants to pay, the more likely you are to see regular and consistent checks. Allowing online rent payment can be a great move, especially if tenants can set up an autopay feature. You'll typically see money arrive faster with no need to travel by mail, and an online payment option will eliminate many excuses for non-payment.
Set Boundaries—Then Enforce Them
Enforce your rent payment policies. It can be tempting—especially when you have built a relationship with a tenant—to accept excuses for late payment "just this once." You are free to use your best judgment if you feel that a tenant has genuinely fallen on hard times. Just be aware that you establish a precedent if you aren't consistently firm. If you think that you want to forgive a late payment, it's advisable to do so only once. A best practice is to be clear about payment terms in the lease and enforce your penalties across the board.
Hire Someone to Collect for You
Hiring a Carlsbad area property manager to handle your rent collection efforts can be a good move. You can let go of the need to track when checks have arrived (and from whom). Even better, you won't have to field another uncomfortable phone call or tension-filled visit. Your property manager will handle the process seamlessly for you, dealing with late payments and problem tenants behind the scenes. You can watch the rent come into your bank account without the headache of chasing it down yourself. An expert property manager can also be a significant help on the technology front. As they support many landlord-partners, they'll have the technology infrastructure and support systems in place to handle online payments. You can avoid having to act as your own IT department.
Keep an Eye Out for a BRE Number
As a California real estate investor, when you deal with any company or individual in a professional capacity, look for one with a BRE number. This number means that the California Department of Real Estate has licensed them, and they require this license for nearly any sort of real estate transaction in the state of California.
A BRE number is essential when choosing a property manager to handle rent collection. California requires a license for property managers who collect rent and do not live on the property. A Carlsbad area property management company that is licensed by the Department of Real Estate will be able to support you across the full range of your needs. You can rest more comfortably knowing that the state licenses the property manager you chose. They'll have to meet licensing requirements and are accountable to the DRE for keeping their license up to date.
Bring in an Expert Property Manager Local to Carlsbad
Rent collection is a significant part of real estate investing. Consistent rent payments are what will allow you to get the most out of your investment. Rent collection may be something you can handle on your own. If you find the process frustrating or want to leave the headaches behind, reach out to an expert property manager for help!
RainTree Property Management offers many services that can help ensure your tenants are positioned to pay on time. Tenant screening, rental price analysis, and rent collection services are all available at different pricing plans. RainTree accepts a variety of payment methods ensuring that you'll get your money quickly through our expert use of technology. If these are services that interest you, reach out to us! Let RainTree Property Management put our skills to work for your investment.
