Collecting Rent Advice/Help.

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Good evening.

I am a landlord with a few rental properties and I am seeking some advice from other landlords on how they collect rent from their tenants in a timely manner. My lease currently states that rent is due on the first of the month and is late after the fifth of the month. Of course about 8/10 of my tenants translate this to mean rent is due on the fifth. When the fifth rolls around I get a few more rent deposits, but around 5:00 PM there are still two or three outstanding rents.

This is when I send a text message or call and ask where the rent is at. This is when I get the excuse as to why its not paid and when it will be deposited. Most of the time they will uphold there end of the bargain and deposit it when they say they will.

So what is really bothering me is, the fact that on the fifth of the month(due date) I am having to chase my tenats down and ask where the rent is. I have asked my tenants to please give me a heads up if they will be late but rarely to I get any warning.

Can anyone please help me with a better way to go about collecting rent without seeming like to much of a pushy landlord. I believe I have been able to keep my tenants happy by showing them respect and being understanding when they tell me they will be late, but frankly I am tired of getting all worked up on due date wondering who will pay and who wont!!!

[Jack Bobeck]

Aaron C. Run your business like a business. If your lease agreements call for penalties after the 5th, send your tenants an invoice for the late fees, make a copy of the late fees and make sure they understand that monies collected go toward late fees 1st and rents 2nd. So if by next month the rent is paid on the 1st, but the late fees have still not been paid, they get more late fees for next month. I have 13 properties, all my "clients" know I am in charge.

Someone is always in control of your business. If you are not, the animals in the zoo are and we all know that nothing good comes from animals in the zoo being in charge.

Jon Holdman's idea is a good one on offering 2-3 percent discount if paid on the 1st. Jeffrey Taylor, Mr. Landlord, has a great program and has an online service that you can use to process all payments so you never see the checks. You can also use Quickbooks or Peachtree to send your tenants a late notice in WRITING so they see an invoice when they are late. Again, it is a business. Run it like a business!

When you think you are pushy, ask yourself, would the bank give me a week to pay without sending out a threatening letter?

Jack Bobeck