I do not charge them or collect the money so I'm out of the equation.My 2 cents

We will keep you posted on the progress of the extension as the process moves forward."

Kick him money on the re-sale or structure the note so he collects interest should you choose to keep it as a rental. 

I believe that first, you need to determine a plan on what type of properties you collectively desire to invest in, and how.  

This weekend, I collected some FSBO sign information for prospecting. 

If you do, then the first one that gets their hold deposit in gets it.I think it helps do two things. 1) Creates a sense of urgency for them to make a decision.2) Helps prevent me from losing good tenants because I am able to act fast.I don't like the idea of collecting applications for a period of time.The risk there is that the good ones might be accepted somewhere else.

We literally "scrapped" for our home improvements, collecting cans out of people's recycling bins and at a nearby college.

The answer might be a bit extensive but if someone can explain it in a summary, I'd appreciate it. 

Do you have any advice around how to most effectively collect rent on late tenants?

Or, perhaps they own the property free-and clear, but want a fast sale and don't need all their funds at closing.Loan professionals are mostly in business to collect fees (interest, points, application fees, etc.), whether you make money on your deal or not; sellers like those above just want their problems fixed.