The challenges of managing rent collection on your own
Making sure that rent collection payments are on time and paid in full each month is an important task for any landlord managing a rental property. Rental income is the lifeblood of your investment, covering mortgage payments and regular maintenance, and providing a profit margin.
Many landlords face financial strain if rent is missed even briefly, as they may rely on rental income for personal expenses or need to cover mortgage payments themselves. This highlights the importance of:
- Conducting thorough referencing and credit checks before accepting a tenant to confirm they can afford the rent.
- Monitoring rent collection payments on the due date.
- Contacting the tenant immediately if payment is missed to determine the cause and take appropriate steps:
- Resolve bank issues or forgotten payments promptly.
- Arrange a payment plan if the tenant has short-term financial difficulties.
- Consider eviction if the tenant cannot afford the rent or is deliberately not paying.
Challenges for DIY Landlords
DIY landlords often face specific challenges in rent collection:
- Forgetting to check the rent due date, especially when busy or on holiday.
- Handling repeated non-payment legally and appropriately to enable potential eviction.
- Avoiding harassment and knowing legal limits in rent collection.
- Risking legal claims if tenant rights are violated or the collection process is mishandled.
Benefits of working with professional rent collection services
Working with a property management company like CR Real Estate can alleviate these issues:
- We ensure timely and full rent payments with established procedures.
- We will notify and follow up with tenants on late payments.
- We have expert property managers who effectively communicate and negotiate with tenants, detecting any issues early.
- We assist in evictions if necessary, ensuring the process is legally sound and efficient.
- We help end tenancies quickly to bring in new paying tenants.
While most tenants pay rent on time, the odd occasional issue requires immediate attention to avoid financial loss.
How to make sure tenants rental payments are on time
To help tenants make timely payments:
- Provide your bank details and request tenants set up a standing order for rent.
- Mark the due date to check payments with your bank.
- If rent is missed, contact the tenant and confirm the conversation in writing.
- For short-term affordability issues, consider a written and signed payment plan with the tenant.
- If persistent non-payment occurs, consider starting the eviction process:
- Serve a section 8 notice for rent arrears after two months and pursue a possession order if necessary.
- Alternatively, issue a section 21 notice with two months’ notice, potentially using an accelerated possession order.
After eviction, you may pursue overdue rent, though it might be more practical to focus on finding a new tenant quickly.
Contact us for professional property management
Managing property rentals, especially rent collection, can be challenging. Let our team at CR Real Estate handle it for you. We work hard to ensure timely rent collection payments and hassle-free property management, giving you peace of mind.
Call us today on 01634 570057 and experience stress-free property management.
Looking to rent out a property as a holiday let?
If you want to know more information about holiday lets please contact our local lettings experts on 01634 570057 or book a free online property valuation.
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