Staying on top of rent collection is more important than ever, especially as landlords adjust to new rules and regulations.
With an increased need to keep cashflow fluid, late rental payments can cause unwanted financial distress and added administration.
The simple fact of the matter is many landlords have a buy-to-let mortgage that requires paying off every month, and the rent is what pays this bill.
Our recent poll to find out how many landlords had been affected by late rental payments showed that 46% of respondents had experienced delayed payments from tenants.
As the saying goes - prevention is better than cure, so Gordon & Co is sharing its top 5 tips for ensuring your rent is paid by tenants on time.
1. Make a direct debit mandatory - relying on a tenant to remember to manually transfer money to an account every month can easily lead to missed payments. Tenancies should be set up with a monthly direct debit as standard, ensuring an automatic transfer of funds and no need for reminders.
2. Ensure property maintenance is attended to - tenants who feel their rental property is poorly maintained may withhold rent, leaving landlords short. Although tenants do not have a right to do this, it can happen and staying on top of maintenance can prevent this action.
3. Keep a good dialogue with your tenant - if a tenant feels they can approach their landlord during the tenancy, they are more likely to let them know if they anticipate any difficulty in paying the rent. This gives landlords time to make necessary adjustments or arrangements.
4. Make sure your tenant knows when the rent is due - avoiding rental arrears can be as simple as sending the tenant a monthly reminder by text or email, prompting them when the rent should be paid.
5. Use a professional property management service - help is at hand for landlords who’d prefer not to involve themselves in the money side of a let. Gordon & Co offers landlords a comprehensive rent collection service. We collect the rent from your tenant, transfer the rental income to your account, provide you with statements of account and chase arrears in the exceptional cases where a tenant has fallen behind.
If you’d like to know more about Gordon & Co’s property management offering that includes our rent collection service, contact our lettings team today.
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