Since most Americans spend 30% of their income on rent, some late payments are to be expected. However, even if you charge a 5% late penalty, these tardy payments can disastrously impact your cash flow as a landlord.
Implementing the best rent collection strategies can help you minimize these impacts. Read on to learn some landlord strategies in DFW that will get money in your pocket ASAP.
Set Competitive Rent
Setting appropriate rental rates is the best way to ensure timely payments. You want to make the most money off your investment as possible while avoiding vacancy. You also want to ensure that the rent is affordable for your tenants so you don't contend with late payments.
Generally, landlords should charge an annual rent of 0.8% to 1.1% of their property value. If you own a home worth $150,000, you can collect between $1,000 and $1,750 monthly from each tenant. You can earn more income by:
- Splitting the property into multiple units
- Raising the rent over time for tenants who renew leases
- Adding new features and amenities that increase the property value
When you set fair rental rates, you find tenants who can already afford to make payments. This minimizes the chance of future late payments and boosts lease compliance.
Send Out Reminders
Email and SMS reminders about due rent can help tenants remember to pay it. Jogging their memory and including a payment link makes them more likely to make an immediate payment.
Sending out rent payment reminders also sets the expectation of on-time payments and he's you build a positive relationship with tenants. Plus, it leaves a paper trail to show that you've told the tenant what you expect in the past. This is one of the most important Dallas rental tips since it can be beneficial if you land in legal hot water.
An app can also alert landlords and property managers to late or unpaid payments, allowing everyone to handle the issue quickly.
Use Integrated Rent Collection Tools
The best property management Dallas professionals offer integrated dashboards where tenants can:
- Communicate with landlords
- Submit maintenance requests
- Resolve issues with the property
- Pay rent and fees on time
These tools make it easy for tenants to pay their rent in just a couple of clicks. The process makes the payment process quick and efficient on a smartphone.
Encourage tenants to set up automated rent payments. Make the process easy on your all-in-one property management application.
When you do, property managers in the Texas rental market can collect rent automatically and easily, allowing them to send you the money faster.
Work With Property Managers in Dallas-Fort Worth
Now that you know how to employ the best rent collection methods in DFW, it's time to work with a top property management company in Dallas.
PMI DFW Properties is committed to helping landlords implement efficient rent payment strategies with an integrated and accessible dashboard. We're also excited to help you determine your investment's value and set fair rental rates. Request a free rental valuation of your property to learn how much passive income you can make!
