Extracting Timely Rent Payments From Tenants Is An Ongoing Challenge For Many Landlords

Category: Finance, Real Estate.

Extracting timely rent payments from tenants is an ongoing challenge for many landlords.

Whether your tenant is facing financial hardship or is just too disorganized to make timely rent payments, the chain of events that is set in motion when one, or even more, two months rent are missed hurts everyone. Year after year, surveys reveal that non- payment of rent is one of the biggest headaches that those of us in the property management business face. The late notice is the landlord s best line of defense in the battle against delayed rent payments. Here are a few tips to help you use late notices in a way that will maximize your rent collection rate. When used properly, this humble little document can significantly increase the chance that your tenant will pay on time, every time. Check your state and local statutes. As a starting point, research state and local laws thoroughly, and then develop your own late payment notification system based on the results of your investigation.

Virtually every state- - and some counties and municipalities- - have unique laws that set forth the legal when s, whys, and how s for late rent notices. If you re unsure where to look to find this information, chat up a local landlord in the know, or consult a real estate attorney. Better yet, explicitly describe the rent payment procedures and consequences of late or missed payments in the lease itself. Explain the rent collection process at the time of lease signing. Well before the first rent payment is due, your tenant should have no doubt in her mind that you demand timely rent remittance and that you will pursue all collection avenues to the fullest extent possible if payments are not made on time. Most experts agree that your first late notice should go out the day that the rent payment becomes overdue.

Don t wait too long. For example, if the lease agreement states that rent is due on the 1st, your late notice should be dropped in the mail the morning of the 2nd. Supplement written notices with phone calls or in- person conversations. This will initiate the paper trail of documentation that most states require before formal collection proceedings can be started. From a legal perspective, written notices are of primary importance. Remember to maintain a detached, professional tone and limit your discussion to a factual explanation of the consequences of late payments and the possible escalation of the case if full payment is not remitted. But experts say that the most effective collection technique is one that combines both written and spoken communications.

Continue to send additional late payment reminders as long as the balance remains unpaid. If you re already signed up as an EZ Landlord member, you have a choice of many different late notices to use, depending on the duration of the delinquency. As the situation escalates, the intensity of the rhetoric in your late payment notices should increase, as well. We also have a form to establish the terms of a payment arrangement if your tenant has agreed to work with you to pay off the balance. You have a right to collect rent on your property. If the balance due remains unpaid, don t back down.

Your rental property is your business, that business is, and without income more vulnerable to failure. As a landlord, late rent notices are your best defense against the headache of delayed, and missing payments, slow. If your tenant has failed to hold up his end of the lease agreement, don t hesitate to seek out all of the collection avenues that are available to you, up to and including eviction. Just be sure to use these tools wisely and effectively in order to maximize your collection rate. Whether your looking for the best Rental Agreement or great Late notices, www. ezLandlordForms. comoffers professional landlord forms that you can create online and print right from your home or office.

Read more...

We Had To Auction The Property As A Single Family Home - Finance and Real Estate Articles:

Buying foreclosed properties presents an opportunity for investors as well as someone looking to purchase a home, or lot on, condo which to build, for their personal use.

CAPITAL GAINS TAX - Edith Spratling about Finance and Real Estate:

There are four main taxes involved in any property sale and purchase transaction These taxes are: The transfer fee which is payable to Land Registry Office The capital gains tax which is payable to the Tax Office The VAT( KDV) which is payable to the Tax Office or to the vendor The Stamp Duty which is payable to the Tax Office. As a general rule, capital gains tax is payable by the vendor and the transfer fee and Stamp Duty is payable by the purchaser, although this can always be varied by the parties by an express clause in the Contract of Sale.

This Is Causing Supply In The Rental Market To Tighten Up - Jamie Garnett's Finance and Real Estate blog:

Over the last few years financial institutions were giving out many mortgages without much concern to the purchaser s credit history.