Roughly 1/3rd of all Utah households are rental households, making it a great place for landlords. Salt Lake City landlords in particular have an excellent place for their property and are unlikely to have many issues finding tenants.
But what do you do when rent collection is coming by and you're struggling? Tenants are late, some aren't paying, and you're having difficulty keeping your property management organized.
If you're curious about rent collection tips for Salt Lake City, we're here to help. Read on for five tips for efficient rent collection in Salt Lake.
1. Accept Deposits
One easy addition you can add to your collection strategy is to accept deposits. Most people won't pay their rent in cash, but if you allow them to, this can ease the burden somewhat.
Consider allowing tenants to put a deposit down on their rent in cash. Doing so will ensure you get some instant rental income while also providing excellent tenant payment solutions for your renters, helping you to attract more tenants.
2. Go Digital
While cash has its benefits, most people will want some way to pay online. Going to your rental office is time-consuming, and if the closest rent drop-off is miles away, it presents an enormous inconvenience for your tenants.
Providing a digital payment portal can help ease this burden on them. By doing so, you also make it easier for them to pay on time.
3. Impose Late Fees
If your tenants aren't getting their rent to you on time, you could consider imposing late fees. Late fees are extra charges that accrue when a bill isn't paid before its deadline.
Do your best not to make these extravagant, but don't make them so low that they're meaningless. Find a good middle ground that won't make your tenants feel abused, but will motivate them to pay on time.
4. Offer Early Incentives
Instead of late fees, what about a way to reward tenants who pay early? Early incentives would reward tenants who get their bills paid before the deadline.
You could offer a small discount on rent if it's paid a week or more earlier than your deadline. You also could allow a larger grace period on future rent if the previous month was paid early. Think of what makes the most sense for your team.
5. Consider Leniency
If you depend on your tenants to pay your bills for you, then leniency isn't always possible. You need their money to keep your lights on! But remember that roughly 70% of Utah is rent-burdened.
When there's room to do so, you should consider leniency on late rent. Doing so will make your tenants more appreciative and willing to work with you in the future.
Mastering Rent Collection
Rent collection can feel overwhelming, but Salt Lake City landlords should have no issues finding tenants who are easy to work with. Do your best to be an understanding landlord and be lenient with your tenants.
At Envy Property Management, we have more than 15 years of real estate experience. We focus on technology and efficient systems to provide value for our partners. Contact us today to see how we can help with your property management.
