Owning rental properties in Chicago is a great investment that can supplement your income. Managing these properties and following through with all the landlord responsibilities isn't an easy task at times, however. There are many responsibilities that a landlord must keep track of, including rent collection.
As a Chicago landlord, you need to know how to collect rent from tenants to ensure you're making a steady income from this investment. Collecting rent can be challenging at times, but the guide below offers several helpful tips on how to do so.
Continue reading to start collecting rent payments without error!
Ensure Each Tenant Knows Their Rent Price
It's essential that each tenant has an understanding of their rent price each month. Every tenant should sign a lease agreement that states the price of rent for each month. Their signature on the lease prevents them from being able to argue the price.
Any other terms, such as when the rent is due each month, when it's considered late, late fees, and more should also be included on the lease they sign.
Have a Late Notice Policy in Place
If a tenant fails to pay their rent on time, then what are the next appropriate steps to take? How will you ensure you collect rent from them? Having a late policy in place that each resident signs will let them know what will happen if they miss a payment.
You can also then take the steps listed on the late notice policy without hesitation.
Set Up Online Payments
A good way to make payment collection more convenient for everyone is to set up an online payment portal. You can even consider giving the option to tenants to set up automatic payments, which will prevent them from forgetting to pay on time. Many tenants will enjoy being able to pay conveniently online.
If needed, then you can charge a service fee for any tenant paying online, so you can then pay the platform their fees.
Allow Tenants to Pay in Person
Aside from collecting rent online, you should also let tenants pay in person. The more available payment options you have, the easier it'll be for tenants to make rent payments. You can accept checks and money orders.
Most landlords won't accept cash due to the inability to keep records of payment. Make sure to have a dropbox available outside of the office for tenants who come to pay rent after hours.
Hire a Property Manager
Managing an entire rental property on your own is a lot of work. Keeping track of multiple tenants, their rent payments, maintenance requests, evictions, and other landlord/tenant legalities can be overwhelming for one person to handle alone. For this reason, it's ideal to hire a property manager.
A property manager will handle all of these responsibilities and more!
Do You Know How to Collect Rent From Tenants?
After reading through this guide, hopefully, you now have a better idea of how to collect rent from tenants. However, if you're in need of rent collection assistance and assistance with other landlord responsibilities, then contact Home River Group Chicago.
We offer leasing services, residential management, and more! Contact us today to see how we can help you.
