If you have a great property in Lakeland, Florida, you might be sitting on a gold mine. You can earn a rental income from it, and if you're lucky, you can turn this into a full-time business.
But there's one thing you must be aware of. Many cities across the US are seeing a high number of evictions - sometimes as high as 60%. So what does this mean to you, as a landlord?
You have to be steadfast with prompt rent collection. This is one of the most crucial methods to protect your investment.
Here's what you should know:
Screen Your Tenants
Before handing over the keys to just anyone, you want to ensure that you have the right tenants. If you screen tenants, you can find tenants who have a track record of paying rent on time.
You can inquire about a potential tenant's income. This lets you narrow down which tenants have a stable income and earn enough to cover the rent each month.
Make Rent Collection Simple
You want to offer a variety of options for rent payments. You can visit your tenants once per month to collect the rent in cash or check.
To make rent collection simpler, offer online payments to your tenants. You can use services such as PayPal or Stripe to create invoices for monthly rent payments.
With PayPal, you don't even need to create an invoice. Your tenants can send you the money whenever they have the funds.
You have to do your bit to make your tenants happy. This will ensure that they won't break the lease and always pay on time or early.
Impose Late Fees
An effective method for ensuring prompt rent collection is to charge a late fee. Make sure you speak to your lawyer about any regulations for Florida landlords regarding late fees.
As harsh as this can be, it's one of the best ways to ensure timely rent payments. You can also offer incentives to your tenants if they pay early, such as offering a discount for a future month, etc.
It's also crucial that you enforce the rules of your lease agreement. Sometimes, landlords won't enforce rules such as late fees out of sympathy for the tenant.
But in the long run, this can lead to consistent late payments. You must impose late fees and even take legal action if necessary. You might also want to buy landlord insurance to cover any costs in case you don't receive timely payments.
Succeed With Rent Collection
Now you know the importance of prompt rent collection to guarantee a successful rental business.
You should only lease your apartment to tenants who have a proven track record of making prompt rent payments. Make sure you also choose tenants who have a stable income.
You must also offer different ways to collect the rent. Impose late fees and make sure you enforce them. You can offer incentives for early payments.
All of this sounds like a challenge, doesn't it? Let PMI Arrico Realty and Property Management, Lakeland's top property manager, help you get started.