When residential property developers set up their rental property in Australia, they desire that they get a return on their investment over time. However, owning and running property is not a smooth road to walk and are likely to get hiccups along the way.
Late payments are one of the things that no property developer wants to deal with; but what can you do to minimise instances of late rent payment?
1. Make your screening process stricter.
If multiple of your clients are having issues with late payments, there are chances that you are missing something in your screening process before taking in tenants.
Involve strategies such as calling previous landlords, stating a minimum income for the tenants, and confirming the employment details of your tenants.
2. Set a due payment date.
It is not enough for tenants to know that they need to pay rent. State a specific period of the month by which all tenants should make the rent payments. It is best if the date would be within the first week of the month to accommodate individuals with varying pay dates.
3. Induce charges on late payments.
Now that you have a date that the rent should due add a clause that indicates any delay in making the payments attracts an extra cost. That cost should be a fraction of your rent, and you can charge the sum depending on the duration of the delay.
4. Introduce a reminder system.
Some individuals might get busy with life and forget they should be making rent payments. Utilise the benefit of technology and have a reminder system in the form of a text message, email, or call. The reminders will keep your tenants thinking of a pending payment to make.
Do not deal with late payments when you can take up the measures mentioned here. Late payments over weeks or months can turn into huge debts that minimise the returns you should be getting on your investment in Australia.
You could choose to hire residential property developers to handle the management of your property for early payments.