Owning a Detroit investment property involves keeping on top of tenants and rent collection. Without a steady stream of rent, you won't be able to stay in business long.
Paying rent should be an easy process for your tenants to help them deliver payments on time each month. When you partner with Own It Detroit as your Detroit Metro property management company, you can be assured that the rent collection process is simple for renters to maintain your cash flow. Here's why on-time rental collection is important and how Own It Detroit makes it happen!
Importance of Timely Rental Payments
Collecting the rent on time is vital to maintaining consistent cash flows and ROIs for your rental properties. Here are four reasons collecting the rent on time is essential for long-term success as a property owner.
1. Keep the Budget Balanced
As an investment rental property owner, you have a budget you need to adhere to. Your investment properties have mortgages and associated expenses, like insurance, taxes, and utilities.
However, if the rent does not come in on time, it can throw off your budget plan for that month. On-time rental payments give you the consistent cash flow to pay all ongoing expenses for a property on time — without dipping into your savings or using a credit card to cover the bills.
2. Ensure Things Don't Escalate to Eviction
Sometimes a late payment can become more than just late. For example, if a rent payment is more than 30 days late, it becomes a bigger problem. The situation could escalate until your renter misses several payments as a significant lease violation.
If the situation escalates to an eviction, you have an even greater loss of money. An eviction is a hassle and can be costly. However, if you have an easy payment system in place for tenants to make the rent payment, you may be able to reduce the instance of late or missed payments (and ultimately avoid some evictions).
3. Maintain ROI
Your ROI takes into account the rent you have coming in and the expenses you have going out. When rent is late, and it causes you to be late on bills, there might be added fees, late charges, or interest on your bills. These added costs will sink your ROI.
4. Reduce the Amount of Work to Collect Rental Payments
When people don't make their rent payments on time, you can't just ignore it. You have to follow up with them and enforce the lease.
Sending written or electronic communications to remind renters about their late payments adds work you don't need to have on your plate.
Online Payments Eliminate Late Rental Payment Excuses
People who are late paying rent may have many excuses for doing so. They may say things like:
I didn't have a stamp.
I was busy and couldn't make it to the office.
I was sick.
I had to work.
I was out of town.
I needed to wait for my next paycheck.
One of the best ways to eliminate these excuses is to offer online rent payment options. Being able to pay rent from anywhere through a secure online portal means renters no longer need a stamp, don't have to stop by the office to drop off a check, and should never miss a payment due date!
Rental Payments Made Easy
Another excellent way to make rent payments easier is to hire a Detroit property management company. With the right property managers to assist you with processing rental payments, you'll see an improvement in your on-time rental payments.
The best way to eliminate excuses and give tenants the gentle nudge they need to make timely rental payments is to offer a variety of ways for them to pay. At Own It Detroit, we make paying rent accessible and easy by offering several ways for your tenant to make the payment.
There are at least 10,000 locations in Detroit at which your tenant can quickly and easily make a rent payment. Any place that has the capability of processing a money order can accept your rent payment through Own It Detroit. This includes places like:
A Secure Tenant Portal
Own It Detroit has a portal for tenants to access their rent information. They can log in securely and make a payment wherever they are, any time of day or night.
There are always traditional methods for making rental payments. Tenants are welcome to stop by the Own It Detroit office and make their payment. They can also mail the rent check to the office.
However, this method should be considered a backup or secondary method for renters to pay rent. When they pay rent online, they automatically receive credit.
Work With a Detroit Metro Property Management Company to Improve On-Time Rent Collection
Ready to improve your on-time rent collection? Collecting rental payments on time each month improves your cash flow and ROI! Let Own It Detroit help. Reach out to learn more about our property management services, including rent collection.
Learn more about the property managers you need for long-term success! Download our free "Guide to Finding the Best Property Management Company in Detroit."