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Tip’s For Dealing With Delinquent Tenants By Winston Rowe & Associates
Even though it may be in your best interest to help ethical tenants through a rough patch, experience dictates that if your tenant launches a habit of late pays, it will get worse with time.
By: Staff Writer
If it happens to you, time is of the essence, and it’s important to have a well-conceived plan already laid out.
Adopt policies that make it easy to pay rent on time, and difficult to pay late. For example, accepting electronic payments, credit cards, or direct deposit make it easy to pay on time.
Stress the importance of on-time rent payments at leasing.
Send out an invoice with return envelope enclosed.
Make sure the rent due date is realistic (i.e. it coincides with when they receive their paychecks).
Diplomat or Enabler
Evictions are expensive and time-consuming. So is finding a new tenant. From this perspective, it is tempting to try to work something out with your delinquent tenant. Occasionally you’ll have a tenant who has genuinely experienced a temporary financial hardship, one that is resolvable, and it can be in your best interest to help them through their rough patch.
But here’s the hard reality: The majority of late paying tenants will do it again. Not paying rent is a big deal, and it’s in your best interest to make the tenant understand that.
Accepting payments late with no consequences, or accepting partial payments not only encourage late payers, but it can compromise your rights to re-take the property. The longer you allow a late payer to string it out, the more you risk becoming an enabler.
Be Prepared for Battle
Even though it may be in your best interest to help ethical tenants through a rough patch, experience dictates that if your tenant launches a habit of late pays, it will get worse with time. There is always the chance that your tenant is stringing you along intentionally, trying to live rent-free while they save money or search for another place to live. You need to know what your legal options are and be ready to take action.
Collect Your Due
Once a tenant account goes seriously delinquent, your likelihood of successfully collecting the debt drops precipitously. Therefore, it is crucial to aggressively pursue the debt with all means at your disposal. This includes submitting the debt to a collection agency and employing all legal means of collection.
When speed and experience are important and crucial to your apartment balding investing success, a principal at Winston Rowe & Associates is always available to speak with prospective clients. They can be contacted at 248-246-2243 or email them at email@example.com
Whether it's an initial apartment building purchase or a refinance they have the solution for you. Winston Rowe & Associates offers expert friendly service combined with years of experience and will work with clients to find the best solution that fits your needs.
If you would like to learn more about apartment building financing options from Winston Rowe & Associates you can check them out online at http://www.winstonrowe.com