Never having to chase tenants down for rent is a dream for many landlords. Not for our clients. For our clients, it’s a reality. Custom Realty’s process has proven to decrease the number of late and NSF payments, meaning our clients spend more time on the things that matter.
Here are 5 tips to help your tenants pay their rent on time:
- Make it simple. Encourage your tenants to give you post-dated cheques or set up automatic transfers.
- Enforce late fees. When you onboard a new tenant, make sure they are aware of the late fees and if they’re late, levy the fee.
- Provide clear instructions. When onboarding a new tenant, be clear on when the rent is due, how they should pay it (cheque, automatic withdrawal) and what to do if they will be late.
- Screen tenants carefully. Take the time before you sign on a new tenant to make sure they’re a good fit. Never skip the reference checks or their credit report.
- Work with a property management company. At Custom Realty, we put your property first. We carefully screen tenants, have a clear and detailed onboarding process and make it easy for tenants to pay their rent. We also provide on-site inspections, are available 24/7 and quickly respond to tenant concerns. Because our tenants are happy, our clients are happy too.
Here’s an example of how working with a trusted property management company can reduce your stress and increase your revenue.
We took over a self-managed low-rise residential building with 32 units that had fallen into a state of disrepair. The building was performing way below its potential, rents at 40-70% below market, and rents were rarely paid on time and often not all.
Recognizing that to ensure prompt rental payments, we needed to work on improving the living conditions, making it easier for tenants to pay their rent and find reliable tenants.
While our facilities team renovated three empty suites and completed outstanding building repairs, we immediately implemented a pre-authorization payment plan for tenants. We completed background and financial screening for all tenants. In addition, we implemented a regular cleaning and maintenance schedule, updated the interphone system, added security cameras, and introduced a streamlined system for tenants and prospective tenants by making forms and information sheets available online.
As a result of Custom Realty’s proactive approach, the rental property became a valuable asset and not a liability. With our streamlined systems in place, rents were paid on time, tenants enjoyed living in a clean and safe building, and reduced long-term maintenance costs.
In addition, our client realized an increased value in their investment. The building owner realized increased monthly revenue when the return on unit and common area renovations was over 16%. Rental payments went from 36% paid on the 1st of the month, 12% not collected to 100% of rents collected, 97% on the first of the month.
If you want to realize a greater return on your investment and reduce your stress, contact Custom Realty for a free consultation to find out if we’re the right fit for you.
Here’s what one tenant had to say:
I have lived in this building for 10 years. When I first moved into the building, it was run very poorly. No security, very sketchy residents. The building was visited nightly by police. I lived in fear and put a second lock on my apartment door.
In 2014, the building was taken over by Custom Realty. Inspections were done, security was a priority, repairs were done, an on-site caretaker was hired, painting to common areas was completed, new patios were installed. Before you knew it, the building was a totally different living experience. I felt safe and comfortable in my home.
In these different times, with Covid 19; I was very impressed with their action to help keep everyone safe. Sanitizer on every floor, cleaning and sanitizing of high touch points, safety protocols put into place quickly.
L.K., resident at a property managed by Custom Realty.