Landlord Problems: Collecting Late Payments

Written by admin on March 29th, 2011

As a landlord you will have to become accustomed to collecting late payments.

The fact of the matter is that you are going to run into tenants who do not get their payment to you on time. This happens time and time again, and you should be ready to deal with this issue before you ever even become a landlord.

Even if you have never had a problem with a late payment, chances are that it will come up at some point in time. The good thing is that collecting a late payment is not usually as hard as you may think.

Sure, you may have to put some time into this, but all in all you should be able to reach a resolution in the end.

The moment that you come across a late payment you will want to get started with the collection process. Although this may be a pain in your neck, if you want to get paid you should really start trying to collect the late payment right away.

The first thing that you should do is send a letter to your tenant letting them know that they are overdue on their bill. In many cases a tenant simply forgets to send the payment, and in turn ends up sending it out as soon as they receive the notice. When this happens, you can simply collect your money and forget about it then and there. But unfortunately, things do not always work out quite as easily.

If your mailing notices go unanswered the next step in the process is to try and get in touch with the tenant via the telephone. Give them a call and if you can get them on the phone explain the situation to them. In many cases a phone call will scare them into sending you the money right away.

Finally, if late payments begin to mount up you may want to look into evicting your tenant. Nobody likes to do this, but it is a part of being a landlord. If you want to make your money you will need to get rid of tenants who do not pay their rent.

Overall, collecting a late payment is not always the easiest thing to do. But in most cases you should not have many problems. Remember, if you do not collect your late payment or do something about it you are losing money month in and month out.

There are other answers to the problem of collecting late payments. You could offer a slight reduction for timely payments, to encourage late payers.

A letting agent although costly is another solution to this problem.

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