How to Make Sure You Get Paid Your Rent Each Month-On Time!

The key is to make it easy for your tenants and tenant purchasers to pay you rent each month. The easier it is for them, the more certain you are of getting your rent. Here are four ways to make it easier for you to get paid your rent each month.

1. Payroll Deduction/Direct Deposit. Why wait for your tenants to get their funds, deposit their paycheck, and then pay you? Cut out the middle man! If your tenant works for a company that will allow it, set them up on payroll deduction/direct deposit for their monthly rent.

2. Auto Debit. Next in line is an automatic transfer from their checking or savings account to your bank account. Not only does this mean that you'll get your rent on time-automatically-but it also will instantly let you know if there is a problem. No waiting for a week or longer to have your bank notify you that a check bounced. You can go online and make sure the transfer happened and take immediate corrective action if it didn't.

3. Preaddressed Monthly Rent Envelopes and Payment Coupons. Make it easy for your renters to send you the rent each month. Give them preprinted envelopes and payment coupons to include with their check each month that lists the rent amount and clearly states who to make the check out to. While this seems obvious or overkill, my experience has shown that it significantly increases getting your rent on a timely basis.

4. Have a backup plan. If your tenant doesn't pay you by 5:00 P.M. on the first when the rent is due, I suggest you have an automated process in place to quickly take action to get your funds. I call this process your "Late Payment Policy and Process." This process should spell out a timeline of what actions you or your staff will take, on which day, all the way through the eviction process. If your tenant doesn't pay, immediately work with your tenant to get your funds. Help them problem-solve to get your rent.

And at the same time, your company must proceed with the eviction process. Sympathize all you want, but the eviction process must run its course until you either get paid or regain possession of your property. The bottom line is that if your business is on top of the rent collection process, most other parts of your tenant relationship will go much more smoothly.