Introduction
Late payments are a major challenge for property managers and owners, causing financial strain, legal issues, and reputational damage. Without rental payment reporting, these problems can escalate.
The Problem
Late payments consume time and resources and can harm your business. John, a property manager, faces frequent late payments despite his good relationships with tenants. One tenant, two months behind, cites job loss as the reason. Managing late payments involves:
Contacting Tenants: Phone calls, emails, and certified letters.
Securing Commitments: Difficulties arise with financially strained tenants.
Posting Notices: Required by law and disruptive.
Evictions: Costly and time-consuming.
These issues can damage a manager’s reputation and lead to lost income. For John, the eviction process results in significant expenses and higher turnover costs.
The Solution – Lease Guarantor Payment Reporting
Reporting the lease guarantor’s monthly payment information can reduce late payments, improve cash flow, and reward on-time payments by the company or guarantor. By reporting these payments to credit bureaus, the guarantor can enhance their credit score, facilitating the process of securing loans and establishing business credit.
After implementing payment reporting, John experienced decreased late payments, improved cash flow, and better tenant credit scores. This approach proved beneficial for both John and his tenants.
Lease guarantor payment reporting is a valuable tool for property managers and owners. Contact Credit Gnomes today to learn how our program works and discover the significant cash savings it can offer.