Introduction
Late payments are a major problem for property managers and owners. They can lead to financial hardship, legal action, and even eviction. Late payments can also negatively impact property management’s reputation, making it more difficult to grow market share and manage additional properties for ownership groups in the future. Managing properties without rental payment reporting can lead to problems…
The Problem
As a property manager, you know that late payments are a pain. They can be time consuming to manage, and they can lead to a lot of stress. What’s worse, late payments can have a negative impact on your business.
John is a property manager for a small apartment complex. He has a good relationship with his tenants, but he’s always struggling with late payments. Some tenants pay their rent on time, but others are always late. John has tried everything to get tenants to pay on time, but nothing seems to work.
One day, John gets a call from a tenant who is two months behind on rent. The tenant says that they lost their job and they’re struggling to make ends meet. John sympathizes with the tenant, but he knows that he can’t let them stay in the apartment without paying rent.
Late payments can be a major drain on a property manager’s time and resources. When tenants don’t pay their rent on time, it can lead to a lot of administrative work, including:
• Contacting the tenant: Property managers spend time trying to contact tenants who are late on rent. This can involve making phone calls, sending emails, and even sending certified letters.
• Getting a commitment of payment: Once a property manager makes contact, they often have to get a commitment of payment. This can be difficult, especially if the tenant is struggling financially.
• Posting notices: In many cases, property managers are required by law to post notices of late payment. This can be a time-consuming process, and it can also be disruptive to other tenants in the building.
• Evictions: If a tenant continues to be late on rent, the property manager may have to evict them. This is a long and expensive process, and it can be emotionally draining for the property manager.
In addition to the time and resources that late payments can cost, they can also damage a property manager’s reputation. If a property manager develops a reputation for not being able to collect rent on time, owners may be less likely to use their services. This can lead to a loss of income for the property manager.
As John proceeds with eviction, the process takes months and costs John thousands in lost rent and legal fees. In addition, John is likely to incur higher than normal turn over costs as he prepares to market and release the unit.
In total, John incurs several thousand dollars of expense due to late payments, on one unit. This is a significant amount of money for a small property manager.
The Solution – Rental Payment Reporting
Payment reporting is a solution that can help property managers and owners reduce late payments, improve cash flow, and reward on-time customers.
Payment reporting is a service that reports rent payments to credit bureaus. This means that when a tenant pays their rent on time, it will be reflected in their credit report. This can help tenants improve their credit score, which can make it easier to get approved for loans, leases, and other forms of credit.
After struggling with late payments for years, John decided to try payment reporting. He signed up for a service that reported rent payments to all three major credit bureaus.
Within a few months, John saw a significant decrease in late payments. He also noticed that his cash flow improved. In addition, John was able to reward his on-time tenants with improved credit scores.
Payment reporting was a win-win for John and his tenants. John was able to reduce late payments, improve his cash flow, and reward his on-time tenants. His tenants were able to improve their credit scores and build a better financial future.
Rental payment reporting is a valuable tool for property managers and owners. Contact us today to learn how rental reporting can be implemented within your portfolio. If you’re looking for a way to improve your business, payment reporting is a great option.