Recent multifamily data shows that many people are behind on rent. This means property managers are likely dealing with more and more late rental payments than ever. There are some things you can do to help deter late rent payments and prevent issues for your property. In this article, we’ll discuss some tips to help you if you’re experiencing an uptick in late rent from your tenants.
Multifamily Data: A Lot of Tenants Are Behind on Rent Right Now
Practically every landlord will deal with a tenant that is behind on rent at some point or another, whether due to forgetfulness, financial strain, or other situations. However, right now multifamily data shows that a lot of property managers may be dealing with late payments. One study from June found that about 15% of Americans were late on their rent payments. Data from the Household Pulse Survey from the Census Department also shows that approximately 13% of Americans were very likely to face an eviction in the next 2 months. Therefore, it’s important to have policies and plans in place to get rental payments from your tenants to prevent financial hardship for your property.
Tips for Handling Late Rent Payments
Since property management data shows that many communities are dealing with tenants who are late on their rent, it’s critical to know how to handle these situations. Being proactive about late payments is essential.
The first thing to note is that you should know your local laws regarding late rental payments and courses of action you can take. For instance, some states have certain grace periods in effect before you can serve a pay or quit notice. Some also have limitations on late fees for rent, such as percentage or dollar amount maximums and exemptions for certain tenants. So, make sure you’re up-to-date on the laws that affect your property.
It’s also important to include information about your late rent policies in the lease agreement. This includes any standard grace periods you offer and any late fees that apply. This can help reduce the risk of disputes over the actions you take for late rent. Also, making the risks clear can help deter people from being late on their rent.
It also helps to create policies for clear communication once a tenant becomes late on their rent. For instance, sending letters, emails, or texts reminding them to pay their rent. In some properties, this also includes a meeting with the tenant to determine what can be done. If it’s a short-term problem, you may be able to negotiate a payment plan so your property doesn’t lose out on income and doesn’t have to go through the lengthy process of evicting a good tenant.
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