How to Collect Rent | Sacramento Landlord Handbook

Successful landlords will provide several ways for residents to pay rent. This contributes to on-time payments and reduces the risk of having late or missing rent. 

Rent collection is one good reason to work with professional Sacramento property managers. Most management companies will have a sophisticated software system that allows residents to make their payments online and even schedule them in advance. It’s efficient and secure, and it’s more important than ever with the global health pandemic still an active and ongoing crisis. Online rental payments are contactless and can be managed from the safety of a resident’s home. 

Today, we’re sharing some rent collection tips that may help you get the rent paid consistently on time and with minimal hassle.

Include Rent Collection Policies in Your Lease Agreement

Your process for collecting rent must be spelled out in your lease agreement. You’ll need to provide all the necessary information about rental payments and how they are handled. The lease should include:

• How much rent is due every month. 
• When the rent is due every month.
• How the rent should be paid every month.
• What types of grace periods or late fees are in place.

Be specific and clear. For example, perhaps rent is due on the first of the month, and then considered late on the fifth of the month. Late fees could be $50 or $75 or a percentage of the rental amount. Stipulate all of that in your lease.

Enforce Your Rent Collection Policy Consistently

Once you have the rent collection policy in writing, make sure to enforce that policy consistently. If you let your residents pay late one month without consequence, you’re going to leave them thinking they can always pay rent late.

In a normal Sacramento rental market, there’s little need for flexibility. With the COVID-19 virus holding on and the CDC issuing an eviction moratorium for residents who have been financially impacted by the pandemic, you may have to work with residents who cannot pay rent or are struggling to pay on time every month. Work with them and try to get payment arrangements in place. Collect what you can. 

Many renters who cannot pay are protected from eviction, so you’re going to have them in place for a while. Your best option is to communicate and work together. Make concessions if you have to.

Offer Different Rent Collection Methods

Most residents today prefer paying for everything electronically rather than writing out checks and looking for stamps and envelopes. No one wants to go to a mailbox or drop off rent in person. So, provide that service for your residents and offer online or digital payments. 

Remember that while this is often the preferred way to pay, it’s not the only way. Some of your residents may not be as comfortable with technology, so give them other options when it comes to paying rent. Let residents pay with a check or a money order if they’d prefer. As long as your residents have options, they’re likely to meet their rent payment obligations.