How to Collect Overdue Rents
Digested from Multifamily Insiders
By understanding rent collection as an administrative process and by following these other tips, onsite staff can save time and even money.
Collecting overdue rents might be one of the most unpleasant tasks that an onsite management staff member does.
Usually the process begins with a notice left on the door, a voicemail and an email, according to Lori Hammond, writing for Multifamily Insiders. But onsite associates need to look at rent collection as an administrative responsibility and maintain eye contact throughout the exchange.
“A resident needs to understand how the apartment community handles unpaid rent,” Hammond writes. “During the leasing presentation, the rent collection process should be explained, as well as the steps that will be taken to collect unpaid rent. Signing a lease is a commitment to pay rent and provide the payments timely. If a resident does not meet their responsibility, it creates the need for action on the part of the management team.”
If apartment management can successfully reduce the time spent collecting rent, a lot of time could be freed up for other tasks.
“If the time producing late notices, copying files for the legal process and knocking on doors could be reduced by 25 percent, consider what could be accomplished with this three to four hours per week,” Hammond writes.