The most common dispute between a landlord and tenant are late rent payments. Not receiving rent can cause several financial issues for the landlord, as well as potential legal trouble. Here are a few ways to navigate late rent:
1. Screen the tenant. Having a set of application criteria (and sticking to it) may prevent this headache in the first place. This is where a property management company may come in handy. A solid property management company will be set up for tenant screening and understand what to look for when it comes to red flags with prospective tenants.
2. Communicate with the tenant. A phone call, or attempt to meet the tenant where they are at can go so far! You may find that the tenant is in financial hardship due to medical or family emergency, etc. and they need a creative solution to pay bills (such as breaking up the payments).
3. Report to the credit bureau. This will both help tenant build credit and incentivize against late payments (or their credit will be in jeopardy).
4. Lastly, the unfortunate route of eviction. This process can be long and exhausting. One other option you may want to consider is cash for keys. Your ego may not like it, but it may be what is best for your pocket.
BONUS TIP: Treat your tenant with respect and fix repairs quickly. Being a good landlord sets the expectation for tenants.
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