Demand for housing remains high, but homebuyers face low supply and mortgage rates above 7 percent. That means to be able to afford a home, you need to make over six figures.
This pushes people to turn to rentals, which should be great news for landlords in Lynchburg, VA. Unfortunately, just because many potential tenants are out there doesn't mean rent collection would be a breeze.
If you're new to being a landlord in Lynchburg or accidentally ended up in the role, struggling to collect rent is a common issue. That said, here's what you need to know to make the process easier.
Explaining Rent Collection Processes
Landlords can collect rent in person, by mail, online, or through apps. If you're receiving paper checks, face-to-face or via post, know that you could run into payment issues. In particular, rent checks sent by mail could go missing or arrive late.
Meanwhile, credit or debit card payments are convenient for both parties. However, Lynchburg landlords should factor in processing fees. The same applies to rental payment platforms and applications that charge transaction fees.
As a newbie landlord, you might appreciate the ease of transactions that rental payment platforms and apps provide. These are user-friendly and may include features like charging late fees or rejecting partial rent payments.
How to Optimize Your Rental Collection Systems
Remember that tenant income stability isn't guaranteed in whatever collection method you choose. Some tenants may pay late or partially due to unforeseen circumstances. If this becomes a recurring problem, it will affect your bottom line.
Consider automating the rent collection process to counter this and avoid landlord stress. If you use an app, it will withdraw fees from tenant accounts on a preset schedule. Most apps will also send payment reminders as their due dates are near.
Be prepared to communicate with tenants who have outstanding rent payments. Politely remind them of the consequences of missed payments.
If tenant relations isn't your forte, working with a full-service property management company may be worth it. They can help streamline operations, including rent collection.
When Self-Management Becomes Overwhelming
Whether intentional or not, becoming a landlord requires time, expertise, and a desire to succeed. However, not every Lynchburg landlord will have the resources or motivation to make things work. Here's where a property management company can help.
If rent collection gives you a headache, a dedicated property manager can handle it. You'll still have rental income, plus more time to pursue personal endeavors. They can also help you with tenant screening, lease enforcement, etc.
Simplify Rent Collection with PMI Lynchburg
Rather than learning property management on the job, work with certified experts. Becoming a landlord isn't for everyone, and many don't think twice about hiring a property management company.
When you partner with PMI Lynchburg, you'll be assigned a dedicated property manager. They can help with tenant screening, eviction protection, and more. Bonus: Our top-of-the-line technology ensures streamlined rent collection.
To learn more about how we can help you manage rental income-related issues, contact us today.
