Having your property rented out requires you to collect rent from tenants. It involves collecting rent from tenants and chasing them until it is paid. These services provide a more reliable and efficient method for collecting rent for private landlords through rent collection agencies or online letting agents.
Rental collection agencies may also pursue guarantors if tenants fall behind on rent. Utilizing a rent collection service allows landlords to save time and money instead of handling rent collection manually, especially if a tenant consistently misses payments.
Rent Collection post-pandemic
Due to the severe pandemic that hit the UK, efficient rent collection has become more crucial than ever. The closing of businesses resulted in many tenants losing their jobs. Figures show that residential rental numbers are increasing, accompanied by rent increases as the shortage hits the sector.
Different parts of the country have experienced major differences in the commercial sector. Contrary to expectations, one large property management company reported collecting 71 percent of June’s rent. It claims that its collection method plays a major role in keeping revenue constant.
On the other hand, retail landlords face severe difficulties. According to the British property federation, retailers are owed around £2.5 billion in third-quarter rents by property firms. Those firms reported successful collections averaging just 40 percent or less. In both private and public letting sectors, the government has instructed landlords to avoid using high-pressure tactics or the threat of eviction during this economic crisis. Landlords are urged to increase collection efficiency and to offer tenants experiencing hardships more flexible payment arrangements.
Changing pattern of rent collection
Traditionally, landlords have collected rent in various ways. Some preferred to pick up the cash or check on site. In addition to keeping in touch with their tenants, landlords had the opportunity to inspect their properties, at least outside.
While this can be a convenient approach for tenants, handling frequent late payments can be difficult, and tenants may not always appreciate it. Others accepted payment by check. As a result, checks sent through the post may be delayed, and landlords may have to wait to clear cheques. The maintenance of revenue flow requires careful recording and tracking of both methods.
Landlords traditionally collect rent by a variety of means. Offering tenants online payment facilities could be more efficient. A recent Money magazine article notes that online bill payment and rent payment is becoming more popular with all age groups. Bills are paid online by 61 percent of millennials and 42 percent of older age groups.
How to pay rent online?
Tenants and landlords can both benefit from the option to pay rent online. Landlords can get updates on individual tenants’ income and payments through notifications sent to them via email and SM, with software applications. Utilizing websites and apps, tenants can pay rent online, which protects their banking information.
Tenants can also be reminded online when it’s time to pay rent using the software. In that way, the number one landlord problem of late rent payments can be eliminated intentionally or through mistakes. The payment receipt and processing are faster, and the rental funds are available in the bank account within hours or sometimes instantly after payments have been received. Experience also indicates that online payments increase the likelihood of recurring payments.
The National Multifamily housing council reported, for instance, that 85 percent of people who paid their bills online actually paid them again in the next month. In addition to improving control and credit management, the status reports help landlords take action against poor payers before imposed penalties. Rent collection programs are also available as part of property management systems, which help landlords manage their properties and get an overview of their costs.
for TENANTS, HOW to make it easier to pay rent?
Renters are more likely to pay on time when a private landlord consistently accepts payment. Renters can become confused if you keep changing how they should be paying, resulting in late payments. This can also demonstrate your professionalism to tenants if you have a strong system for collecting rent.
Rent payments can be received faster if you deal with late payments promptly. Late rental payments can be difficult to deal with moving forward if you leave them for too long. Look into offering additional payment options to tenants who are late with their rental payments. Using a rent collection service can help you manage your rental property more effectively and even promote your reputation as a landlord.
Handling late payments
In the case of nonpayment, we will take the following steps:
- As the tenant’s rent still hasn’t been paid, we inform them.
- If the tenant does not respond, we formally notify them of the nonpayment.
- Upon receiving the notice, no action will be taken if the tenant pays the rent. We will, however, inform the property owner if the tenant fails to pay.
- The eviction process begins if the owner consents.
A tenant has three days to pay rent or vacate the property once the landlord gives them the notice to vacate. After receiving the notice, the tenant has three days to respond. Except for lease agreements that allow for an extended or shorter period, the tenant must pay or vacate within three days. The tenants typically pay their rent within this period, as we have observed over the years. Renters who fail to pay typically vacate the property. A lawsuit can be filed against the tenant if they don’t.
The process is known as Summary ejectment. When the court issues a summons, the court will specify the date and time of the hearing. At this hearing, the property owner must be present. Tenants must vacate the property as soon as the court rules in the landlord’s favor. Owners can file for Writs for possession if tenants do not vacate the property. Under such legal proceedings, the tenant will be forcefully evicted, and the locks will be changed.
In the case of non-recovery of the rental amount, what happens?
Experienced in rental payment collection, arrears management, and ensuring that timely and appropriate action is taken to minimize the impact of delayed payments. We are incredibly pleased with our low default rate of less than 1% on our portfolio of properties due to our low arrears rate (nonpayment / late payment).
We have the knowledge and in-house legal expertise to ensure that when the crunch comes, and action needs to be taken, we can ensure the problem is managed as efficiently as possible. The property is returned as quickly as possible.
Is it possible to collect rent weekly?
As a standard, the collection process is typically arranged around a monthly rent payment, which is how to rent in the UK is usually collected. Don’t hesitate to contact us if you require alternative payment dates (including any fee premium chargeable) if you need alternative rental payment dates.
Benefits of using a rent collection service
Rent collection by an online letting agent- like Attorney real property management Direct- who provides this service is more effective and efficient. Rent disputes and awkward conversations regarding rent payment can also be avoided with the assistance of this service. You often receive up-to-date rent statements from the rent collection agencies regardless of not dealing directly with your tenant.
These are often a more affordable alternative to hiring a letting agent and provide a hands-off way of managing your rental property. Rent is chased, checked, and paid as soon as it arrives by Attorney real property management director, a private landlord collection service. Our team will collect your tenant’s rent and help them pay it on time once they move in. your rent will never be paid to any other party because we create a unique account number and sort code for each property.
No matter who your tenants are, you will still receive rent at the same rate, even if their account numbers and sort codes change. It is also easier to track your rental income when you have a rental account dedicated to it.
This account can also be used for accounting and tax purposes. Each monthly rent payment is checked and transferred to you during the same day we receive it. The payment is secured and reliable, and there is no holding period. We’ll pursue your tenant if they don’t pay their rent on time. Our team can take credit and debit card payments over the phone if they’re having trouble paying.
Tenant referencing and rent guarantee protection
It is certainly beneficial to offer your tenants easy ways to pay rent online, but you should also do your homework before signing a lease with them. To determine whether your tenants have the financial ability to pay for your property, we can perform tenant referencing and credit checks online for just £20 per tenant. Our rent guarantee insurance can then be arranged, so you won’t have to worry about losing money.
How much does Attorney real property management rent collection service cost?
Rent payments through Attorney real property management direct cost £10 a month (including VAT) and are deducted directly from your rental income, so you don’t have to worry about setting up payments. In addition to managing tenants and collecting rent, we also offer a range of low-cost solutions for private landlords. Contact us today to learn more about our rent collection service or to find out more.