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Given Alexandria's accolade as the #3 best small city in America, its stunning scenery, highly rated educational system, and thriving economy, it won't be surprising to see the city continue growing and attracting renters. So, if you have property here from which you want to generate income, consider leasing it out ASAP. The sooner you do, the sooner you can find quality tenants and start the rent collection process.
To help you get started, the Century 21 Accent Homes team has shared practical and efficient rent collection strategies.
Set Competitive Rental Rates
The first step to efficient and on-time rent collection is charging a competitive rent fee. Because if you set it too high, your tenants might find it more difficult to pay on time. You'll have trouble collecting rent, which may lead to higher eviction risks and vacancy rates.
To determine a competitive rental rate, conduct a comprehensive rental valuation. It can give you valuable insights into how much landlords who own comparable properties charge. You can then use your findings as a guideline or basis for your rental rates.
Enforce Reasonable Late Payment Fees
Under the Virginia Residential Landlord and Tenant Act, late fees for rent payments are subject to specific limits to ensure fairness for tenants. A landlord may charge a late fee if the rent is not paid on time, but the fee must be clearly outlined in the rental agreement. According to the law, the fee cannot exceed 10% of the rent due for the rental period in question. Additionally, the late fee cannot be imposed until the rent is at least 5 days late, and the tenant must be given a grace period of 5 days before the fee is assessed. This provision is designed to protect tenants from excessively high late fees while also allowing landlords to recover a reasonable amount for late payments.
Invest in an Online Tenant Portal
Allow tenants to settle their dues via an online tenant portal. Digitizing payments makes it more convenient for renters and can help you simplify your rent collection process.
Depending on the portal's software, it may incorporate the following digital payment methods:
- Credit and debit cards
- E-checks
- PayPal
- Other mobile wallets
You can have an online portal custom-made by a web development company, but this may cost you a hefty sum. A better alternative is to partner with a reputable property management company offering landlord-tenant portals as part of their management service agreement.
For instance, at Century 21 Accent Homes, we provide our landlords and tenants with a feature-rich online portal. From paying rent to requesting home maintenance and contacting us, they can do all these and more straight from the platform.
Enhance Rent Collection Efficiency With These Strategies
By following the strategies we discussed in this guide, you can improve the efficiency of your rent collection process. You can also help simplify your tenants' lives, especially with a feature-rich portal that lets them pay rent online.
Our full-service property management company, Century 21 Accent Homes, can help with efficient rent collection and other essential landlord tasks. We can assist with comprehensive tenant screening, lease enforcement, property upkeep, and eviction protection. Our team members have decades of combined experience in property management, administration, and maintenance.
Speak with us today to request your free Alexandria property analysis and learn how we can help maximize your rental income!
