Topic: Rent Collection Advice Needed

I just became a property manager of two small complexes. I love it! We are at 98% occupied at both properties. Maintenance and the leasing staff are great and work hard. However, the residents act like they don't know when rent is due and get angry when I send courtesy texts via Rent Manager notifying of balances due. I have imposed a very strict policy of rent is due by the 1st, late by the 5th and on the 6th late fees are posted and three days are delived. On the 10th I file eviction. No payment arrangements under any circumstances! I know this month I'm going to have a TON of evictions because the previous manager was way too lenient, consequently paying rent is last prioty for the residents. In turn, I'm now getting irate residents verbally attacking my leasing staff. What can I do to combat this verbal onslaught? What is the most professional reaponse to an irate resident accustomed to paying their rent when th3 "get to it"? What are the most effective notices to post? Additionally, we offered a one time concession of $200 off the next months rent for the residents who pay on or before the first. We also us a standard legal 3 day notice. Any and all suggestions will be appreciated greatly! Thanks in advance!

Hi Tara,

It's tough to be the new sheriff in town. I would suggest posting a new Rent Collection Policy Notice on every unit's door that outlines the policy in bullet points, which is easier to read than a bunch of words, though you can and should quote the lease at the bottom. As for residents behaving badly in the Office, I am firm in my rehearsed response and teach it to all Team Members, including Maintenance (who want nothing to do with this topic. Hello? "Sorry, you'll have to call the Office about that.")

The residents who do not read their leases when signing and those that are just hostile in general because they have personal problems will continue to push back. They try to make it PERSONAL against you, DON'T TAKE IT PERSONALLY. Super hard to do when they attack your character. Stay strong - I'd back you up all the way! If anyone feels threatened in any way, you can banish residents who act like this from your office and do not be afraid to call in Maintenance and the Police for immediate danger (911) and non renew or evict for those transgressions.

Once the first person is evicted and then a second, your residents will start paying attention. That is when the sob stories start. Be empathetic, IF there is anything at all you can do to direct them to churches and charity organizations to help them get back on their feet, do that. Compile a print out to give those, still standing firm about eviction.

This is a problem for a majority of property managers hired to clean up someone else's mess. A couple of years from now, your property will have a whole different resident demographic and you will have an easier time of rent collection. Be consistent, be courteous, and stick to your policy.

Tara,
Mindy is right. You are the new manager in town and getting the job right will take time and effort. But remember just like raising kids always start off tough so that you can slack off when needed. It is always hard to be tough when you have never been tough.
That being said I would agree about posting a notice on everyone's door of the rent payment details. The thong I remind other owners in our town is this: if you allow people to pay 5 days late they will pay 10 days late. If you allow people to pay 30 days late they will pay 45 days late. BUT if you demand your tenants to pay on a certain date them the majority will pay. My wife owns a retail business and it is remarkable the people that pay late when given the opportunity. I also relate it to the grocery store or your power bill. You don't buy groceries and then don't pay at the register. As the same you dont NOT pay the power company cause they WILL shut your power off.
Remember everyone has a story but so do you. You are a steward for the owners and you have been hired to watch over their investment and in this case that means rolling up your sleeves and making tenants stick to the rules. I guarantee that after you stick to the agreed lease terms you may loose a few tenants but those will be the ones that you need to loose. And if you are having this problem it would also mean that your rent might be a fee dollars too low.
The only other thing is i would discontinue the $200 deal when you post the rent notice. That is going to be an unnecessary expense.

Mindy is right. You have to be firm and set your guidelines right out the gate.

Adding one more thing, I train my team to say: rent is due on or before the first and late on the second. That's according to our lease. If that'/s the way yours reads, be sure they know it's already late on the second, not the 5th, but you don't charge a late fee till the 6th. Otherwise people paying on the 6th will say, it was only one day late, and I've never paid late before, etc.
you are doing the right thing! They wouldn't want their pay checks 4 or 5 days after they expected them!