The national average rent is over $1,800 per month. And it's for everyone's benefit for payments to be collected on time.
As a landlord, late rent can really cost you. It can keep you from paying things like mortgages and taxes on time, and it lets you know that an eviction may be possible in the future.
What are the rules of rent collection, and how can you make sure you're running a tight ship?
Let's take a look.
Setting Your Rent Price
You'll need to determine a fair rent price before you begin looking for tenants. You'll need to compare the space in your unit to that of other comparable homes in your area.
If you're going to charge a bit more than the competition, it's important to be able to justify this decision. You may be offering amenities such as a pool or a renovated kitchen that will allow you to ask for additional rent.
You'll have to be able to cover the expense of owning your home with the rent price. This will include utilities if you are offering them as part of your rent. If you don't think you can charge enough to cover the cost of ownership, it may be time to sell the property.
Rent Collection
In today's world, there are a variety of ways to collect rent. You could pick up the payment in person, which may be difficult if you are living out of state. If this is your situation, you may want to consider hiring a reputable property management company to handle things like rent collection, repairs, and bookkeeping.
You may also wish to have your tenants mail in their rent payments, or have online payments available. Some landlords offer grace periods after the rent due date that will allow tenants to avoid late fees if they get their rent in by a certain date. Grace periods are usually somewhere between 3 to 5 days.
If you're going to charge late fees, make sure they're written into your lease. It's usually set at around 5% of the rental price, and can be added onto the following month's rent. Rent receipts can be provided to help both of you keep track of payments.
Tracking Payments
A rental tracking tool can help you to keep track of existing payments. It can also automatically charge your tenant if a payment is made past a certain date.
Well-kept records can help you to maintain your property with peace of mind. Many property management companies have established systems that help them keep accurate records of rent collection. They will also have documentation of things like maintenance requests, complaints, and repairs.
Moving In
Rent collection is one of the many tasks a good landlord is responsible for. With the right system in place, you could be enjoying an excellent source of passive income in no time.
For more information on property management in the Las Vegas area, contact us today.