Collecting rent on time is always a significant issue for landlords to deal with. But the COVID-19 outbreak meant that it became more challenging for landlords to collect rent. Millions of people became jobless, meaning that they had little funds to pay rent. Although stimulus checks and extended unemployment benefits gave some respite to tenants, paying rent for millions is a significant challenge.
The best solution for landlords is to find different ways to help tenants pay rent—at least part of their rent. After all, collecting rent is the lifeblood of any landlord business. Healthy cash flow means you, as a landlord, can pay your bills, mortgage, and maintain your rental properties.
One of the most straightforward solutions to help landlords collect rent is to offer tenants flex pay. Allowing flexible rent payments can help tenants pay rent according to their schedule. Other solutions for collecting rent on time include using rent payment apps and proactively communicating with tenants.
Why could flex payment models for collecting rent be the way forward in a post-COVID-19 era? This article will explain why flex pay options are a surprisingly simple solution to collecting rent. You’ll also find out about other ways to encourage tenants to pay rent on time.
The Problems with the Traditional Rent Collection Method
The traditional way of collecting rent is that rent is due on the first of the month. Usually, renters send a check that the landlord deposits in their bank account. However, the coronavirus pandemic has forced landlords to reevaluate how they collect rent.
We live in a digital age, and traditional rent collection methods seem severely out-of-date. Think about what’s involved in collecting rent the “traditional” way. You wait for the paper rent check to arrive in the mail. Then, you must drive to the bank to deposit it. After that, you wait for around five days for the cash to clear.
Traditional rent collecting seems like a lot of time and effort for something you can easily do electronically.
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