You have heard the phrase, “money makes the world go round.” In essence, money does solve a lot of problems, including a lot of problems in the property management industry. If only it were as easy as receiving a rent check in the mail on time, each month, then depositing it straight in the bank. The reality of this painted picture is not reality at all, unfortunately. Rent collection for property management companies in Sacramento is much more complex. RPM Select has over 35 years of experience in rent collection, and welcomes you to take a crash course from the pros and discover how Select ensures its clients maintain a steady cash flow of rent.
Rigorous Tenant Screening Process
Keeping the rent checks coming in each month starts at the beginning of the leasing process with the search for tenants. Establish your asking rent price, remember to start on the higher side of the spectrum, and determine what your income requirement will be for prospective tenants. A common rent-to-monthly income ratio is often somewhere between 2.4 and 3 times the monthly rent amount. If you are asking $3,000 for rent each month and want a 1:3 ratio, you would require a monthly gross household income of no less than $9,000. Sacramento property management companies let their income ratios be known up front to prospects to help weed out those who would not financially qualify. By doing this, landlords do not waste time showing properties to those who could not afford to live there.
Once you have determined your income qualifications and have an interested applicant, Select runs background, criminal and credit checks. Credit checks are crucial to making certain you have a reliable tenant who pays their bills on time and in full. If you have a tenant who applies and all things look good except for their credit check, do not settle. Hold out for a more qualified tenant. You will be glad you waited for the right tenant. Hold each applicant to same standard as the other. This will prevent a discrimination lawsuit.
Require that tenants submit reliable income proof at the time they turn in their applications. The two most recent pay stubs, three most recent years of tax return documents, or six months of bank statements should suffice. You can and should verify employment by calling the human resources representative or manager listed on the application.
Property Management Companies in Sacramento Communicate Clearly
The lease signing process is an ideal time for landlords to set crystal clear expectations with their tenants regarding when rent is due, the amount of rent, how it should be paid or delivered, and what happens if they fail to pay. Too often property managers hear the phrase, “I didn’t know,” when referring to rent collection rules. Communicating rent rules keeps steady cash flow for landlords so they can continue to pay the mortgage, cover maintenance costs, and make a return on their investment. At Select, on time rent payments are rewarded. Tenants who pay rent on time and in full each month receive benefits like coupons and discounts to local grocery stores, shopping and dining. If rent is not paid, document and follow through with proper legal notices. Consult your lawyer before moving forward with an eviction process. Sacramento property management companies must treat each tenant equally and will respect whether the tenant pays rent or not.
Automating Rent Collection in the Digital Age
We live in a time when the majority of people are attached to their screens. A Nielsen Company audience report found that the average American spends more than ten hours a day in front of a screen. This includes computers, television, smart phones, video games, radios, and tablets. Why not capitalize on this? Property management companies in Sacramento know that residents are more likely to pay their rent on time, when it is convenient for them. That’s why Select created an automated rent collection process that allows residents to pay online, so it is at their convenience. When a payment is not received by Select, there is an automated collections process. This automated system follows the rules set forth in the lease agreement pertaining to rent and follows all legal guidelines for the collection process. Having an automatic process helps eliminate tension between management and tenants. If the tenant still fails to pay rent, Select consults with legal counsel before moving forward with an eviction to ensure all is done properly. Select even offers an eviction protection program for clients. For a small fee, clients are protected from eviction costs, if one occurs. Though it rarely does due to Select’s rigorous screening process.
Sacramento property management is a tough business to navigate. Especially when rent collection is so crucial to the success of the business. Let the professionals at Select handle the hassle of rent collections for you. With more than 35 years of trusted experience, you are sure to get your rent on time and deposited in full into your bank account each month. Call the experts at Select today to get started.