News

Keep On Top of Rent Collections in Apartments

Keep On Top of Rent Collections in Apartments

A good management system efficiently records, reports, and manages income from tenants. A poor system, on the other hand, is likely to increase the amount of work, create tenant conflicts, and reduce the amount of total collections.

The income from managed apartments is determined by the actual collection of rents, not by the number of occupied units. A fundamental aspect of effective property management is the rent management system, which enables rents and other income to be billed, recorded, collected, and deposited.

In cases where the rent management system is controlled from an on-site office, the on-site manager may be responsible for the system under the supervision of the property manager. In companies with no on-site office or staff, rents and other monies are mailed to the manager’s central office or to the bank. Regardless of the location of the collection records, a good rent management system is essential.

A consistent rent collection system is crucial to good property management operations. Operating expenses are funded by rental income, so any delay or decreases in this income affects all other aspects of the management process. Developing and maintaining effective rent collection policies requires a good tenant screening program, organized and accurate record keeping, and adherence to collection polices and procedures.

The Next Steps For A Collections System

Each day, rent receipts should be recorded in the tenant ledgers and the rent roll and totaled to ensure that the proper amounts have been posted. Charges and receipts for income other than rent should be coded for identification on the rent roll and tenant ledgers. Policy statements should be established for the following:

  • Rental due date
  • Date rent is considered delinquent
  • Schedule of late penalties/charges conforming to state and local laws
  • Form of payment (check, cash, and so forth), and place to submit payment (on-site or central office, lock-box)
  • Type, content, number, and schedule of delinquent notices (first notice, demand notice, writ of eviction), conforming to all pertinent laws
  • Handling partial payments
  • Eviction procedures

Tenants should be advised of rent collection policies when initially applying for tenancy and again at occupancy. An unenforced collection policy demonstrates poor management of the owner’s investment.

Leave a Reply

Your email address will not be published. Required fields are marked *

It ain't bragging if it's true! TEXAS! https://t.co/JVvtuvKHGw
New Hotels Sprouting up Along I-10 in Beaumont. "Beaumont was host to 112 events in 2019 that generated an estimate… https://t.co/aKnD6OxyBv
DYK: Texas (on its' own) is the 10th largest economy in the world. This makes it larger than the Russian and Austra… https://t.co/IXdBtjobd0
Check out the new Economic Development video we just posted on our home page. This is just a snippet of the things… https://t.co/fLLut3Upx8
Price Reduced! Motivated Seller!! 5365 College Street in Beaumont for sale. Great Office/Showroom location with ent… https://t.co/rfx4GGEF3B
Hardin County Getting a Hospital for First Time in 20 Years with Altus Transition https://t.co/ylUCF930tn
Top 10 CRE Investment Predictions for 2020 https://t.co/I82NT3hQS2 https://t.co/1GAXsM3E0h
Great article about the reopening of 2 downtown Beaumont historical buildings https://t.co/0mE7WWXO2g
Knowing the Lease https://t.co/yIy5hV44uT
Orange County Texas Economic Development Interview with Jessica Hill, Executive Director https://t.co/dqZiiNKRML https://t.co/TBmvtDfajb
The Texas GDP is outpacing every single state in the union as well as the U.S. as a whole. https://t.co/L0KjzPOi4Y https://t.co/3AXn1kfFYL
Sabine Pass LNG project makes progress https://t.co/bJYY9AhRFH
Look at this trend on our trade deficit. This is a big part of our economy moving in the right direction. https://t.co/AJcsEX452W
Monthly Review of the Texas Economy https://t.co/OLC8McupH1
Proposal suggests a coming riverfront boom in Port Neches https://t.co/kI7XoJgG1f
Beaumont preparing to welcome Mardi Gras of Southeast Texas https://t.co/1J9W6yWFPU
Happy New Year from all of us to you!!! https://t.co/5Etx3nbRjm
The top 10 development stories of ‘What’s New’ in the Beaumont Enterprise for 2019 https://t.co/YWJW9nSegJ
Industrial park highlights Orange, I-10 growth https://t.co/YHXuzFZFEe