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 *

Beaumont to welcome arena football, Bighorns team to Ford Park! https://t.co/w5jVwjCFtd
And the Texas commercial transaction of the year is ... https://t.co/RLNr9CnAr7
So proud of our client! Check out the pictures of the new Steak n' Shake https://t.co/qAPVs4xofD
Everything you ever wanted to know about Texas Ports - Great information from our friends at NAI Partners https://t.co/WozR1GUQIL
Happy Valentine's Day from our team to all of you!!! https://t.co/zV0wismbpR
Port of Beaumont OKs $30M in bonds for Harvey repairs https://t.co/ZWxzBesL3Q
Beaumont getting an Aldi Grocery Store. https://t.co/WjOLOk8Sqp
We were awarded the William C. Jennings Commercial Transaction of the Year for Texas Realtors yesterday. It recogni… https://t.co/6H6w75x5ve
What Makes or Breaks a Successful Small Business? https://t.co/chfl8ufV2a
Port Neches eyes potential riverfront addition https://t.co/hqE5z63s7v
$10B LNG port expansion project planned for Sabine Pass https://t.co/zWTZX2qRsz
Sports center in Orange, an idea whose time has come? https://t.co/mO86rgzN9S
How to launch yourself into real-estate investing https://t.co/GguYqJC1EX
Lumberton - TXDOT announced today, that $1.8M has been tagged for the widening of Hwy. 69.This will widen the roadw… https://t.co/v9WNaHC6z5
Want to see a great site (other than ours) to search for commercial property in SETX? Visit https://t.co/uHsgJOg8yE.
5 Ways to Save on Airfare, Based on 900 Million Transactions https://t.co/Y3Th49BQAi
Historical Buildings in Downtown Beaumont Before and After Pictures https://t.co/s3hORBNUK9 https://t.co/LANCocagKX
Another property Wheeler Commercial sold for the City is looking to open for business and bring some jobs. https://t.co/Hb0Oan705C
Exxon OK's project to nearly double size of Beaumont, Texas refinery: sources https://t.co/WxMSn8d85o
Beautiful Former Red Cross Historical Building For Sale https://t.co/FyME8gEWxf https://t.co/hDiqElMWHO