Is your rent coming in on time every month?
If you’ve spent some time screening tenants and you know you’ve placed highly qualified residents, you should have the peace of mind that they’ll pay on time. If your rent collection process is straightforward and you provide conveniences such as online or digital rental payments, you’re setting yourself up for success. Good tenant relationships also help you collect rent on time.
Even great tenants can run into financial troubles, however. If your Albuquerque tenant does not pay rent, there are a few early steps you need to take to ensure that you’re paid as quickly as possible.
Eviction should always be a last resort. It’s not as easy as you think, and it will likely end up costing you more than a month of rent.
Here are the first steps to take when your Albuquerque tenant is behind with a payment.
Communicate with Your Albuquerque Tenant
It seems unlikely, but it’s possible that your tenant simply forgot.
Give them a call or send them an email. Text them if they prefer that method of communication. Let them know that you’re checking in because rent is officially late and you need to know when they’ll be paying it.
Hopefully, this will encourage your tenants to quickly rectify the problem. Always charge any late fees and follow your lease agreement consistently in terms of how late rent is handled.
Be Open to Payment Arrangements
When your tenant is willing to communicate and asks for some extra time to come up with the full rent, be willing to hear them. It’s better for you to retain the same tenant, even if they stumble over a missed rent payment one month.
Set up a payment arrangement and put everything that’s agreed upon in writing. Maybe the tenant can pay half of the rent now and half in a week? Maybe they need until the 15th of the month to pay in full? Be willing to work with them. It will help your relationship, improve your retention numbers, and eventually ensure you get paid as quickly as possible.
You’re documenting the payment arrangement so you can hold your tenant accountable if they don’t hold up their end of the bargain.
Serve the Pay or Quit Notice
Even if you enter into a payment arrangement or you come to an agreement with your tenant, you want to be prepared to take legal steps if you have to.
Before you evict a tenant in Albuquerque, you need to serve a Pay or Quit Notice. This typically gives tenants three days to catch up with rent or leave the property. After the three business days have passed, you can go to court and file an eviction lawsuit.
Let your tenants know that you’re sending this notice, even if you know they plan to pay rent in a specific time period. You don’t want to evict, but if you have to, time will be of the essence. Serving this notice gives you the permission you need to start the process.
We always recommend working with an experienced company providing property management services in Albuquerque. This partnership will protect you against frustrations like late rent and eviction.