Successful landlords use systems to manage their business.
Do you have systems in your business?
Successful landlords have one thing in common: They all use systems to manage their business.
I know a lot of landlords and it drives me crazy when they don’t have systems that they routinely use. It stresses me out just to think about it!
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First Of The Month
Imagine the first of the month is tomorrow. You are counting on the rent money coming in so that you can pay the bills. Do you know for certain that your tenants will pay their rent on time?
Chances are good that most of your tenants will pay on time and all will be well. But there is always that one tenant.
What will you do if they don’t?
- Will you throw up your hands in the air in disgust and wonder when they will pay?
- Do you text them asking them when they plan on paying?
- Then wait around anxiously watching the mail box for the rent to arrive?
- Then start stressing out because you don’t know when they will pay and how you will pay your bills.
Are you a successful landlord that knows how to use systems to manage your business and record rent payments? Remember, successful landlords use systems.
You aren’t stressed because you know:
- Rent is due on the 1st.
- Late fees start on the 6th.
- The 7 day letter is mailed on the 6th.
- 8 days later you will call in for a court date.
- The tenant also learns that you are consistent and mean business.
- You know that if the tenant doesn’t pay, while that isn’t great for you, at least the system is in place to get rid of this non paying tenant.
- There is no uncertainty about what you will do!
- There are a number of programs out there that landlords can use to keep track of rent. Some landlords use Quick Books or Quicken which are very easy to use and other landlords us more sophisticated software that will track your tenants in more detail.
Do You Use A System To Track Rent?
No matter what program you use to track rent, you need to have a good system in place.
What do I mean by that? It does no good to have rent come in and then just throw it on your desk to enter at some point.
For landlords that only have a few houses, it is much easier to keep track of payments. You may only need to enter them once but I recommend that you get everything entered no later than the date late fees start accruing.
If you are a landlord that has a lot of rental properties, it is very important to keep everything as up to date as possible.
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For example, every morning I come in and enter all of the rent that has come in. There is a lot of foot traffic in the office every day and I don’t feel safe having rent money out with people coming and going.
So, before the office officially opens, I enter all of the rent, add late fees starting on the 6th, send 7 day letters as needed and back up the data. I do this every single morning as long as there is money to enter. I don’t let them accumulate and do it once a week. It is hard to keep track of the tenants that haven’t paid on time if you don’t do this daily.
Tenants call all the time wanting to know what late fees are and how much they owe. All I have to do is pull up their account and I can tell them exactly what they owe, if a 7 day has been mailed and when I will be calling the attorney for an eviction. It makes my life much easier!
TOO BUSY! It can be easy to get busy and not enter the rents for the month. The days just seem to roll by and suddenly you realize it is the 20th and you still don’t have rent from at least one of your tenants.
Yes, you can still send a 7 day letter to start the process, but now you are playing catch up and another month is going to start soon. You have just cost yourself precious time and money.
I hear all the time from landlords that they just mentally keep track. Don’t do that! Successful landlords use systems every single day in their business.
Have a system and follow it. Systems will help you be a successful landlord.