The Most Common Rent Collection Mistakes that Hurt Your Business

Are you having trouble collecting rent from your residents? Perhaps your systems aren’t working well for tracking collection? If so, you're not alone. Many property managers and their teams make common mistakes that can hurt their business. In this blog post, we'll share the most common mistakes that lead to rent collection issues, how to avoid them, and how Elevated Living software can solve these problems.

Not Having a Written Lease Agreement

When it comes to renting out a property, having a written lease agreement is incredibly important – not only for the resident but for the property managers as well. A written lease agreement provides both parties with clarity of what is expected from them, in the event of any disputes or missed payments. It also serves as an important document for future reference when questions arise.

Written rental agreements or leases should also have a digital record so they can be easily shared with the relevant parties. Many modern property management teams are using rental management platforms like Elevated Living to ensure consistent and standardized lease agreements can be easily found, kept, and referenced by both managers and residents.

Accepting Cash Only

Accepting cash payments makes it difficult to track rent, which can lead to inaccuracies in bookkeeping and financial tracking. If all transactions are conducted in cash, it opens the door to potential fraud and embezzlement by employees who have access to the funds. To effectively monitor payment processing and ensure accurate records, property managers should set up regular withdrawals through property management software. This way, your rental collection can be automated, and payments can be tallied all together. Doing so will also allow for detailed tracking records and less possibility of money going unaccounted for.

Failing to Keep Records of Payments

Proper record-keeping is essential for rent collection, yet it is surprising how many property management teams still don't keep adequate records. Not only can inadequate records leave you exposed to potential legal issues and disputes, but they can also affect relationships with residents and open the door to fraud.

Keeping detailed records without modern property management software can be tedious. However, the right software can automate and standardize much of this work, making it more accurate and less labor-intensive. It will also ensure compliance with state rental laws and can protect you from financial losses. Good documentation also helps both parties track any discrepancies in payment amounts or late payments, which can help maintain good relations between residents and managers alike.

Your Choice for Property Management Software

Do you want to improve your rental collection systems and update your record-keeping? Then Elevated Living is here to help. Our unique and advanced property management software can help you and your team collect rent, and keep your documents together and in order, while also automating some of the more laborious aspects of property management. Contact us today to learn more about the power of Elevated Living and how it can revolutionize your business.