With more than 33 million small businesses in the United States, commercial real estate can be a great industry to be in. Most companies need commercial space to operate in, and renting to them can be a great way to build wealth as an investor.
Despite this, commercial real estate can get tricky if your tenants aren't paying their rent or are failing to pay on time. Ensuring they pay promptly can help streamline your business and help your investments succeed.
Here are the top rent collection strategies you need to use to ensure timely and efficient payments in El Paso, TX.
Use an Online Portal
One of the keys to collecting rent promptly and efficiently is to make it easy for a tenant to pay. Switching to collecting rent through an online tenant portal can help you make the process easy for them and improve the chances that they'll pay on time.
Online portals are easy for commercial tenants to access and use. They can pay using a variety of payment methods and set up automatic payments, which can help ensure that they pay on time.
Charge Late Fees
If you want your tenants to pay on time, charge them late fees if necessary. Make it clear in your lease agreement what late fees they'll face if they pay late.
While you should work on being an understanding landlord, you also need to enforce rules. Charge a reasonable late fee and pay attention to legal requirements when doing so. However, don't let it slide if a tenant pays late.
Maintain Good Communication
When collecting rent from commercial property tenants in El Paso, also be sure that you communicate well. Be transparent about the due date, late fees, and all other lease terms, and let your tenants know exactly what you expect from them.
Consider sending out payment reminders when a due date is approaching. You should also include all policies in your lease agreement and ensure your tenant understands them.
Setting expectations with tenants from the very beginning will help streamline the payment process and help you get the most out of commercial asset management.
Hire a Property Manager
Consider working with a property management company to ensure timely rental payments. A property management company can handle demanding tasks for you.
Property managers can help send payment reminders and communicate with tenants to ensure they know what's required of them. They can also help you create a solid lease agreement, facilitate commercial property maintenance, and collect rental payments on your behalf.
Improving Commercial Rent Collection
If you want to improve commercial rent collection in El Paso, using the right strategies can help. Start using an online payment portal, set and follow late payment policies, and communicate with your tenants to ensure they pay on time.
PMI El Paso is a full-service property management company. We offer tenant screening services and can help with monthly rent collection, property maintenance, and financial reporting.
Want to learn more about how we can help manage your commercial properties? Contact us today to learn about the services PMI El Paso provides.
