When you own New York City investment property whose main income is the rental revenues, your objective is maximizing the rent you collect, not only by the amount but the time frame of collecting it. The most convenient and hassle free occurrence is if all tenants paid their rent on time and it would clear in a flash. The truth of the matter is that no matter how well you try, this rarely occurs the way you would like. Although background screenings including the disclosure of financial documents and reviewing landlord/tenant issues with the court may prevent the majority of bad tenants, sometimes tenants fall into unexpected financial situations which will affect your bottom line. It also means that you will not be collecting your rent in a timely fashion. This is why landlords should choose a property management company that will assist in maintaining regular flows of payments even in the worst of circumstances
Communicate with tenants your expectations on payment
There are two things that a successful property management company should do to ensure that rent collection is optimized. The first is that Blue Harbour Property Management has had success starting with the careful screening of your potential tenants. We use all of our resources to get a financial background of the prospective tenant. We ask for financial documents as well as look at the court records to see if there have been any previous issues with the individuals with collecting rent and actions being brought against that person.
When there is vacancy whether it be in a single-family home or in a 100-unit apartment complex, some would try to cut corners and rent your property as quickly as possible and not be as diligent as you should be with your tenant choices. The staff at Blue Harbour Property Management as well as the realtors associated with us are extremely cautious and patient. We do our research and provide the right information such as looking at the FICO credit score of the prospect and see whether their income is sufficient enough to be able to pay the rent regularly.
Once the tenant is decided on, we explain to them what our expectations are with respect to rent delivery and documents are provided to them at the lease signing on where and/or how rent can be submitted.
More and more we are seeing property management companies allowing tenants to pay through an online portal. Blue Harbour Property Management allows the majority of our tenants to pay their rent via our website. This is now becoming a convenient way for tenants to make payments without any delays. When the rent is collected the system automatically deposits the money into the owner’s bank account for use. By having the process become an automated one instead of personal allows us to have a better relationship with our tenants. It also allows our staff to conveniently know when payments are made and whether any collections actions should be brought against the tenants. Time is of the essence with rent payments and we are ahead of the curve with respect to making sure prompt attention is given to receipt of rents and curing any issues with respect to non-payment.