Unpaid rent is always a risk, and it’s especially important to avoid it now, when eviction moratoriums are still in place for tenants impacted by the COVID-19 pandemic.
Our eviction rate at Chase Pacific is fairly low, and we believe that’s due to our excellent tenant relationships and our strict screening process. We also provide online rental payment options, which is convenient for our tenants and cuts down on late or missing rent.
Limit those rent collection hassles with a consistent policy for paying rent, and make eviction the last resort when you’re renting out a San Diego property.
San Diego Rent Collection Practices
When you’re establishing your rent collection process, you need to make sure your tenants understand the following:
- How much rent is due
- When the rent is due
- How they can pay their rent
They also need to know whether there’s a grace period and what the consequences will be if rent is unpaid.
All of this information should be in your lease agreement, and we suggest you go over the details with your tenants before they move in. Ask if they have any question and reinforce the importance of on-time rental payments. Enforce your policies. If rent comes in late, don’t hesitate to charge the late fee.
Providing Multiple Ways for Tenants to Pay Rent
You’re far more likely to collect rent consistently and on time when tenants have multiple ways to pay.
Online rent collection is by far the most popular way for residents to pay. Most property management software systems will allow them to pay electronically. They can set reminders or set up automatic payments from bank accounts or credit cards. It’s secure and easy and eliminates a lot of risk that rent will be late.
Not everyone loves technology, however, so provide other options such as check payments or money orders. You can also accept cash payments through vendors such as 7-11 or Walmart. The resident will pay cash at those retailers, and then a deposit will be made into your account.
Avoiding Eviction in San Diego
With just cause eviction throughout the state of California, it’s more difficult than ever to remove a tenant from your rental property. However, nonpayment of rent is always a valid reason to evict. With the virus shaking up a lot of financial security for tenants, it’s become almost impossible to evict a renter who cannot pay on time.
Communication is critical. You want to collect whatever rent you can, so be willing to talk about payment arrangements or agreements. The eviction moratoriums protects tenants from being removed from their homes, but they do not forgive the rent that is owed. Make sure your tenants understand their rights and also their responsibilities. It’s better for everyone if they’re able to continue paying rent or at least some portion of the rent that is owed.
Find good tenants by implementing a strict and consistent screening process. Then, make sure your rent collection policy is communicated and understood. Enforce that policy and keep the lines of communication open with your tenants so they feel comfortable talking to you if they run into a problem with payment.
This is our best advice for the current climate. We’d be happy to tell you more about how to ensure your rent keeps coming in on your San Diego rental property. Contact our team at Chase Pacific Property Management & Real Estate Services.
