Making the Case for Payment Reminders

Written by Landlord Property Management Magazine on . Posted in Blog

Five Ideas to Help Turn Late Payers into Gold

By: Nick Frantz

Every month, whether I have a balance or not, I get an email reminding me that my credit card payment is due in 10 days. I’ve never been late with a payment, so initially I wondered, “Why did they send this?” When I recognized that it was part of a proactive strategy to ensure on-time payment, I understood.

On a list of traits that make up the ideal tenant, “pays on time, every time” has to be right up there at the top. These tenants are gold.  But there will always be tenants who are habitually late payers.  And dealing with tenants who cross the line from late to delinquent can be costly and tough to resolve.

With an always-growing to-do list and staff stretched in all directions, how do you get the best bang for your buck when it comes to cultivating high-value, on-time payers?

It’s easier to seek payments than to chase them down. Here are five ideas to consider for a low-cost, low-effort, proactive strategy to address payment compliance:

1.  Target your efforts towards habitually late payers. Zero in on the segment with the most potential for improvement and retention. Who knows why they pay late. Their habits are out of your control. Step up your communications to this group to seek their payments before the due date.

2.  Send personalized reminders that are most likely to reach your target. Use voice messages, text messages, emails, and even social media. Stagger reminders so the forgetful and unorganized will receive several.

3.  Protect everyone’s comfort level by adding an anonymous voice to your staff. For voice reminders, choose a natural-sounding, automated voice. You and your staff spend a lot of time and effort building good relationships with your residents. Contacting residents to ask for payments can be uncomfortable and embarrassing on both sides of the conversation. Get off the phone and out of the hot seat.

4.  Deliver reminders in the languages your tenants speak. It can only help!

5.  Get documentation. If you have to eventually pursue collection options, it will be helpful to have your efforts documented. Keep a file of reports that confirm your messages were received.

Seeking payments or chasing them down… a proactive approach beats a reactive response every time.

____________________________________________________________________________

About Nick Frantz

Nick Frantz is the National Sales Manager for Property Management Solutions at One Call Now, where he has worked since March 2011. He specializes in Property Management solutions – commercial and residential – assisting in communications between property managers and staff/residents. Nick holds a Bachelor of Science degree from Miami University.

 

One Call Now

www.OneCallNow.com

One Call Now 726 Grant St. Troy, OH 45373 |  Phone: 937-573-2331

PayRent.com