By Property Management Systems
PORTLAND, Ore. – If you have a property for rent in Portland Oregon, and you treat your rental properties as a business, you know that cash flow is king and your cash flow may be interrupted at one point if you have a tenant who asks you if you would be willing to accept a partial rent payment.
In today’s world, a partial rent payment can happen for a variety of reasons including the tenant lost their job, or their roommate moved out and left them with having to pay the full rent.
Regardless of the reason, your tenant gives for coming to you for a partial rent payment arrangement it’s important for you to weigh the situation carefully and consider the following before accepting their partial rent payment arrangement.
#1 – Make Sure You Get It In Writing
With a partial payment arrangement, you should always get the arrangement in writing so that your tenant is aware of what they have to pay, and when it’s due, including late fees, just so they don’t try to carry over the money that they are behind into the next month without catching it up.
#2 – It Also Depends On The Tenant
Although most landlords may want to get some of their tenants money now, than none of their money, the success of a partial rent payment arrangement also depends on the history of the tenant because, if the tenant who is living in your Home For Rent In Portland Oregon has a history of paying late, a partial payment arrangement may not be a good idea but, if your tenant has always paid on time in the past then agreeing to a payment arrangement with them may turn out to be a good idea.
#3 – The Same Policy Must Be Applied To All Tenants
As with anything in your business you have to extend a partial payment arrangement to all of your tenants because if you only allow one tenant to have a partial payment arrangement one month but other tenants are not allowed to make a partial payment arrangement in the following months then you could be accused of discrimination so it’s best to apply the same policy to all of your tenants.
#4 – Start Falling Back On Your Lease
If you don’t want to allow a partial rent payment then the simple solution to this question is to make sure that your lease is clear about not accepting partial payments and also your right to charge late fees and evict the tenant if they pay late.
#5 – Accepting Partial Payments Is Not Always A Good Idea
Most people who have owned homes For Rent In Portland Oregon for any length of time know that if you give tenants the ability to pay late, they will always pay late, and the same thing applies to partial payments since it’s possible that your tenant may never catch up on the rent that they owe you.
Worse yet, if you want to evict your tenant the court may see that partial rent payment that they made as their rent for the month and you may not be able to start the eviction process until the following month.
#6 – Discourage Your Tenants From Paying Their Rent Late
As a landlord / owner of Portland Oregon Rental Property one “key to success” with avoiding late rent payments, or partial rent payments from your tenants is discouraging them from paying late in the first place by doing the following:
- When signing new tenants make sure that they are aware of your late fees and the penalties they will face when they pay their rent late.
- Make paying rent as easy as possible; this should include offering your tenants the ability to pay their rent online or depositing the rent check directly into your bank account so you can avoid the old excuse of “the check is in the mail”.
- Offer incentives for paying their rent early including $50 off their rent if paid before the 30th of the month, gift certificates, or amenities like free WiFi.
- Always require multiple forms of communication with a tenant including email, mobile phone number, text, and work phone number just so you can reach them if they fall behind paying their rent or agree to a partial rent payment arrangement but don’t comply with your agreement.
#7 – Don’t Forget To Give Your Tenant The Rent Demand Notice
Last of all, but most important, when dealing with a tenant at your Portland Oregon Rental Property who has asked you if would agree to a partial payment arrangement with them you should always give them the Rent Demand Notice with your partial payment arrangement letter just so they are 100% clear that your intention is for them to ultimately catch up on paying their rent or they could still face further late fees and ultimately eviction.
Owing Portland Oregon Rental Property is a business and if you approach your rental properties as a business from the very beginning by following the tips in this article, and blog, you will have consistent cash flow every year and never have to deal with flakey or shady tenants who don’t pay their rent on time.
Does Your Home For Rent In Portland Oregon Have Property Management?
Besides having a strong lease another key to success with enjoying long-term, consistent cash flow from your home for rent in Portland Oregon is hiring a qualified property management company because a professional property manager like Property Management Systems will ensure that we find the best tenants for your rental who pay on time each month.
If you’re tired of managing your rental properties yourself, learn more about the property management service we can offer you by calling us for a free consultation at (503) 515-3170 or CLICK HERE to connect with us online.
We’ve served Portland Oregon property owners for decades and look forward to helping you simplify your portfolio of rental properties, and make more money from them, with our property management service.