When tenants don’t pay rent, you’re left trying to manage your own financial responsibilities without the income you expected. It can be disruptive and stressful.
With the COVID-19 pandemic restricting what owners can do in terms of evictions, you have to work closely with your tenants to collect what you can. This is where a good relationship with your residents is so critical. If your tenants cannot pay because of job loss or reduced hours or other financial stressors due to the pandemic, try to find a solution that helps you both. Perhaps they can make a partial payment or agree to a payment arrangement.
The eviction moratorium is in place until the end of June. While it does not forgive the late rent that hasn’t been paid, it does prevent you from evicting a tenant for nonpayment of rent if that tenant has declared they’ve been impacted financially by the pandemic.
Things will get back to normal eventually, and when that happens, you’ll want to have a plan in place for addressing late rent and tenants who either cannot pay or refuse to pay.
At Alarca Realty, we believe the best way to avoid late rent payments is by establishing a consistent collection policy and by offering owners a lost rent protection plan.
Establish a Rent Collection Policy
Your Charlotte tenants will need to understand your expectations when it comes to rent collection. We recommend that you discuss how and when rent will be collected before your tenants even sign the lease and move in.
The lease agreement needs to include your rent collection policy and should be specific about:
- The amount of rent that’s due
- When rent is due
- Whether there’s a grace period
- How rent should be paid
- What the consequences will be if rent is late.
Consequences may be a late fee and steps leading up to and including eviction. Make sure your lease agreement is current in terms of North Carolina rental law, particularly regarding late fees.
Charlotte Property Management and Rent Protection
Avoiding late and missing rent is a great reason to work with a professional Charlotte property management company. Property managers can collect rent more consistently and on-time. We offer online rental payment options, which cuts down on late payments and really appeals to tenants who appreciate the convenience.
Many management companies will also offer protection against late or missing rent.
We have a protection plan in place that covers up to two months of lost rent. This plan will pay your rent if the tenant breaks the lease, is evicted, or dies during the tenancy.
It’s great peace of mind when you need to trust that your rental income will continue.
This protection plan is at no additional cost to our clients under some of our Charlotte property management plans. If you have questions about how you can protect yourself and your property, please contact us at Alarca Realty.