We actually A/B tested this for several months. Group A we communicated when due and various steps throughout the month with various types of communication, emails, texts, notices, calls etc. Group B we provided zero communication until they were 75 days past due.
Our findings were that by 30 days there was only a 1.8% difference in outcome. At 60 days that difference dropped to 0.9%.
We get a bit sucked in with the logical fallacy of confirmation bias thinking that because money comes in after our efforts then it was the direct results of our efforts. In reality the majority of that would have happened anyway and we just wasted a bunch of effort for very little gains.
I have an auto text reminder that goes out on the 1st. Then on the 5th I personally text those that still owe a balance and what the amount is. I also tell them they can call me if they have any concerns. My residents love it too.
I’m sure that this would depend on how many units your Property has. But at mine I monitor my delinquency after the second day of the month and I send out a little reminder at the end of day on the third for anyone who has not paid yet. That way they can have it in the dropbox or pay online prior to late fees going into effect on the fourth.
I have an email system so a day or so before the 1st I send out a reminder announcement and then after the 1st i keep up a rent reminder announcement. on the 5th i send out an urgent email that says it's the last day to pay without a late fee.
2 years 7 months ago#58793by Magnolia Ridge Gaffney
We send a general email out on the 3rd or 4th to those who still have not paid. Then we call and send an email to each resident on the 6th or 7th letting them know they still have a balance plus a late fee, and on the 14th we will send certified mail of late rent notices. I am very lucky to work in a community where majority of my residents pay!
We use BUILDIUM and most of our residents pay thru the resident portal. If they set up a recurring payment plan, they get a reminder prior to the first. We have a zero tolerance policy; rent is due on the first of the month and daily late fees kick in on the second, with a late notice being generated daily until the rent is paid.