Any tips to lower my delinquency each month?

I'm looking for tips to lower my delinquency each month! I work for a lower income property and typically my delinquency is around 8-9%. Also what works best for you all when trying to collect smaller balances around $50-$200? Anything helps!

Knock on doors.

Text each resident

Offer to do a giveaway raffle for people who pay rent on time. We do like a $50 visa gift card out of everyone who pays early/on time and do a random number generator on google to pick the winner from an excel cell !

Big bright red notices with balance due on them.
Makes then really mad at first but they start to learn that they can avoid the notice if they just pay the balance. Send out a balance due warning mid month and then a final warning notice when most people would get their second check.

Ruby Yvette this isnt legal in some areas, also is a privacy violation.

Sarah Trefz Watson very true, it depends on where you’re located so of course refer to your lease and local laws. I’d love to see other suggestions when a balance due notice isn’t an option. You have to get creative!

If they are on sec 8 let the work know. We did a promise to pay they had to have the money in before close out at the end of the day before I send them in for eviction and they got that extra charge they go in three times they got to go really before they should go and I knock on the door bright and early morning like I'm the popo. I would tell them money are keys I'm going to let you choose, but you are going to choose one today by 5

We found that statements prior to rent being due helped. Send them on or around the 25th of the month.

Does most of your delinquency stem from a particular type of charge? (Water, fees, damages, left over from prorated move in amounts) That answer might point to issues with move in procedures, communication with residents, etc. that could prevent small balances.
Regardless of charge type, clean up can be tackled! Any time payment is made in office, before accepting it, have the staff look up the resident's balance to make sure they're paying in full. (It can help to have staff keep an updated printed delinquency report handy if they can't take the time to pull up electronically.)
If you can, you might also change your settings in an online payment portal (if in use) to disallow payments unless they are full balance due or greater, at least until delinquency is under control. Sometimes auto payments settings are the biggest culprit to small balances.
It will take a little time but it's possible to get it down!

You know a lot of people don't know this, but if they are on sec 8 and move out with a lot of damages that if you send that bill to there worker the voucher holder has to pay or the lose their voucher.

Focusing on qualifications on the front end will work wonders lowering your bad debt and slow pays!

Dont accept next months rent if they havent paid their small balance. Text and let them know you wont be accepting May.

We sent out a letter to every door stating that we won't accept partial payments. Then it took 2 months of not accepting partial payments and returning partial night payments to the residents to get the delinquency at $0 here. We had several folks get quite mad that they were being charged late fees for refused payments, but we have the right to do that per our lease in Texas. Then be super vigilant about following procedures if your company wants you to take partials with a written agreement. Make sure to touch base as a friendly reminder the day before the payment is due. Then file eviction if they fail to follow through, period. People will talk once you file that first eviction or two. It hurts at first, but you will prevail! It's all about training the residents that rent needs to be their top priority.

I always send a nice email saying please pay the $ balance so I'm not forced to file eviction which would add additional costs to their balance. If you're nice and they know you don't want to make it worse, they'll pay.
Some states don't accept partial payments which would elliminate the small balance.

We never accept partial pmts and if it slips thru I tell them late fees will continue to be assessed I have 356 b property and my delinquency is less than 1%

Offer some sort of incentive. Try early bird drawings. No late fees for 3 months and you receive a free carpet shampoo!

Don’t waive late fees. Promise you this, not waiving the late fees will be rough a month or 2 but after people will fear being late on rent with the fees.

Let them know that if the balance isn't paid you may not be able to accept the next months rent...it may sound harsh but if it keeps rolling over it usually gets to a point where they can't pay it...the bottom line is people will do what you allow them to do. At some point you have to put your foot down and protect the investors/owners you work for...

I don’t accept partial payments. So I pull any check that doesn’t match and call them and email them and give them the amount they owe. Tell them I have voided their check and they need to pay in full.
If you post checks and do this everyday you will drop your delinquency immediately and the word will spread.
Also—- charge them a late fee on a balance over 30 days.

Send notices weekly, phone calls etc. it also helps when you notice them for anything over $1. They don't like it at first but they also don't like to find out they've been carrying this small balance and "no one told me until it was over $100"...

First, anyone offering move in specials? If so, write the addendum to show that the rent is $50 more per month (or whatever your late fee is) but if they pay by the first of the month, they receive a $50 discount. (You’re basically getting the same market rate you were asking and if they don’t pay by the first you get $50 more!) If they pay after the 1st...no matter if you have a grace period or not, they do not get the discount. Payment on the 2nd causes them to loose the discount. Charge late fees on ANY outstanding balance. They will get mad at first but learn to pay on time and in full. Always apply The payments to the past due fees/small balance first and rent second. That way you can charge late fees on missing rent. Never take partial payment.

Keep them accountable and follow up. Don’t accept partial payments. We can’t make partial payments on our mortgage so they need to follow suit.

Also, When signing leases, always, and I mean always, go through the lease with the resident new or renewal. If you say, “Rent is due on the first and late on the second.” It is in their mind that there is no grace period. If they ask about a grace period, place your pen on your desk, and say “ Wait, do you plan on being late?” (Always look concerned) They will stumble across it and say no they were just asking, and you say good, because were very strict on late payments and we don’t want that to happen to you! I have ran properties where murder is the norm and low income is an understatement. This has been very helpful and proven over 4 states and 3000 residents to work!! Make sure you always know your states laws.Train your staff to discuss rent payment right from the beginning, and never waiver from the same policy over and over again. Hope this helps someone!

If they get sent to the attorney give them a buy out of the attorney option (or 2) in order to accept their payment make them sign a form if they are late again they will have to turn in keys. It sounds harsh but really helps!

TOUGH LOVE MOMMA
Stand your ground
DO NOT WAIVE LATE FEES! Ever! Word will get out move over there pay your rent when you want. Believe me word gets twisted and around that way.
I
Call
Text
Leave VM
Send an EMAIL
And I post those lovely
HOT PINK NOTICES
FLUORESCENT YELLOW NOTICES
BLIND ME YELLOW NOTICES on that front door
Where EVERYBODY and their grandma can see them.
Nothing irks or embarrasses a tenant more than daily notes like this for all to see
And no I’m not being mean I’m doing my duty in the career I have and I am not going to look embarrassed in front of my boss bc tenant number 1 just doesn’t wanna pay.
If you have to follow up with lock outs do it.
Stay consistent
Post the notices
Call as well
They will pay or do you the favor and move out.

When you talk to them find out when they get paid next and go show up and knock on their door on that day in the evening when you think they will be home or text/call at the very least for a reminder. If you have to resort to this as a last ditch effort....tell them the owners are making changes and cracking down...they are considering non renewing tenants who don't pay on time and in full and if they are asked to move you won't be able to give them a good rental reference at this time. 3 or more late payments in 12 months and most companies will not rent to them. Do they realize this?

Get information on local charities that may be able to assist your residents with food, rent, or utility assistance. This will help them be able to use their money to pay rent.

Do not accept or post unless it is the entire amount Call and tell them they only have a certain time limit to pay in ful or you will add late charges and return the payment they gave you.... It has worked for me

Send lease violations for small balance after the 10th ... that always worked for me

Send out balance due reminders on the 2nd or 3rd before any late fees hit. Encourage residents to pay before the late fee by saying “if you pay now, your total due is X, but if you pay after late fee hits, your total is X + late fees.” Residents appreciate the advance notice in my experience and will make payment sooner and are less likely to argue over late fees. This has helped me on a variety of properties from tax credit to class c to luxury lease ups.

Do not take partial or short payments . Return requesting full amounts within 24 hours

Have a small monthly drawing for residents who pay their rent on-time. You will be amazed how excited your residents will be about this...and how eager they are to have a chance at winning a $25 gift certificate for dinner or groceries!

Simple... pay or go. Do that for 2 months word gets around and YOU become priority. Ive fired mgrs and new mgr have that philosophy and bam... no more issues! Don’t be that mgr looking for work. Its your job or there home... collect the money

I've been 0 delinquent for 3 months in a row and the key word is CONSISTENCY. You need to let all your residents and future residents know you rent policies and what your expectations are. Don't take partial payments and make sure that your online payments only accept full payment. Be firm and don't waive late fees. Everyone signed a contract to pay their rent on time every month! We have to treat everyone the same in compliance with fair housing.

We allow late payments through close of business on the 5th. Run A/R first thing on 6th. If they aren't paid, or I don't have a check in hand, late fee is assessed. Then I print a 10 day pay or quit with current balance including late fee, print it on Neon Pink paper, and post on front doors.
Consistency is the key!

This thread is very eye opening! There is technology available (even for underbanked individuals) to eliminate quite a few of the issues brought up here.

As I'm sure most of you are aware, acceptance of a partial payments equates to delinquent residents abusing the lease provisions that were put in place to kick start the eviction process. Moving to online payments empowers your property manager by allowing technology to do the heavy lifting. Settings within the portal will not accept partial payments and when residents are delinquent or have had multiple late payments. At this point the resident must pay with certified funds which bogs down your office handling paperwork and increases the risk of fraud.

We've recommended that our clients move to an online solution that provides certified payments and mobile check scanning to kill a few birds with one stone freeing up time to focus on day-to-day operations and resident retention.

I'm not sure where you are located, but the name of the game is consistency. You can utilize a company ClickNotices to automate ALL of your delinquent notices in the form of First Class Mail, Certified Mail, Digital (Email & Text), depending on what is required/ acceptable in your jurisdiction. ClickNotices even provides streamlined filing and eviction services as well, and can often post fees back to your tenants ledgers for you. Send us a message for more info! [email protected]

Report your resident's payments to the credit bureaus.