by Tony Gonzalez
February 7, 2012 10:40 AM
There are lots of excuses for not paying rent on a storage unit: I lost my job; I wrecked my car and have unexpected bills; I needed the money for medicine for my sick kids. Many owners and managers of self storage facilities do not like having to collect on delinquent rent. If you are one of these managers, there are several steps that you can take to prevent some of the hassles of collecting overdue rent.
First, put steps in place that prevent late rent. Consider setting up a process where you call all of your renters three days before the rent is due. This would be a quick, gentle reminder that the rent is due in a few days. Simply say something like, "Hi. This is John Doe, from XYZ Storage calling to remind you that rent is due in three days. Thanks for your time! Bye."
Then, when renters sign the lease agreement, tell them of this policy call so that they know in advance that you'll call them on a regular basis. They understand that everyone gets a call and that they aren't being singled out. Then, make sure that you unfailingly call everyone and remind them.
Offer renters the option to have their rent automatically paid. Many banks will set up automatic bill payment. It's easy and simple to set up. Then, once it is set up, the renter never has to worry about forgetting to pay the bill. The bank automatically pays the bill on time every month.
You could create a flyer with pertinent information to give to new renters. The paper could include hours that your office is open, who to contact in case of emergency, when rent is due (and that they will get a reminder call), and services that you offer (like a free moving truck). This gives them a physical reminder and reinforces the information that you told them at the time they signed the contract.
If rent is due on the 15th of the month, don't tell the renter that rent is late after the 20th. This puts in the renter's mind that they have a 5 day leeway on paying the rent.
Also, tell the new customer that if the rent is paid after the 15th, a late fee will be charged. This will encourage them to pay on time to avoid having to pay more money.
As soon as someone is late paying their rent, call them. This is a friendly I-know-you-probably-just-forgot type of reminder encouraging them to make a payment as soon as possible.
At all times, be tactful, courteous, and professional. You will develop a better relationship with renters and will be more successful at collecting back payment.
Sources Used:
"Tips For Property Managers On Collecting Rent." Commercial Property Management; 10 January 2012.
"How to Collect Late Rent Payment and How Much Late Rent Fees to Charge Tenants." Propertyd.com
"Self-Storage Rent Collection: A Guide for Facility Mangers." Inside Self Storage; 22 August 2011.