Heard a landlord at a coffee shop complaining about late rent and it got me thinking

I was at a Starbucks downtown last week and this guy was on the phone going off about a tenant who was 12 days late. He kept saying he wished he had a system for automatic reminders (like texts or a portal). It hit me that I've been doing the same thing for my units, just sending casual emails and hoping for the best. I spent that afternoon setting up free recurring texts through my property software. It took maybe 20 minutes and now I don't have to chase people as much. Anyone else use automated reminders for rent collection or do you still do it all manually?

3 comments

3 Comments

alex8203d ago

The thing nobody talks about is how late rent can mess with your own credit score if you're relying on that income to pay your mortgage on the property. I had a buddy who missed a credit card payment because his tenant was a month late and it wrecked his score for a year. Automated reminders are great but they don't fix the cash flow gap (you know, when you still have to pay the bank on the 1st even if rent comes on the 15th). Maybe landlords should talk more about building a buffer fund instead of just chasing reminders.

sanchez.ivan3d ago

Honestly @alex820 I get where you're coming from but I see it a little different. The buffer fund is smart for sure but the real problem is letting a tenant get a full month behind without any penalties or late fees built into the lease. If you have a solid lease that charges a flat fee after day 3 and then a daily rate after day 7 it creates urgency on their end. Yeah cash flow gaps suck but if you're relying on one tenant's rent to cover your whole mortgage that's a risky setup to begin with. A buffer fund helps you survive but it doesn't fix the root issue which is that tenants need consequences for being slow. I've had way fewer late payments since I started enforcing a strict late fee policy on day 4.

rivera.hannah3d ago

@alex820 makes a really good point. That buffer fund thing is huge. I learned it the hard way when a tenant ghosted me for two months. Started keeping three months of mortgage payments in a separate account. Saved my butt more than once. Automated texts are nice but that cash cushion matters more.