When you set out to become a landlord in South Jersey, rent collection is probably the task you look forward to the most. Nothing feels sweeter than banking that rental income.
Unfortunately, most new landlords find out sooner than later that rent collection is one of the most strenuous tasks. From dealing with tenants who always have an excuse to serial late payers, getting paid as a landlord has its fair share of trouble.
But is hiring a rent collection agency to do the dirty work worth it? Find out below!
The Cost of Hiring a Rent Collection Agency
Like most landlords, the first thing that springs to mind when you think of enlisting the help of a rent collection agency is the cost of hiring them. If you want to earn as much as possible from your rental property, it's not in your best interest to pay people to do something you can do on your own.
On average, a rent collection agency will ask for about 10% of the collected rent. Quite an amount, especially if you're struggling to make the mortgage.
The Benefits
Hiring a rent collection agency means taking a hands-off approach. You'll hand over the task to a third party whose primary responsibility is to ensure your rental income hits your account every month.
The right agency will have the resources, including technology and personnel, to implement rent collection strategies that work. They're particularly efficient at enforcing your rent payment rules.
Your rent collection service provider can implement more efficient rent payment processing methods. For example, they can provide a tenant portal with multiple payment options, giving your tenants great convenience. Flimsy excuses like forgetting to deposit the cash in your bank account will disappear.
Cost Benefit Analysis
So, are the benefits worth the cost?
It largely depends on your circumstances. If you're currently dealing with tenants who don't pay rent on time or are defaulting, don't even think twice about hiring a rent collection agency. They'll bring some order, steadying your income.
If you're a busy landlord or don't live in South Jersey, a rent collection service can be a valuable addition to your rental management team.
Your Options If You Don't Want to Outsource
If you still think getting property management support isn't ideal for you at this time, what can you do?
Your only solution is to up your game. Do a comprehensive tenant screening to ensure you're getting reliable tenants and draw up a solid lease agreement that clearly outlines your rent payment policies.
Tightening your tenant acquisition process will help you streamline your rent collection.
Secure Your Rental Income!
Your primary goal is to earn a steady income from your rental property. Hiring a rent collection agency comes at a cost, which can be steep, but the benefits usually outweigh the costs. However, you must hire a competent agency.
Alternatively, you can hire a full-service provider of rental management services. SoJay Property Management has everything you need. Our services include rent collection, tenant screening, maintenance, and eviction. We aim to grow your asset's value while maximizing rent to boost your investment.
Contact us to learn more about our services.
