02 Jan 2024
Collecting rent seems like a reasonable and "should be" simple task, but is it? The first of the month or the storage unit anniversary date comes along and the rush to come in and pay the rent begins. Pro-rating rent will cause the rush all at once, but anniversary dates can spread the process across the month and disperse the rush. Either way, there are various ways to make collecting rent easier for you and the customer.
Here are a QUICK SIX TIPS to make the process of collecting rent easier.
When renting to a customer, sign them up for automatic payment processing using their credit card. This saves both you and the customer time by having the payment process electronically automatically. The customer will be on time with their payment and also save themselves a trip to the facility. Additionally, the manager saves counter time by having the payment process automatically.
Electronic Funds Transfer can be set up with a checking account. This process saves your location on processing fees that would normally come from a credit card as well as the time processing the payment. There are check guarantee providers that can reduce your concerns about receiving a bad check.
Offer to have the customer pay a month or two ahead to avoid repeated trips to the location. This is even more beneficial when a customer is late on payment. Urge them to pay the current months rent and the following month to stay ahead. You could incentivize the additional month by offering to waive a late fee or having them sign up for auto pay.
One offer that isn't possible for some customers, but a real benefit for the long term customer. They can pay a years worth of rent to avoid any possible late fees and avoid potential rate increases for up to one year. I have seen some locations offer one month free if the customer pays a year of rent.
Updating the customer information is crucial when doing collections. Always attain an email and possibly an alternate contact. Phone numbers can change, but often emails are good for decades and most everybody has an email these days. Anytime you are doing collections, ask the customer if their address or other contact info needs updated. Use this call also to offer the automatic payment plan again.
Call and determine with the customer a specific date and time the payment will be made. If the payment isn't made at that time, call them as soon as that time passes as a friendly reminder. The agreement on date and time will increase the likelihood of the payment being made.
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Storage Authority Franchising is all about owning your own local self-storage business, supported by professional systems and expertise. We like to say, "You're in business for yourself but not by yourself." If self-storage is on your mind, don't hesitate to reach out to Drew Case at Direct: 513-582-0125 or Drew@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity. Your self-storage journey awaits!
