While New Jersey's cost of living is higher than the national average, it's more affordable than New York's. Moreover, Yahoo recently pointed out that you "won't find a safer state" than The Garden State. It also enumerated NJ's safest and cheapest cities, with New Brunswick making the list.
Since places with positive qualities typically attract more residents, including renters, New Brunswick can be lucrative for landlords, provided they practice the best strategies for rent collection.
Our PMI Central New Jersey experts have shared property management tips for collecting rent efficiently and on time, so read on.
Adopt Online Rent Payment Methods
In a recent report, Fit Small Business revealed that more consumers now prefer digital payments, so much so that 41% plan to go all-digital in 2024! The report also stated there are 3.4 billion American digital wallet users, a number expected to increase by over 50% in 2026.
Considering the increasing number of people opting for digital payments, it's wise to adopt them as part of your New Brunswick rent solutions. You can make paying rent more convenient for your tenants, making them appreciate you more and encouraging them to renew their lease.
You also benefit since many online payments get processed in real time. You can quickly track who has paid and who hasn't on the go, as long as you have internet.
Implement an Incentive Program
Encourage your tenants to pay earlier by giving them incentives. Practical incentives include small rental discounts, grocery gift cards, and tech upgrades.
Early rent payments benefit tenants by rewarding them for their excellent behavior and helping them save money. Besides, when tenants pay their rent early, they can avoid the temptation of using it for non-essentials.
As a landlord, you also benefit by getting your income earlier, which helps ease your stress. Moreover, well-thought-of incentives can make your renters feel you care about them. A positive perception of you can boost their satisfaction, a crucial factor in keeping your best tenants.
Enforce Late Fees
Charging late fees is like a reverse psychology incentive for tenants to always pay on time. After all, who wants to pay more than what's necessary?
However, know there's a limit if you charge late fees.
Under New Brunswick Rent Control Ordinance 5.80.290, landlords can charge fees for late rent payments, provided they don't exceed 10% of the monthly rent. So, if you charge $1,000 monthly for rent, the most you can charge as a monthly late fee is $100. You can lower it to around 5% if it's too steep.
PMI Central New Jersey: Simplifying Rent Collection
As a landlord, rent payments are likely your primary, if not only, source of income. Therefore, you'd want to ensure you can collect them on time and in full as much as possible.
Our highly experienced team of property management experts at PMI Central New Jersey can help. We use the latest and most innovative technology to facilitate the overall management of our client's properties. Our services include rent collection, rental property analysis, tenant screening, lease enforcement, property maintenance, accounting, and eviction protection.
So, call us today if you're ready to take your New Brunswick properties to new heights. We'll even provide you with a free rental analysis!
