In the aftermath of Covid, instances of renters defaulting on a lease have grown exponentially across the US. In fact, PolicyLink estimates that the nationwide total rent debt is upward of $20 billion, and 14% of those are in arrears.
So what can property managers do to mitigate risk, ensure timely payment, and provide a quality experience for both prospective and existing tenants? TheGuarantors has solutions.
When it comes to selecting suitable, reliable renters for your property, it pays to be diligent. An in-depth tenant background check provides a comprehensive look at the applicant, including everything from rental history to criminal records. TheGuarantors uses 1,000+ data points in evaluating renter risk.
A lease guarantee helps landlords qualify tenants who may not meet all the lease requirements. For example, someone who is self-employed might meet the income qualifications but not have traditional proof of income, such as pay stubs or a recent tax return. With a lease guarantee, TheGuarantors acts as a guarantor for the resident, enabling them to sign the agreement and move in, while protecting the landlord from default. It’s a win-win situation.
Maintaining strong lines of communication goes a long way to mitigate the risk of renters defaulting on a lease. It’s good practice to remind renters of upcoming payments by email, text, or phone. And if payments are still missed, it’s important to send follow-up notifications to arrange a transaction or to put other processes in place, such as extensions. TheGuarantors can help you improve communication with your tenants, as well as work as a mediator between landlords and renters.
For years, the “incentive” for many renters to pay their lease on time has been the addition of late fees or other negative means of reinforcement. But what if you flip the script and offered positive incentives for timely payers?
Using easy-to-source incentives like gift vouchers, hampers, cleaning services, or even rent discounts, you could encourage your residents to stay up-to-date with payments. Likewise, this would also help with keeping those communication lines open. That said, you may want to seek the advice of your accountant or financial advisor before implementing such a reward system.
Offering the option to take out security deposit insurance or replacement services will encourage a positive tenant-property manager relationship from the start. By reducing the costs at move-in and move-out, you’re giving renters more control over their money and showing them you have their best interests at heart. All while getting the peace of mind of knowing you’re covered in the event they default on their lease.
Renting a property is a tricky and confusing business, both for operators and renters. But TheGuarantors’ range of products and services have been designed to make that experience better for both parties. With our help, you can protect yourself and delight your tenants.