Frequently Asked Questions about Rent Collection Management Services
The first step is to define your goals. What do you want to achieve? How much money do you want to collect? How many tenants do you need to work with? Next, put together a list of any tools or technologies that will help you achieve your goals. Finally, determine which people in your organization will be responsible for implementing the process and making sure it runs smoothly. This will likely include managers, accountants, property managers, and other staff members who are directly involved in the process of collecting rent payments from tenants.
We handle rent collection and bill payments in the same way that you would. We send a reminder to your tenant about their rent payment date, and then we collect the rent on that date.
If a tenant’s rent check bounces, we will contact them and give them the opportunity to bring their account current. If they do not make good on the bounced check, we will take the next step in our eviction process.
The amount of time you should give your tenant to pay rent depends on the type of lease agreement you have with them. If you have a month-to-month lease, you can decide how long before eviction proceedings begin. If you have a fixed-term lease that ends in a certain number of months, then eviction proceedings will begin at the end of that term (unless otherwise specified in the lease).
The best way to collect rent is by using a secure online payment gateway. This will ensure that your tenants are paying their rent, and also that you're protected in case of late payments or non-payments.
If the rent has been paid late, we will contact your tenant by phone or email. Further processing will be carried out according to the lease they have signed (including penalty specifications regarding late payments).
If a tenant gives you a bonus check after they move in, you can choose to either deposit it into your account and use it to pay for their rent, or you can hold on to the extra money in case they decide to leave early.
There is no partial payment of rent. If a tenant pays only a portion of the rent, they are considered in default. This means that they are subject to eviction and the landlord may sue them for any damages caused by their failure to pay rent.
Under Ontario's Residential Tenancies Act, landlords cannot charge fees for late rent payments. Any clause in a lease that attempts to impose a late fee is unenforceable. The only legal remedy available to a landlord for non-payment of rent is to serve a proper notice and, if necessary, file an application with the Landlord and Tenant Board to recover the amount owed.
Payment plans can be a reasonable way to resolve an arrears situation without a Landlord and Tenant Board hearing — but only when they are handled correctly. Any payment arrangement should be documented in writing, signed by both parties, and structured so that it does not waive the landlord's right to pursue the full amount if the tenant defaults on the plan. Informal verbal agreements provide no legal protection. We structure and document any payment arrangements properly to protect your position throughout the process.
Consistent late payment is a pattern that can be addressed through the proper legal process even when the tenant eventually pays. A history of late payment is documented in the tenant's record and can support an N8 Notice to End Tenancy for Persistently Late Payment of Rent after a sufficient pattern has been established. We track payment dates accurately throughout every tenancy so this history is available if it is ever needed,