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Understanding Our Rent Collection and Eviction Policies: A Comprehensive Guide

Understanding Our Rent Collection and Eviction Policies: A Comprehensive Guide

Effective rent collection is key to successful property management and directly influences your investment’s profitability. Late or missing rent payments can lead to difficulties for property owners. Many owners and investors turn to a property management company to prevent these issues.

The effectiveness of a property management company hinges on its policies, procedures, and how consistently they are applied. This article delves into our specific rent collection and eviction policies and procedures, illustrating how we manage these crucial aspects of property management.

Our priority is to ensure our property owner clients receive their rental payments on schedule. This starts with comprehensive vetting of potential tenants and placing the strongest applicants in our properties. Applying this common-sense first step helps us avoid complicated eviction and collection scenarios. 

Despite this, bad things can happen to good tenants, who may face problems paying rent. This is when it’s important to have an experienced and resourceful property manager.

Turnovers and evictions often lead to lost rent and possible legal costs. Also, changes in laws can make evicting tenants challenging or sometimes impossible.

It’s important to note a significant legal development that affects Colorado eviction policies. On May 15, 2023, the Colorado Supreme Court ruled that the CARES Act’s 30-day notice to vacate requirement remains in effect for ‘covered properties.’ These include public housing, Section 8 voucher properties, Section 202 housing for the elderly, and properties with federally backed loans like FHA, VA, and USDA.

The Court clarified that the Notice Provision of the CARES Act, under section 9058, lacks an expiration date, and as such, they cannot impose one. The title ‘Temporary moratorium on eviction filings’ does not alter the provision’s specific requirements. This ruling means that for covered properties in Colorado, landlords must give tenants a 30-day notice for lease violations before proceeding with an eviction, superseding the state’s standard ten-day notice period.

In response, the Colorado Courts updated their Demand for Compliance form in June to reflect these changes, including the CARES Act requirements. This form is essential for landlords to remain compliant, avoid legal fees, and successfully navigate the eviction process if needed.

The Process

  • Our rent collection process is straightforward:

1st of The Month

Rent is Due

Rent must be paid by the 1st of each month.

1st of The Month

8th of The Month

Late Rent:

If rent isn’t paid by the 8th, it’s considered late.​

8th of The Month

10th Day of The Month

10-Day Notice:

If no resolution, or arrangement is made with the tenant by the 9th, we start the eviction process on the 10th.

10th Day of The Month

We disburse rental payments to property owners on the 10th of each month. If the 10th is a weekend or a holiday, payments are made on the 15th. Banks may need 3 to 5 business days to process these funds. This means weekends and holidays could affect the exact date owners receive their payments.

In the event we don’t receive rent by the 10th. We start the eviction process. However, due to its complexity and cost, eviction is our last resort. Depending on court schedules, the eviction process can take 2 weeks to 2 months. Evictions are costly, time-consuming, and can lead to lost rent. Also, experienced tenants may prolong the process through legal loopholes, adding to these challenges. We prefer to avoid evictions when possible.

While we actively work to resolve late rent issues with tenants, we simultaneously proceed with the eviction process to avoid delays. This approach ensures timely action if a resolution is not achieved.

Our Approach

It’s important to mention that if you don’t get paid, we don’t get paid. In our experience, the most successful way to keep rent payments coming in involves embracing the principles of consistency and convenience. These are two of the most important principles for successful rent collection.

Consistency

Consistency in expectations for tenants regarding rent collection is crucial for several reasons:

Convenience

The convenience of rent payment methods plays a significant role in the efficiency of the rent collection process. When a property manager offers multiple, convenient ways for tenants to pay their rent, it greatly enhances the likelihood of timely payments for several reasons:

To this end, we offer the following payment options for rent:

These options cater to our tenants’ diverse preferences and capabilities, ensuring accessibility and adaptability in the rent payment process.

In summary, convenience in rent payment methods is more than just a courtesy; it’s a strategic approach by property managers to increase the likelihood of timely rent payments, reduce administrative burdens, and enhance tenant satisfaction.

The Cost-Effectiveness of Retaining Good Tenants

Maintaining good tenant relations and working through interruptions in rent payments are pivotal aspects of our long-term strategy for successful property management. While punitive measures may seem like an immediate solution for ensuring timely payments, they often overlook the value of retaining a good tenant. In our experience, keeping a reliable tenant is easier and more cost-effective than replacing one. This approach is particularly beneficial in the long run for several reasons:

Our strategy is to balance firmness in rent collection with understanding and flexibility where appropriate. This balance not only aids in maintaining a steady income stream but cultivates a positive, respectful environment conducive to long-term tenancy and investment stability.

In Conclusion

Managing rent collection and navigating eviction processes are critical and challenging aspects of property management. Our comprehensive approach, which combines thorough tenant vetting with clear and consistent rent collection policies, aims to mitigate these challenges. We focus on establishing a mutual understanding with tenants and maintaining a reliable income stream for property owners. By offering a variety of convenient payment methods, we cater to the diverse needs of our tenants, enhancing the likelihood of timely rent payments.

Our experience has shown that this balanced approach ensures efficient rent collection and fosters long-term, positive relationships with tenants and property owners. Ultimately, our strategies are designed to protect your investment, minimize legal and financial complications, and maintain a stable, respectful environment for all parties involved in the property management process.

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