For property managers overseeing manufactured housing communities, managing rent payment delinquencies is a crucial aspect of ensuring financial stability and resident satisfaction. While conventional options such as late fees or evictions exist, there are alternative options, like we’ve listed below, to streamline this process and foster a thriving community.
Report On-Time Rent Payments
Encouraging on-time rent payments is not only beneficial for your community's financial health, but also for the residents themselves. By partnering with a rent reporting service, like Boom, you can incentivize residents to pay on time by reporting their positive rent payment history. This positive reinforcement not only boosts their credit scores, but also instills a sense of responsibility and accountability—a win-win for both parties!
Report On-Time + Delinquent Rent Payments
Taking it a step further, consider reporting both on-time and delinquent rent payments. While rewarding punctual residents is essential, highlighting the consequences of late payments can act as a deterrent for potential delinquencies. This dual reporting system raises the stakes, creating a more transparent and accountable rent payment environment. Boom allows property managers to choose between reporting on-time only or on-time and delinquent payments (full-file reporting).
Utilize a Property Management Software (PMS)
Investing in a robust Property Management Software (PMS) can be a game-changer in efficiently handling your rent payment processes. Platforms like Rent Manager, Buildium, or Yardi offer features that automate legal invoices, posting them directly on individual residents' ledgers. This not only reduces the margin for error but also ensures a seamless and organized approach to managing payments. Boom currently offers direct integrations with these PMS platforms:
Automate your Tenant Communication
While many PMS platforms lack advanced communication tools, it is essential to establish a consistent communication system. Set up reminders for upcoming payments and delinquent accounts by using an external tool like LeadSimple or a modern email platform. LeadSimple users can directly integrate with their PMS to set up various workflows and automate email communications. Regular, transparent correspondence ensures that residents are aware of their financial obligations and any potential consequences for non-compliance.
Sign On the Best Tenants
Preventing delinquencies begins with selecting responsible tenants from the start. Utilize a comprehensive screening tool to thoroughly vet potential residents and ensure that you are bringing in tenants who are more likely to meet their financial obligations. An ideal tenant screening process includes income verification, rental history, credit history, criminal history, eviction history, and tools to detect fraudulent applicants.
Renew Responsible Tenants
Retaining responsible tenants is as important as signing them on initially. Make a conscious effort to recognize and reward reliable tenants during lease renewals and motivate them to renew their lease. Provide incentives, such as reduced rent or exclusive community perks, to residents that consistently pay their rent on time. A stable and satisfied tenant base minimizes the risk of delinquencies and maintains a healthy cash flow.
Rent-to-Own Model? Start a Rent Credit Program + Leverage Purchase Incentives
Does your community follow a rent-to-own model? If you do seller financing for your manufactured housing, you can utilize incentives to help residents own their home faster while decreasing delinquency rates. For example, a resident that submits timely payments for six months could be eligible for a lower interest rate. Alternatively, the Boom team often works with communities that offer “rent credit” programs. In short, a rent credit program allows tenants to contribute additional money, on top of their monthly rent, that will eventually go towards their down-payment when it’s time for them to purchase the home. Responsible tenants can be rewarded for consistent, on-time payments through rent credit bonuses—for example, your community can contribute $20 in rent credits after they pay 6 months of rent on time. Rent-to-own programs have the flexibility to introduce creative incentives for residents, and the examples provided are just a starting point for inspiration.
In conclusion, managing rent payment delinquencies in a manufactured housing community requires a multifaceted approach that combines positive reinforcement, consequences for delinquencies, software-driven solutions, and strategic tenant management. There’s no silver bullet solution, but it’s worth experimenting to see what works best in your community—the Boom team hopes these strategies are a good place to start.
Boom is an end-to-end SaaS platform helping landlords drive NOI and on-time payment at each stage of the renter journey—before renter move-in (BoomScreen) and during their residence (BoomReport)—while requiring little-to-no monthly maintenance for property managers. To learn more, visit Boom for Property Managers.