There are a lot of pitfalls and dangers in being a self-manager when you own a rental property, and we talked about those issues in a previous blog. One of the specific things we mentioned was that you should never let a tenant deposit money into your account because it can cause a partial payment scenario. We had a few questions about that, so today we’re providing some information on why that’s not a good idea and what kind of problems can result.
Property Management Mesa: Deposits and Partial Payments
Tenants should never have your personal information. If they have access to your bank account, you’re putting your privacy in danger. Once they deposit rent money in your account and you receive it, then it’s understood as being accepted, even if the tenants have only made a partial payment. You could take the money and return it, but what if you return the money and the check they deposited bounces? This is a hassle and very time-consuming for you as a landlord. It’s easier when you don’t let them deposit rent into your account at all. It might seem convenient, but in the end it only causes headaches.
Property Management Mesa: The Danger of Partial Payments
Accepting a partial payment changes the terms of your agreement. If the tenants don’t pay the rest of what is owed, it leaves you in a position that you cannot evict them in that month. You’ll have to wait until they default on the lease or don’t pay rent the next month. They might have good intentions, but if you accept a partial payment, you can’t evict those tenants unless you have a partial payment agreement. That agreement allows tenants to pay partially now and catch up with the balance later. Under this agreement, you still have the right to evict them if they don’t pay that balance. Most owners don’t know about this agreement or their ability to use it. You don’t want to be in a position where there’s not much you can do.
How Mesa Property Management Can Help
Using a property management company means you have professionals who are handling the rent collection and ensuring the tenants adhere to the lease. This protects you and lets the tenants know this is a serious contract, and they have to pay on time per that agreement. Sometimes we have to work with tenants who fall behind, and that’s fine. As long as we have an agreement and an understanding in writing, we can work with tenants.
We would be happy to talk to you more about this and see how we can help you. If you have any questions about rent payments or anything pertaining to Mesa property management, Tempe property management, or services in the surrounding areas, please contact us at World Class Property Management.