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COLLECTING OF LATE PAYMENTS BY HIGH RISK MERCHANTS

If you are a landlord then you will be accustomed to accepting late payments. The real fact is you may have tenants who don’t pay their bills on time. This happens repeated and is not a one time issue. You, being a landlord, should know how to deal such issues before renting out your property to people. Don’t be happy that your tenant is a very nice man as he has paid you on time till today. You can expect him to default at any time and therefore you should be ready to deal with such situations. The good news is that, handling late payments is not as difficult as you think.

You definitely have to put some effort and time for this, but in the end you can reach some resolution. As soon as you are faced with late payments, you have to start the resolution process or you may be in more trouble. Though, you may be very inconvenienced by this process, if you don’t start collecting late payments right away you will loose out on a lot of money.

Firstly, you should mail a letter to the tenant reminding him of his bill. In several cases the tenant would have actually forgotten his date of payment. As soon as he receives your reminder he will pay for his bill and you will get your money. In such cases you should end the matter there and move on with life without harassing your tenant. However, things don’t work so smoothly all the time.

If you don’t get a reply for your mail then you should take further steps to get your money. You should call his using a phone and speak to him. Explain to them that they have to pay the rent. In most of the cases, a call will scare them and they will send you a cheque immediately.

The last step you can take, after payments start to mount up, is to ask your tenant to leave. No one desires to take this step, but it is unavoidable when your tenant does not pay. Therefore, you should ask him to leave or make the payments which are due immediately.

The bottom line is collecting of late payments is not very simple. However, the chances of evicting your tenant are very minute. But remember, if you don’t collect the late payments or take steps to stop it then you will be loosing a lot of money each month.

One other way to encourage your tenant to make the payments on time is by offering him a marginal reduction in payment it he makes it on time. You can offer him a greater reduction if he agrees to pay 3 months rent in advance.

You can also hire a collection agent which may be a costly and unfriendly solution.

You can also apply for a home business merchant account and accept credit card payments from your tenants. This is a good option as you will get your payments on time. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.