Utah's economy boomed after visitors spent almost $12 billion. Not many people think of Utah as a place to vacation, but its beautiful scenery makes it a top destination.
Park City, Utah is popular for world-class skiing, cultural events, and mountain passes. Rental property owners can make additional money renting out their homes for vacationers.
Rent collection is one of the most important duties of a short-term rental property owner. However, you need to do it right. Keep reading to learn more.
Get the Details in Writing
A lease agreement between you and your short-term tenant is legally binding. Take advantage of this legal document by laying out rent collection requirements.
A renter should be able to read the lease and know their responsibilities. With all of the information in one place, it's easier to enforce the rules.
To receive timely payments, landlords should include the following in a short-term lease agreement:
- Rent due date
- Rent payment method(s)
- Late fees
- Overdraft fees
- Rent amount
If you offer prorated rent for your vacation home, include this in your agreement as well.
Offer Various Payment Methods
Online rent collection is a great way to make rent collection more efficient. Rather than having renters pay via certified mail or in person, they can pay rent online.
Tenant portals offer various payment methods that are more convenient for renters and landlords.
One of the greatest features is that tenants can schedule automatic rent payments. Each month, money will be automatically taken from their account. There will be no excuses for forgetting to pay rent with this feature.
While many short-term rentals last less time than a month, it's important to consider this feature for month-to-month leases.
Online rent collection means receiving rental property income quickly. You can set up your business bank account to receive income only.
Track Rent Collection Records
To keep the cash flowing, track your records. This allows you to get a full picture of your income.
You can use rental property accounting software to keep everything organized. Be sure to open a business bank account where all your income can go.
Keeping your records in order will help you when you need to report income at the end of the year. Even if owning a vacation home is a part-time gig, you can still get audited by the IRS as a business.
A property manager will help you implement rent collection programs that work for your needs.
Hire a Park City Property Management Company
Park City, Utah is a great area for short-term renters. To ensure your renters are paying the full amount, utilize these rent collection tips.
At PMI Mountain Collection, our property managers provide professional bookkeeping and accounting. This includes collecting rent and other fees.
With more than 30 years of experience, we know what it takes to make memorable vacations happen. As the premier management company in Park City, we can work with you to meet your professional finance goals.
Learn more about how we provide excellence in management by contacting us today.
