When you’re a real estate owner or property manager, you need to make sure your tenants understand when their rent is due. Without invoicing, real estate tenants may fail to pay the correct amount or forget to pay on time. With proper invoicing, you’ll greatly reduce the risk of late or incorrect rent payments. Here are some best practices for invoicing your commercial real estate tenants.
Send invoices a week in advance
Sending out invoices can greatly help eliminate missed payments or rent escalation payments. Invoices being sent out a week in advance give the tenant enough time to prepare for the payment without giving too much time where it could be forgotten. Real estate invoicing is easier for everyone when you bill your tenants correctly and they make their payments on time.
Remind real estate tenants of lease escalations
Rent escalations are easy to forget. Tenants get used to paying the same amount each month, and they may be stuck in autopilot when their annual increase comes around. Proper invoicing will save you the headache of having to reach out to the tenant to get the rest of the balance they owe you.
Send out invoices at the same time each month
Monthly invoices establish professionalism as a commercial real estate company. It sends the message that you mean business as a landlord. You probably rely on your phone company and utility company to send you a bill at the same time each month, and this is no different. When an invoice comes at the same time each month, your tenants will know when to expect it and they won’t be surprised when the due date arrives.
Be detailed
Your invoices should contain all the basic information that a tenant needs to pay their bill. This includes the date, invoice #, contact information, balance due, due date, and any other information that is relevant.
Quickly follow up with tenants on missed payments
Late or missed payments not only affect the tenant, but they affect how you do business with other people. As a landlord, you have payments to make to your suppliers and workers. The relationships with those individuals or companies can be damaged if late or missed payments continue to be an issue. In other words, invoicing will help you to pay your bills on time as well. It is important to monitor and follow up with those who are past due. That way, you can solve the problem as soon as possible and keep up with your own bills.
Automate your invoices
It’s difficult to keep up with invoices when doing everything manually, especially if you own or manage multiple properties. Instead of breaking out the pencil and paper, you can use STRATAFOLIO to automate billing based on each tenant’s individual lease. Our system is integrated with QuickBooks to help manage your accounting for real estate. You can save time and never miss another invoice or rent escalation again! Schedule a 1:1 demo to see how STRATAFOLIO can streamline and improve your CRE business.
