When businesses come and go it is usually down to poor financial management but that isn’t necessarily the fault of the business, in fact, it usually isn’t. The customer can be the wrecking ball. Having property rental software with a credit control module could be the difference between a business with a successful future ahead or one with a ‘For Sale’ sign going up.Here are 3 tips to avoid being struck by the debtors in the ever-changing property industry.
- Check – People never change. That isn’t 100% true, there will be lots of people who have learnt from their mistakes but taking that risk could be damaging. When you are filling your next vacant property research the tenants carefully, don’t just rely on character references from friends, family or colleagues, do thorough financial inspections but most importantly find out from their previous landlords what they are like as tenants on sites such as Home Let.
- Watch for Changes in Behaviour – Tenancies can go on for a considerable amount of time, do you know if your tenant’s circumstances change? Visit the properties regularly to ensure that it is being looked after. You don’t want to have let it out for two years and be shocked to discover it has been left in an unliveable state by careless tenants.
- Monitor Accounts – You probably find that most of your tenants pay their rent on time, on the occasion that it is late they do have a valid excuse. If that one-off ‘sorry, I forgot’ becomes a regular fixture you might want to assess the situation before it gets out of hand. Always have a regulation in your contract stating that regular late payments could lead to ejection. You don’t want to go in hard if they miss a payment by a day or two and upset your tenants but if it becomes a fight to get your money then these aren’t the tenants you want.
If you are looking for property rental software which will keep your business in business then Decorus for Sage comes with tools for a bright future!
The credit control module is the perfect addition to reduce debtor days and bad debt. Over a quarter of small businesses in the UK are kept waiting a month or longer for payments and spend almost a £1000 a month in time or contractors trying to get it back before it becomes unpayable.
This module does the debt chasing for you so that you won’t be wasting time or spending your own money trying to reclaim what should be yours in the first place as its automated features keep on top of those reluctant payers or alert you before crisis point.
Book an on-line or on-site presentation of our property rental software by completing our contact form or call 01142 307305 to see how your business can survive in the future.