Recommendations for the Successful Collection of Rent

Being a successful rental property owner or manager requires the prompt collection of rent. Unfortunately, this can sometimes prove difficult.

Here are recommendations to improve your collection of rent.

Screen Tenants

Tenants should be carefully screened. Individuals that have shown responsibility in the past will likely be responsible in the future. Consider very specific criteria to apply to potential tenants. However, be careful that the criteria does not conflict with applicable laws against discrimination. Criteria should be applied equally and regardless of gender, race, or other such discriminatory methods.

Review credit reports. Although a credit report will likely not include rent payments, it will show how well an individual paid other creditors and will reflect past judgments and debts.

Check references. Although previous landlords are not required to provide information to you, you can ask them if they would rent to the tenant again.

Require an income that is at least three times the amount of the rent.

Create a Rent Collection Policy

Create a written rent collection policy that helps ensure the equal treatment of all tenants and to confirm what is expected of them. It should include the exact rent amount each month, how rent payments are made, if there are any grace periods, and the consequences of a bounced check or default. All of this information should be included in a lease agreement with the tenant.

Automate Payments

Consider rent payments via an automated system, such as auto-pay or auto-deduct. There are several ways to automate payments.

An Automated Clearing House (ACH) will automatically withdraw money from your tenant’s bank account. To set up an ACH, you will need to have the tenant sign an agreement that allows you to withdraw the money.

You can also ask your tenant to pay their rent by setting up recurring online bill payments with their bank so that a check is automatically issued and mailed to you each month.

Recognize Responsible Tenants

If you have a tenant who always pays in full and on time, cares for the property, and follows the rules, consider giving them a gift card or gift basket as a thank you during the holidays or when they are ready to renew their lease. Make sure that the property is well maintained for them and that their concerns at the property are addressed on time and properly.

What to do When a Tenant Fails to Pay

Talk to your tenant if they are delinquent in paying their rent. Ask them when they will make their rent payment, how much they will be paying, and what method of payment they will be using. Try to work with your tenant before further action is necessary.

Eviction

Ultimately, if a tenant will not pay rent, or is in default of your lease in other ways, it may be necessary to file for an eviction. Evictions seek to remove the tenant from your property and seek the collection of any amounts that may be owed to you. Strong leases that are in conformance with applicable law, and making sure you follow the very specific legal requirements for the eviction process, including a notice to quit, are necessary for a successful result.

Give the experienced collections attorneys at Bingaman Hess a call at 610.374.8377 or find us online. We can help you determine your best course of action. We can review your existing tenant lease or draft a new one. We can also assist you with the eviction process and the collection of amounts owed to you. If filing a lawsuit is necessary, we will always 1) do our best to settle out of court (saving you legal fees), 2) assertively represent you if your case goes to court, and 3) help you collect amounts you are owed if a judgment is entered in your favor.

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Business Succession Planning

By Mahlon Boyer • May 30, 2026

Business succession planning is an important process that helps business owners prepare for the upcoming transfer of ownership and leadership. Whether the transition involves passing the company to family members, selling to business partners or transferring ownership to outside buyers, having a clear succession plan helps reduce uncertainty and protect the long-term security of the business. A careful plan can also minimize disputes, preserve business value and ensure continuity in periods of change. Planning for Business Transfer The first step in business succession planning is identifying how the business will be transferred and who will assume control. Business owners should evaluate their long-term goals, retirement plans, and the financial needs of both the company and their family members. Some owners choose to pass the business on to children or relatives who are already involved in operations. Others may transfer ownership to key employees, business partners or third party buyers. Each option has different legal, operational and financial consequences. A successful transition often takes years of preparation. Potential successors may need leadership training, operational experience and gradual increases in responsibility to ensure they are ready to effectively manage the business. Good communication with family members, partners and stakeholders is also important to avoid misinterpretations and conflict. Business owners should work with legal and financial professionals to create formal succession documents, update corporate records, and establish a realistic timeline for the transfer process. Use of Buy-Sell Agreements Buy-sell agreements are an essential part of many succession plans. These legally binding agreements specify what happens to the interest of a business owner if certain events occur, such as retirement, disability, death or voluntary departure from the company. A buy-sell agreement typically defines who may buy the shares of the departing owner, how the business interest will be valued and the terms of payment. This structure helps maintain stability and prevents ownership disputes that could disrupt operations. For businesses with multiple owners, buy-sell agreements provide understanding and protections for all parties involved. They can prevent unwanted external ownership and ensure that remaining owners retain control of the company. Funding mechanisms are also important. Many businesses use life insurance policies to fund buyouts in the event of an owner's death. This allows surviving owners or family members to complete the transfer without putting financial hardship on the business. Tax Considerations Tax planning is an important part of business succession planning. If the transfer of ownership is not well planned, the business owner and successor will face a substantial tax liability. Depending on how the transfer takes place, the owners may face capital gains, estate, or gift taxes. With good planning, these tax burdens can be reduced with trusts, step-by-step ownership transfers, family partnerships, or changing the type of business entity. Another important factor is valuation. A proper valuation of a business is important for determining tax liability and ensuring that everyone involved in the transfer is treated fairly. Business owners should regularly review their succession plans with accountants, tax advisors, and attorneys, as tax laws are often changing. Regular updates keep the plan in line with changing legislation and the business’s needs. Let Us Help You Navigate the Essentials of Business Succession Planning Don’t wait! Talk to one of the experienced estate planning attorneys at Bingaman Hess today at 610.374.8377 or contact us online. This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.