Proven Strategies West Michigan Landlords Use to Maintain Cash Flow
Rent collection can make or break a rental portfolio, and yet, it’s one of the biggest challenges property owners face. Even one missed payment can throw off your cash flow, strain your reserves, and create unnecessary stress.
But here’s the good news: there are reasons why late payments happen, and knowing these reasons can help you create strategies to prevent them. In this blog, we’ll break down the most common roadblocks, share six proven strategies we use at United Properties of West Michigan to improve collections using transparent, data-driven systems.
Common Barriers to Effective Rent Collection
Even the most well-intentioned tenants can fall behind on rent. Recognizing the root causes helps landlords develop systems that prevent problems before they start.
1. Poor Tenant Screening
A tenant’s past behavior is often the best predictor of future payment patterns. Skipping crucial checks on income, rental history, or eviction records can result in high-risk placements. Todd Ortscheid, a leader in the property management industry, notes in his newsletter that TransUnion data show that tenants with even one prior landlord debt have a 23% default rate, and those with two or more have a 35% default rate.
2. Over-reliance on Credit Scores
Traditional credit scoring models were designed for consumer lending, not rent payments. While useful, they don’t always reflect how consistently a person pays rent. Ortscheid states that scores can create what’s called survivorship bias, when landlords who rely solely on credit scores may inadvertently filter out good tenants or fail to see risk indicators like prior landlord debt.
3. Ineffective Communication
Tenants often fall behind simply because of communication breakdowns. Vague instructions, unclear late-fee structures, or inaccessible payment portals can all lead to confusion and delay. For example, if late fees aren’t consistently applied on the same date each month, then tenants may become more accustomed to paying their rent late.
4. Limited Payment Options
Requiring tenants to pay only by check or in person creates friction. In a digital world, convenience is key, especially for younger renters accustomed to online payments or disabled renters with accessibility barriers.
5. Weak Enforcement Policies
If a tenant learns that late fees aren’t consistently enforced or notices go unanswered, the incentive to prioritize rent diminishes. Firm but fair enforcement builds accountability.
Six Proven Strategies to Improve Rent Collections
1. Strengthen Tenant Screening with the Right Data
The best rent collection strategy starts long before a lease is signed. At United Properties of West Michigan, our approach centers on transparent, fair, and data-backed screening criteria that focus on what actually predicts payment performance:
- Income verification: We confirm applicants can afford rent using a 3x income-to-rent ratio.
- Rental history: We confirm applicants have no unpaid rental debt or evictions without a qualified co-signer.
- Background: We request landlord verifications and assess for issues that could impact tenancy stability and reliability.
- Credit context, not cutoffs: While we review credit scores, we don’t deny based on credit alone. Instead, we look at patterns and supporting factors like consistent rent payments and positive landlord verifications.
This approach reflects the same insights highlighted by Ortscheid’s Experian dataset: rental history and eviction data are far more predictive than credit scores alone. By focusing on these metrics, landlords can reduce default risk without unnecessarily excluding otherwise qualified renters.
2. Set Clear Payment Expectations from Day One
- Clarity prevents confusion. Outline every detail of your rent payment process in the lease and tenant onboarding materials, as well as any payment reminders or late payment notices:
- Due dates and late fees (e.g., rent due on the 1st and late on the 2nd)
- Accepted payment methods (e.g., credit card, ACH, money order, etc.)
- How payments are applied to charges (e.g., oldest balance first, then rent)
- Contact procedures for financial hardship or partial payments
At United Properties, our lease agreements clearly define rent timelines, accepted payment channels, and late-fee structures to minimize disputes. Tenants know exactly when and how to pay, as well as what happens if they don’t.
3. Offer Multiple Convenient Payment Options
Offering multiple payment options reduces excuses and increases on-time rates, and digital payments are now commonplace and expected by many.
Running payments through an online portal allows for digital receipts and timestamped payment details that help with possible disputes. For property owners or managers, digital payments also help simplify owner accounting and audit tracking.
Suggested payment options include:
- Securely online via ACH or card: This is the most popular method and allows for setting up auto-pay to ensure timely payments each month through the online tenant portal.
- At retail partner locations: This method allows for cash payments to be made at select retail locations (via CashPay) or for other in-person payments to be made to a location closer to the tenant.
- With a check or money order: This method is best for tenants who don’t wish to make payments online or with a card. Checks can typically be mailed or dropped off in person.
4. Motivate Tenants with Valuable Incentive Programs
Positive reinforcement can be as powerful as policy enforcement. Incentive programs motivate tenants to prioritize rent, creating a culture of accountability and reliability. This can be offered in several ways, one of which is including options like credit reporting and resident rewards in a resident benefit package.
- Credit Reporting: Rent payments are reported to major credit bureaus, helping tenants build positive credit through consistent on-time rental payments. If you choose to offer positive and negative credit reporting, then not paying rent on-time would negatively impact tenants’ credit, which adds an additional layer of accountability.
- Resident Rewards: Using a resident rewards program allows tenants to earn reward points for on-time rent payments, which can then be redeemed for gift cards, raffles, and other perks.
Offering useful incentives transforms rent from an obligation to an opportunity, encouraging tenants to pay on time and stay longer, while landlords enjoy fewer delinquencies and reduced turnover.
5. Act Quickly When Payments Are Missed
Speed and consistency protect the owner, as well as the tenant relationship. Even with the best systems and tenants in place, late or missed payments can still happen. A delayed or inconsistent approach to handling these situations can cost you money while unintentionally communicating to tenants that not paying rent or paying rent late isn’t a big deal.
Maintain clear boundaries with tenants while protecting your investment by:
- Immediately send past due rent reminders to notify tenants who may have simply forgotten. This can help resolve late payments before they escalate.
- Issue formal notices on schedule to prevent filing delays. In Michigan, landlords must send a 7-Day Notice to Quit for nonpayment of rent. Not only does this serve as an official warning to tenants that they must pay their rent, but it also helps ensure compliance and prevent filing and court processing delays in the event the tenant doesn’t pay and you need to proceed with a non-payment of rent case.
Having and following efficient processes helps recover rent faster and minimizes the risk of long-term delinquency. Consistent follow-up reinforces the importance of timely payments, maintains professionalism, and preserves positive tenant relationships whenever possible.
6. Build Strong Tenant Relationships
Communication is vital, and a disconnect in one area (like maintenance) can negatively impact another area (like timely rental payments). To turn proactive communication into consistent cash flow, try the following:
- Prompt responses to inquiries. Aim to respond to emails and voicemails within 24 hours at most. If you won’t have the information needed to reply within that timeframe, check in to let the tenant know when you will follow up, and stick to it.
- Come alongside tenants to find solutions. If a tenant communicates financial hardship that will impact their ability to pay rent, offer information for assistance programs that they may qualify for. If there’s a charge on their account that can be placed on a payment plan, share those options and help determine what would be manageable for them.
- Respond to and complete maintenance requests in a timely manner. Timeliness is subjective, so ask yourself: how long would you be comfortable living with the reported issue? For example, how long could you reasonably go without a working refrigerator? One day, maybe two days? Also consider whether the issue affects habitability under local housing authorities. At minimum, acknowledge receipt of a maintenance request as soon as possible, even before scheduling if scheduling can’t occur immediately.
When tenants feel heard, respected, and supported, they’re far more likely to communicate proactively, prioritize rent payments, and remain long-term residents. Strong relationships build trust, and trust builds consistency in payments.
Our Approach: Fair, Data-Driven, and Transparent
At United Properties of West Michigan, we take a balanced, evidence-based approach to rent collection and tenant screening to keep delinquencies below industry averages while maintaining tenant satisfaction:
- Transparency: Applicants know our criteria before applying. Full details are available on our Application Criteria page.
- Data-driven decisions: We focus on rental and eviction history rather than blanket credit cutoffs.
- Accountability: We enforce late-fee policies, as well as legal action for unpaid rent. Additionally, our Resident Benefit Package reports rent payments to major credit bureaus and provides reward points via a resident rewards program, rewarding tenants for consistency and helping owners reduce risk.
- Compliance: Our practices align with fair housing laws and industry best practices, ensuring every applicant is evaluated consistently and ethically.
This structure reduces delinquencies while broadening your qualified tenant pool, which is a win for both landlords and residents. By coupling structure with reward, we help owners achieve stable cash flow while creating an environment where tenants are motivated to stay long-term.
The Bottom Line
Improving rent collection isn’t about being strict, it’s about being strategic. By applying data-driven screening, clear communication, tenant incentives, and consistent processes, landlords can significantly reduce late payments and protect their investments.
If your rent collections feel unpredictable, it might be time to evaluate your systems. Whether you self-manage or partner with a professional property management company, success comes from a balance of fairness, accountability, and proactive engagement.
Ready to Improve Your Rent Collections?
At United Properties of West Michigan, we help Grand Rapids landlords achieve consistent, predictable income through fair screening, efficient systems, and tenant accountability tools that work.
Visit our website to learn how our proactive approach to property management keeps rent flowing and investment goals on track.
Sergio joined United Properties in 2020. He is a graduate from Pickens Technical College as a Nurse Assistant and as a Small Animal Care Provider in 2010. In the past nine years, Sergio has had various jobs, all focused around customer service.
Eden joined United Properties in 2016. Eden graduated from Davenport University in 2015 with an Associate’s in Business Administration. She’s the Executive Assistant to the Owner of United Properties, with a focus on procedural documentation. She enjoys playing guitar, reading, and doing outdoor activities. Eden is trilingual and able to communicate in English, Spanish, and American Sign Language. 
David joined the United Properties team in 2019 as the Director of Client Relations and Business Development. In this capacity, he is responsible for leading all leasing, application underwriting, tenant relations, accounts receivable, process improvement, remote workers, and general office functionality (essentially anything outside of maintenance and service). David comes from a longstanding career at a Fortune 15 company primarily in a sales and customer service leadership role.
Matthew joined the United Properties in early 2020. He is a graduate of Lee University with a bachelor’s in Intercultural Studies and also a master’s in Discipleship and Christian Formation. Matthew serves as a project manager over the Rent Ready process. He has 20 years of construction experience and over 10 years of experience in leadership positions. He oversees a team of technicians and schedules outside vendors getting properties back to the United rent-ready standard so that they can be leased again.
Cristina joined United Properties as the Accounting and Billing Team Lead in October of 2020. She has experience as a technology professional, an English-Spanish translator, and has worked the past several years as the treasurer of her condominium.
Rick joined United Properties in 2020 as a Service Coordinator and then later transitioned to the Collections team, where his customer service shines. Rick has an extensive background in customer service and enjoys being able to resolve issues. He and his wife are raising their two kids and in his free time, Rick enjoys making his own homemade jerky.
Harriet joined United Properties as a Accounting & Billing Specialist in February of 2021. She has experience as a bookkeeper and a Property Manager for a Real Estate account. She was a working student during her college days. Harriet loves cleaning because she thinks it is therapeutic. She also loves watching series during her free time, and she’s a fur mom of one dog. Her inspiration to work every day is her family.
Diego has an extensive background in customer service and, most recently in Maintenance and
Paulina joined United in early 2021 as a Leasing Assistant. She has a background studying social work, with several years of experience in customer service. She speaks English and Spanish fluently and loves to learn. Paulina enjoys small road trips and cold, rainy weather. Her dog is her favorite thing in the world.
Jessica has a Bachelor’s Degree in Financial strategies and public accounting and is studying a masters in Blockchain and Fintech regulation. She has previous experience as a customer service representative. She speaks English and Spanish. She loves taking long walks with her three dogs, hiking and road tripping during the weekends.
Chris Good is new to the United Properties Team since June 2022 as a Business Development Manager. With years of experience in both the construction industry (Master Electrician) and the Real Estate industry (Broker), he will closely work with new and experienced investors to facilitate their real estate goals.
Melba Alvarez
Enrique Vergara (Henry)
Alyssa Conklin
Leo Lacson
Dhyana Aragon
Joksan Gomez
Soroya has been with United Properties since March 2025. Her problem-solving, time management, and communication skills help her shine when working collaboratively with tenants and prospects. She is currently pursuing a degree in Cyber Security at Davenport University. Thanks to her tech-savviness, she excels at navigating and troubleshooting common technology and software issues.
Marlon Joined United Properties in 2025 as a service coordinator. He arrived with solid experience in customer service, property management, and marketing. If you need assistance with either a new or a previous situation, he will be more than glad to help you. Depending on the season, he likes spending time outdoors, going hiking, or simply taking a stroll around town to see what’s new in the city.
Hector began his career in customer service in 2017, gaining valuable experience in client support and communication. In 2021, he transitioned into sales roles, where he developed a strong ability to drive results and build relationships. Since 2023, he has worked in maintenance, IT, and tech support, expanding his skills in troubleshooting, systems support, and hands-on problem-solving. His background combines over eight years of customer-facing roles with a growing expertise in technical support and operations.
Gar Allison joined United Properties as Director of Operations in August 2025. He brings a decade of experience, covering construction project management, supply chain, sales, marketing, and regulatory compliance. Before that, he spent five years as an Engines Sales Representative in Kansas City, MO, shortly after graduating from Davenport University in 2011 with a bachelor’s degree in business management.