Part 1 of the “Tenant Troubles?” Series
A Practical Guide for Property Owners in Billings, MT
You don’t have to be a landlord for long before you face the dreaded rent collection problem.
Maybe it starts with a short text:
“Hey, rent will be a little late this month. I had some unexpected expenses.”
Then next month, it’s a voicemail.
Then silence.
Suddenly, you’re two months behind in rent, and what used to be a promising investment is now bleeding cash.
Late rent—or worse, no rent—can wreck your monthly cash flow, disrupt your ability to pay the mortgage or maintenance costs, and turn your passive income stream into a full-time stressor.
But here's the truth: rent collection doesn’t have to be awkward, exhausting, or emotional.
When done right, it can be streamlined, professional, and automatic.
Let’s talk about how to protect your rental income without feeling like the “bad guy”—and how property managers like us at Premier make it all happen, stress-free.
Why Rent Collection Is the Lifeline of Your Rental Business
Owning a rental property is a business—whether you have one unit or twenty. And just like any business, your income has to be reliable for the operation to work.
At its core, rent is what covers your mortgage, your property taxes, your insurance, your maintenance costs, and (hopefully) your profit.
But here’s the part many first-time landlords underestimate:
Even one missed rent payment can unravel your entire financial plan.
Let’s say your rental brings in $1,400/month. That income is allocated to:
$1,000 for the mortgage
$150 for property taxes
$75 for insurance
$75 for long-term maintenance reserves
$100 profit (if you’re lucky)
Now imagine your tenant is late—by a few weeks, or worse, a full month. You’re suddenly covering that $1,400 gap out of your own pocket.
And if you're managing multiple units, this impact multiplies fast.
The Real Numbers: Missed Rent Happens More Than You Think
According to a study by TransUnion, nearly 25% of independent landlords reported at least one missed rent payment over a 12-month period.
Other studies from the Urban Institute and Avail show that:
Small landlords are less likely to recover unpaid rent than large institutional landlords
Over 30% of tenants who fall behind on rent stay behind for 2+ months
Landlords who delay rent enforcement often see a 70% decrease in eventual payment
This isn’t a rare exception. It’s a recurring risk.
The Emotional Toll You Didn’t Expect
It’s not just about the money—it’s about the stress.
If you’ve ever had to:
Send multiple payment reminders
Get ghosted after the 5th text
Worry about covering your own bills
Debate whether to serve a notice or wait it out
Feel guilty for “being too harsh”
…you know that rent issues become personal, fast.
Landlords often carry the weight of empathy. You might know your tenant is going through a hard time. You might genuinely want to give them grace. But when kindness starts costing you hundreds—or thousands—of dollars, you’re no longer just a landlord. You’re a lender, a bill collector, and sometimes, an unwilling therapist.
And it can wear you down.
Why “Wait and See” is the Worst Strategy
We’ve seen it time and time again: an owner who starts out trying to “be nice,” hoping things will resolve on their own.
Unfortunately, this usually leads to:
Accumulated back rent that the tenant can’t catch up on
Emotional tension that damages the landlord-tenant relationship
Delayed eviction timelines that cost more in the long run
Missed opportunities to re-rent to someone reliable
By the time a property owner reaches out for help, they're often 2–3 months behind, and the stress has taken over.
Shift the Approach: Systemize It
The solution? Take you out of the equation.
At Premier Property Management, we use a systematic, emotion-free approach to rent collection that prioritizes consistency and clarity—because that’s what gets results.
When tenants know what’s expected, see consistent enforcement, and can pay easily online, they’re far more likely to stay current. And you, as the owner, get to be the investor—not the enforcer.
Headache #1: The “I’ll Pay You Next Friday” Routine
Tenants may be great people. But life happens—job loss, unexpected bills, or simple forgetfulness.
If your lease isn’t airtight and your process isn’t automated, you'll quickly find yourself on the receiving end of every excuse under the sun:
“Can I pay half now, and the rest later?”
“I started a new job—just give me a couple weeks.”
“My roommate bailed and I’m figuring things out.”
Without structure, it’s easy to slide into landlord guilt—and that’s where profitability suffers.
Solution 1: Set Clear Expectations from Day One
A solid lease is your first defense.
Make sure your lease clearly outlines:
Due date and grace period (if any)
Late fees and when they’re applied
Preferred payment method (ideally online)
Consequences of non-payment (including legal steps)
Better yet—talk about rent expectations during the lease signing.
We’ve found that tenants are far more likely to pay on time when they know:
There’s a system in place
It’s not personal—it’s business
You’re consistent across the board
Clarity = compliance.
Solution 2: Screen for Financial Stability
This part’s often skipped by DIY landlords.
But your rent problems almost always start with who you place.
At Premier, we go beyond basic credit scores. We:
Verify income (2.5–3x rent minimum)
Look for consistent employment history
Check payment patterns on prior rentals (not just evictions)
Review past landlord references for red flags
This upfront work reduces the chance of late payments by over 70%.
Pro tip: Don’t rely on just “they seemed nice.” Professional screening tools + gut check = your best bet.
Solution 3: Go Digital or Go Home
Want to stop chasing checks?
Set up a system that:
Sends rent reminders automatically
Collects payments online
Notifies tenants of late fees
Tracks all payment history digitally
Platforms like AppFolio (which we use) make this seamless. Tenants get text or email reminders and can pay from their phone in seconds.
Online payments reduce late rent by up to 40%, especially with Gen Z and Millennial tenants, who expect digital convenience.
Gone are the days of “I mailed it last week.”
Solution 4: Enforce Late Fees—Every Time
Here’s where many owners flinch.
You don’t want to seem heartless. But when you don’t enforce late fees consistently, you send the message that late payments are okay.
Even just $50 can create urgency—and a pattern of respect.
At Premier, we let our systems (not emotions) handle this:
Automated reminders
Automatic late fee posting
No emotional back-and-forth
That way, tenants don’t take it personally—and neither do you.
The Owner Who “Didn’t Want to Be Mean”
A few months ago, we took over management for a property owner named Mike.
He had a lovely 3-bed rental in the Heights, but his tenant hadn’t paid rent in 3 months.
Mike had been texting reminders, listening to excuses, even dropping by with gentle nudges. He was frustrated—but didn’t want to “ruin the relationship.”
By the time he called us, he was behind on his mortgage.
We stepped in, took over communication, sent a formal demand, and got payment within 10 days. The tenant was actually relieved to deal with a third party. Mike got paid—and never had to play “bad cop” again.
Bonus Headache: What If They Still Don’t Pay?
Sometimes, even with the best systems, things go sideways.
That’s why we always:
Keep documentation of all communication and payments
Send formal notices quickly and legally
Follow Montana Landlord-Tenant law to the letter
Start the legal process when needed—with full owner transparency
Our goal is to avoid eviction when possible—but protect your rights when needed.
And we’ve found that 90% of tenants resolve payment issues when they know we have a process (and mean business).
Don’t Wait Until It’s Too Late
Rent problems rarely fix themselves.
In fact, the longer you wait to act, the worse it usually gets. The National Apartment Association reports that landlords who wait more than 30 days to enforce rent policies are 70% more likely to experience total non-payment.
If you're seeing any of these signs:
Constant late payments
Tenants ghosting your messages
Rent that never arrives on time
Awkward money convos
…it’s time to upgrade your rent collection process.
What We Do Differently at Premier
We believe that rental income should feel reliable. And that you should never be in the position of chasing money.
Here’s what our owners love most about our process:
Automated rent reminders through AppFolio
24/7 tenant access to online payments
Consistent late fee enforcement
Quick Law Enforcement with tenants
Full transparency via the owner portal
We also track rent trends across Billings and advise owners when market conditions call for adjustments—so you’re not leaving money on the table.
Bottom Line: Get Paid—Without the Headache
Late rent doesn’t have to be your normal.
With clear expectations, smart systems, and a strong team in your corner, you can enjoy the kind of rental income you originally signed up for: predictable, passive, and profitable.
Let us handle the headaches—so you can focus on growing your portfolio, not managing excuses.
Let’s Collect Rent Like Clockwork
“We collect rent like clockwork using automated systems, enforce clear lease terms, and shield owners from awkward money convos. Let us handle the hard parts so you get paid—on time, every time.”
Ready for rent reliability?
Contact Premier Property Management Today and let’s make your rental income stress-free.