Back in the olden days landlords use to send out invoices to tenants each and every month to let them know that their rent was due on the first. These invoices were very similar to the bills you and I would receive for our phone, mortgage, electricity or cable bills. The top part of the invoice would include the amount that was due and the date that it was due. If payment was made after the due date, the invoice would show the amount that you would have to pay including the late fee. The bottom part of the invoice would have a portion that could be ripped off as the payment coupon. The payment coupon could be included in an envelope with your payment.

This method of collecting rents was very tedious for the landlord. They had to set aside one day each month in which to write the invoices, print them out and then stuff them one at a time into an envelope. Then you had to drive to the post office to send the letters to the tenants. With the increase in the cost of a single postage stamp, this process has become more expense for the landlords. The landlord goes through this process each and every month that they own a rental investment property.

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With the increase in the usage of smart phones with BlackBerry, PDAs and iPhone, many people are using the capability available in their phones. Almost everyone has the capability of sending text messages on their cell phones. If my mother is sending messages, I bet your tenants that are half her age definitely know how to send messages. Instead of sending out invoices each and every month you can replace this laborious process by using text messaging.

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When you send a message, it is possible to send it to more than one person. This is perfect because it means that if you have 100 rental properties then you do not have to send out 100 text messages. Instead you write one text message and send it to 100 people. This allows you to easily send one text message toward the end of the month to remind your tenants that rent is due on the first. You can even send follow up messages to let them know when the rent is past due.

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All cell phone companies allow you to send a text message through your email program like Microsoft Outlook. You just need to know the format for each of the carriers. You can program the text message email address of all your tenants into a group in Microsoft Outlook. Then you just send one email message to this group every month to remind them that their rent is due.

Text message can replace the labor intensive process of sending out monthly invoices. Plus sending a text message is free!

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Filed under: Landlord Tip • Landlording • Property Management • Real Estate Investing

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