The main reason that landlords have skips, evictions, and late payments with tenants is due to a poorly kept budget. It’s therefore in your best interest as the landlord to encourage tenants to maintain safe budgetary practices. You can communicate this through email or through an educational sheet that you post on their door or hand to them when they sign the lease. By educating your tenants on keeping a sound budget, you can help yourself reduce the likelihood of skips, evictions, and late payments. The following are some suggestions that you can make to your community on keeping a budget.
1. Reducing spending on restaurants and drinks
A lot of money can be wasted on restaurants and drinks. It’s easy to get the same food and drink that you would get at a restaurant at a grocery store. It can mean the difference of hundreds of dollars saved. Two meals at a nice restaurant can pay for a full weeks-worth of groceries.
2. Moderation in your budget
You need to have a realistic budget that you can stick to for the long term. If the budget is too strict, then you will inevitably “fail” at your budget and you may forget the whole thing. Or if your budget is too loose it barely serves you any purpose and you’re still in debt. This means it’s ok to have fun every once a while in moderation. If you get depressed because of the strict budget you have kept yourself to, you will fail.
3. Have a goal in mind
Having a financial goal such as purchasing a new car or going to school can help you to get your budget back in order. You can figure out how much that goal will cost and then divide that over a series of months. If you’re looking to save as well then you’ll know to save just a little more than that each month. Posting that goal on the bathroom mirror can be a constant motivator to save whenever you can.
4. Withdraw the Same Amount 1 Day of Each Week
This isn't the best solution for everyone, but if you stick to it, you can keep a sound budget. After all, you have the most immediate control over your leisure budget. By limiting the amount of money you pull out each week and setting that to a scheduled day you can be sure not to overspend for that week. The problem with this strategy is that it does not account for emergency spending for your home, car, or health. Also if you spend a lot with a credit card, this is not the best strategy for you.
5. Connect them with a budget calculator
The most important thing for you to have for your budget is a plan of action. A budget calculator helps you to see clearly how much money you’re spending in each aspect of your life. It also clearly shows how much money you will save at the end of the year. This is fundamental to developing a realistic budget.