Whether you own Residential or Commercial property it does not matter. Getting the rent on time from your tenant(s) is the most important aspect of property investment management. This is the first post on this crucial subject.

It all starts in the drafting of a lease. Use a property lawyer. Do not use a template bought in a book store for 5. Do not re-write an old lease. Spend the extra money on a property lawyer.

Ensure any lease that you grant spells out clearly when the rent is due, how it is to be paid and what the penalties are for late and non payment. In a commercial lease in the the rents are normally due in advance on the usual english quarter days (25 March, 24 June, 29 September and 25 December) although there is currently pressure from various tenant groups on landlords to accept monthly in advance payments. Residential tenants usually pay monthly under the terms of their lease, ensure that the date is written into the lease.

Get your lawyer to draft a clause in the lease which requires your tenant to set up a Direct Debit facility to pay you. This prevents missing cheques and a whole host of other tenant excuses for not paying on time. Do you really want your tenant turning up to your office with a bag full of cash at 5pm or even worse a bag full of coins!

Set a high level of penalty interest (LPI) for late payment, 4% above base is fine. If during lease negotiations the prospective tenant questions this level of penalty interest proposed in the lease ask them if they intend paying the rent late every time it is due! If the answer is yes then you may want to consider whether you want them as a tenant or whether they will likely end up costing you money in bad debt write offs.

The lease should state that the "rent is to be paid on the due date whether formally demanded or not" and detail your remedies for non payment. These include (among many other things) on a commercial property, forfeiture and distress.

Get a rent deposit for residential tenants and possibly a third party to guarantee the lease.

Enforce the agreed lease terms from day one. Be consistent, hard but fair. Remember that the lease is a contract, the terms of which are freely entered into by both parties. Your tenant has signed this contract to say he/she agrees to pay the rent on the dates specified within the lease. Leave your emotions at home and remember this is business. Your rent collection performance has a direct influence on the success of your investment and your collection statistics are a direct reflection on how well you are managing your property investment.