The collection of rent is a major worry for most rental property owners. One of the most significant decisions any property owner will make, along with determining how much rent to charge, is determining how to manage it. Having a good rent collection technique in place and ready to go in advance is the most effective approach to encouraging tenants to pay their rent on time. Let’s take a look at some of the most effective strategies for collecting rent from tenants, as well as a few that should be avoided.
Best Methods for Direct Rent Payment
- There are a variety of options available for collecting rent. The most popular rental payment option is, by far, online rent payment, which is a result of a large number of people who are taking advantage of the conveniences provided by online payment systems these days. Paying rent online is convenient for tenants, and it allows property owners to get their cash into their bank accounts much more quickly.
- Payment App. Payment programs such as Venmo, Zelle, and PayPal, which are becoming increasingly popular for rent payments, are another option. For many tenants, these services are also quite useful, as they make requesting and delivering money quick and easy.
- ACH Debit. Finally, some Brooksville property managers are now allowing their tenants to set up ACH debit, which can be a wonderful way to ensure rent payments are received on time. If the tenant is satisfied with it, they can supply their bank account details and have their rent withdrawn automatically every month. Some tenants may be uncomfortable with this arrangement, so giving them a choice between two or three options may be beneficial. It’s also worth noting that most payment methods have costs associated with them. Before settling on a certain payment option, it’s prudent to shop about and compare the costs associated with each.
Payment Methods to Avoid
There are a few payment methods, on the other hand, that you should discourage your tenants from utilizing. Accepting rent payments in cash, for example, is a bad idea because keeping track of them is difficult. It would be difficult to prove when and how much your tenant paid in the event of a dispute. Personal checks are also a concern because they take a long time to clear and can bounce if there are insufficient funds, costing you and your tenant money in bank fees. When collecting a security deposit, money orders and cashier’s checks are frequently acceptable. Just make sure to state the approach you want and have a method for documentation available to generate a good paper trail.
While you might need to utilize one or more of these approaches on occasion, it’s normally advisable to avoid them. In addition to being difficult to document, this approach is riddled with errors. You may even want to prohibit these payment methods in your lease paperwork to make it clear that you will not accept these forms of rent payment.
Collect Through a Property Management Company
Rent collection can be a time-consuming element of owning rental homes even in the best of conditions. It doesn’t have to be that way, especially if you engage a rental property management company to take care of everything. We offer tech-enhanced processes, such as online rental payments, at Real Property Management Connection.
Hiring a property management company is one of the best ways to keep your rent payments coming in on time, month after month. Contact us today to learn more about our quality services!
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