Developing a dependable rent collection plan is imperative for rental property owners. In addition to setting the right rental price, managing rent payments stands as a key decision for property owners.
By setting up an effective rent collection process and getting ready in advance, you can persuade your tenants to make their payments on time. Let’s examine the most effective rent collection techniques from tenants and identify which strategies to avoid.
Best Methods for Direct Rent Payment
- Online. At present, there exists a multitude of methods to collect rent from tenants. Yet, with online payment systems becoming more popular, online rent payment stands out as the favored rental payment approach. Offering tenants convenience and security for online payments, this method also assures timely payment receipt for property owners. Online rent payment is now recognized as a dependable and handy choice for both tenants and property owners.
- Payment App. A fresh and modern method for paying rent involves the use of platforms like Venmo, Zelle, and PayPal. The convenience and user-friendliness of these services have made them highly popular among tenants and landlords. Tenants enjoy the quickness in requesting and sending money, streamlining the rent payment process to be efficient and straightforward.
- ACH Debit. Innovative methods to ensure rent is received on time are being adopted by property managers. ACH debit stands as one example of these methods. This method permits tenants to supply their bank account info for rent to be automatically withdrawn each month. However, this arrangement may not appeal to all tenants, so it’s essential to offer a few different payment methods as alternatives. Additionally, it’s important to note that each payment method typically incurs usage fees, which can differ significantly. Consequently, it’s imperative to thoroughly research before deciding on a payment method.
Payment Methods to Avoid
You ought to nudge your tenants towards designated payment methods for their rent. It’s advisable to steer clear of cash payments due to their record-keeping difficulties. Disagreements could make it hard to confirm the payment details from your tenant. Consequently, it’s best to choose payment methods that provide a clear and easily accessible record.
Personal checks might not be ideal due to their lengthy clearance time and potential to bounce, incurring bank fees for both you and your tenant. Under these circumstances, money orders and cashier’s checks may be preferable, particularly for security deposit collection. It’s vital to explicitly designate your chosen payment method and prepare a documentation system to forge a strong paper trail, helping to eliminate future disputes or confusion.
There might be instances requiring the adoption of these suboptimal payment methods, yet it’s wise to keep away from them. Payment methods like these are typically difficult to record and are beset with challenges. Prohibiting these payment methods in your lease agreements might be beneficial to make clear that these are not acceptable means of rent payment.
Collect Through a Property Management Company
While rental properties offer a profitable venture, the process of collecting rent can prove to be laborious and time-intensive in any situation. However, for those aiming to streamline the process, enlisting the services of a rental property management company could provide the solution. Through their specialized knowledge and seasoned experience, a credible property management company can competently take charge of the rent collection process, enabling you to dedicate your attention to other important aspects of property management.
Renting is made easy with Real Property Management Lakeview! We provide online rent payment as part of our technologically advanced property management services. Contact us online or call 940-323-0505 today to learn more about our quality services in Colony and nearby!
Originally Published April 1, 2022
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