A relevant concern of most rental property owners is collecting the rent. Including how much rent you should charge, and resolving how to manage it is one of the most important decisions any property owner will make. Having really good rent collection methods organized and accessible ahead of time is the best means to encourage on-time rent payments! Let’s see a few of the effective ways to collect the rent from tenants and a few methods that are better to avoid.
Best Methods for Direct Rent Payment
- Online. When it comes to collecting the rent, there are several selections. But certainly, many people are enjoying getting access to the convenience of online payment systems these days, which is – by far – the most in-demand rental payment method. Tenants love the security and convenience of making payments online, and property owners can get those payments deposited quickly.
- Payment App. Another up-and-coming method for rent payment is payment apps like Venmo, Zelle, and PayPal. These services are additionally very good for numerous tenants and can make requesting and sending money immediate and uncomplicated.
- ACH Debit. At long last, most of the Colony property managers are now opting for ACH debit for their tenants, which can definitely be another effective way to be sure rent payments arrive promptly. If the tenant is comfortable doing so, they can provide their bank account information and have their rent automatically deducted each month. Certain tenants may not be comfortable with these provisions, so it may be valuable to grant them a choice between two or three methods. It’s moreover essential to note that each payment method usually charges fees to use them. Fees vary, so it’s important to do your homework just before picking one payment method.
Payment Methods to Avoid
However, there are certain payment methods that you should stop your tenants from using. As an illustration, you should refrain from collecting rent payments made in cash since creating a paper trail is very toilsome. If a dispute arose, it would be difficult to prove when and how much your tenant actually paid. Personal checks are likewise complicated for the reason that they take a long time to clear and can bounce if there are insufficient funds, resulting in bank fees for you and your tenant. Money orders and cashier’s checks are, in many cases, great specifically when collecting a security deposit. Just make certain to specify which method you prefer and have a documentation method ready to create a solid paper trail.
Conceding that you may have to, every so often, put to use one or more of these methods, it is mostly good to avoid them. These methods are complicated to document and brimming with problems. You may even entail banning these payment methods in your lease documents to specify that you won’t accept rent payments in these ways.
Collect Through a Property Management Company
Even under the best circumstances, collecting rent can be a time-consuming part of owning rental properties. However, it doesn’t really have to be that way, particularly if you work with a rental property management company to manage the work for you. At Real Property Management Lakeview, we offer tech-enhanced processes that include online rental payments.
Appointing 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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