A solid rent collection strategy is fundamental for anyone owning rental property. Managing rent payments, alongside determining a fitting rental rate, is a crucial decision for property owners.
With an effective rent collection strategy and prior preparation, you can prompt your tenants to submit their payments promptly. Let’s delve into the best methods for rent collection from tenants and the strategies to steer clear of.
Best Methods for Direct Rent Payment
- Online. In the current era, multiple methods exist for collecting rent from tenants. As online payment systems become more prevalent, online rent payment emerges as the top choice for rental payment. By this method, tenants enjoy the comfort and protection of making payments online, and it guarantees that property owners get those payments punctually. Online rent payment has become known as a solid and convenient choice for tenants and property owners.
- Payment App. Apps like Venmo, Zelle, and PayPal introduce a modernized way to handle rent payments. The user-friendly nature and convenience of these services have made them favorites among both tenants and landlords. The ability for tenants to swiftly request and transfer funds makes rent payments fast, efficient, and free from hassle.
- ACH Debit. Property managers are currently utilizing novel techniques to ensure rent is paid promptly. One of these methods includes ACH debit. This approach enables tenants to offer their banking information, leading to their rent being deducted automatically each month. Some tenants may feel uneasy with this setup, thereby necessitating the availability of two or three payment options. Furthermore, it’s significant to acknowledge that each payment method usually involves charges, which can substantially vary. Thus, conducting thorough research before selecting a payment method is imperative.
Payment Methods to Avoid
It is wise to guide your tenants towards particular payment methods for rent. Avoiding cash payments is preferable as they complicate record-keeping. If a dispute occurs, proving the exact amount and payment date from your tenant could be difficult. For this reason, preferring payment methods that provide a clear and easily accessible record.
The use of personal checks is not advised, given their protracted clearance times and the possibility of bouncing, which can result in bank fees for both parties. In scenarios like these, money orders and cashier’s checks are more advantageous, especially for securing security deposits. Clearly articulating your payment preference and implementing a documentation strategy is essential for creating a strong paper trail, thereby averting future disputes or perplexities.
Situations may necessitate employing these less preferable payment methods at times, but it’s recommended to avoid them. These approaches are generally complex to log and riddled with issues. Excluding these payment methods from your lease agreements may be prudent to explicitly indicate that rent payments through these channels are not accepted.
Collect Through a Property Management Company
Rental properties can yield significant returns, yet the task of rent collection is often arduous and lengthy, regardless of circumstances. Nevertheless, if simplifying the process is your goal, engaging a rental property management company might be the answer. With the expertise and experience they bring, a well-regarded property management company can seamlessly manage the rent collection process, allowing you to focus on the other critical areas of property ownership.
Renting is made easy with Real Property Management Brevard! As part of our tech-savvy property management services, we include the capability for online rent payment. Contact us online or call 321-610-8022 today to learn more about our quality services in Palm Bay and nearby!
Originally Published April 1, 2022
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