It’s vital for owners of rental properties to establish a reliable rent collection strategy. Apart from setting an appropriate rental fee, overseeing rent payments is essential for property owners.
Implementing an efficient rent collection system and preparing beforehand can motivate your tenants to pay on time. We’ll look into the best practices for gathering rent from tenants and outline the tactics to avoid.
Best Methods for Direct Rent Payment
- Online. Currently, various strategies for collecting rent from tenants are available. As online payment systems become more prevalent, online rent payment emerges as the top choice for rental payment. This method provides tenants with the convenience and safety of online payments, while ensuring property owners receive payments promptly. Online rent payment has risen as a trustworthy and easy solution for both tenants and property owners.
- Payment App. The use of apps like Venmo, Zelle, and PayPal represents a contemporary method for rent payment. For their convenience and simple usability, these services have achieved great popularity among tenants and landlords. Tenants have the advantage of quickly requesting and sending money, which simplifies the process of paying rent, making it speedy and effortless.
- ACH Debit. Property managers have started to embrace innovative strategies for securing rent payments on time. ACH debit is one such innovative method. This method allows tenants to submit their bank details for automatic rent deduction every month. Yet, given that this arrangement might be unsuitable for some tenants, providing a choice from two or three payment methods is key. Moreover, it’s pertinent to mention that usage fees are typically charged by each payment method, and the amounts can vary extensively. Hence, doing your due diligence prior to choosing a payment method is crucial.
Payment Methods to Avoid
You ought to nudge your tenants towards designated payment methods for their rent. Avoiding cash payments is preferable as they complicate record-keeping. Disagreements could make it hard to confirm the payment details from your tenant. Hence, it’s advantageous to use 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. Under these circumstances, money orders and cashier’s checks may be preferable, particularly for security deposit collection. Clearly indicating your preferred payment method and maintaining a reliable documentation method are crucial for establishing a solid paper trail and avoiding future disagreements or confusion.
Situations may necessitate employing these less preferable payment methods at times, but it’s recommended to avoid them. These payment methods usually involve complicated documentation and are prone to complications. It could be advantageous to disallow these payment methods in your lease contracts to affirm that rent payments via these avenues are not accepted.
Collect Through a Property Management Company
The ownership of rental properties has the potential for high earnings, but the act of collecting rent can be painstaking and slow, even in the most favorable conditions. Yet, should you wish to make the process easier, contracting with a rental property management company could be the solution you seek. 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 Valor Team! As part of our tech-savvy property management services, we include the capability for online rent payment. Contact us online or call 440-534-6700 today to learn more about our quality services in Aurora and nearby!
Originally Published April 1, 2022
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