Skip to Content

Best Ways to Collect Rent – And Get Paid on Time

Aurora Tenant Paying Rent on Their PhoneThe collection of rent is a major concern for the majority of rental property owners. One of the most critical considerations any property owner will make, along with how much rent to charge, is 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 numerous alternatives available for collecting rent. However, with so many individuals making use of the benefits of online payment systems these days, online rent payment is by far the most popular rental payment method. Tenants appreciate the security and simplicity of making payments online, but property owners benefit from the quicker deposit of those funds.
  • Payment App. Payment apps like Venmo, Zelle, and PayPal are other up-and-coming alternatives for rent payment. For many tenants, these services are also quite useful, as they make requesting and delivering money quick and easy.
  • ACH Debit. Finally, some Aurora 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 If the tenant is comfortable, they can supply their bank account details and have their rent withdrawn automatically each month. Given that some tenants may be uncomfortable with this arrangement, it may be beneficial to provide them with a choice of two or three alternatives. It’s also important to keep in mind that each payment method usually charges a fee to use it. Because fees vary, it’s critical to conduct your research before committing to one payment option.


Payment Methods to Avoid

On the other hand, you should discourage your tenants from using certain payment methods. Accepting rent payments in cash, for example, is a bad idea because keeping track of them is difficult. It would be difficult to show when and how much your tenant paid if a disagreement developed. Personal checks are particularly problematic since they take a long time to clear and may bounce if there is insufficient money, costing you and your renter bank fees. Money orders and cashier’s checks are typically acceptable methods of payment, particularly when collecting a security deposit. Simply pick whatever way you desire and have a method of documentation ready to generate a solid paper trail.

While one or more of these procedures may be necessary on occasion, it is generally preferable to avoid them. Methods like these are difficult to document and riddled with problems and inadequacies. You may want to include a clause in your lease documents prohibiting these payment methods to make it clear that you will not take rent payments in this manner.


Collect Through a Property Management Company

Rent collection is a time-consuming element of owning rental properties, even in the best of conditions. It doesn’t have to be that way, especially if you engage a rental property management company to help you with the process. We offer tech-enhanced operations at Real Property Management Valor Team, including online rental payments.

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!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details