Best Ways to Collect Rent – And Get Paid on Time

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.

Implementing an efficient rent collection system and preparing beforehand can motivate your tenants to pay on time. Let’s investigate the optimal approaches to collecting rent from tenants and pinpoint strategies to avoid.

Best Methods for Direct Rent Payment

• Online. In the current era, multiple methods exist for collecting rent from tenants. Yet, with online payment systems becoming more popular, online rent payment stands out as the favored rental payment approach. This method provides tenants with the convenience and safety of online payments, while ensuring property owners receive payments promptly. Online rent payment is now recognized as a dependable and handy choice for both tenants and property owners.
• Payment App. Rent payment has been modernized with the use of applications like Venmo, Zelle, and PayPal. The convenience and user-friendliness of these services have made them highly popular among tenants and landlords. The ability for tenants to swiftly request and transfer funds makes rent payments fast, efficient, and free from hassle.
• ACH Debit. New approaches are being implemented by property managers to guarantee timely payment of rent. ACH debit stands as one example of these methods. This method allows tenants to submit their bank details for automatic rent deduction every month. However, this arrangement may not appeal to all tenants, so it’s essential to offer a few different payment methods as alternatives. Moreover, it’s pertinent to mention that usage fees are typically charged by each payment method, and the amounts can vary extensively. Therefore, it’s important to conduct careful research before opting for 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. Should a disagreement arise, verifying the payment date and amount from your tenant could be problematic. Consequently, it’s best to choose payment methods that provide a clear and easily accessible record.

Personal checks could be a poor choice as their clearance can be slow and they may bounce, causing bank fees for both the landlord and tenant. For these reasons, opting for money orders and cashier’s checks can be more suitable, especially in the context of security deposit collections. 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

Investing in rental properties can be financially rewarding, however, rent collection can become a tiresome and prolonged process even in optimal conditions. Yet, should you wish to make the process easier, contracting with a rental property management company could be the solution you seek. A reputable property management company, with its wealth of expertise and experience, can effectively oversee the rent collection process, thus liberating you to attend to other vital facets of owning property.

Renting is made easy with Real Property Management Alliances! We provide online rent payment as part of our technologically advanced property management services. Contact us online or call 407-378-7611 today to learn more about our quality services in Tavares and nearby!