Rent collection is a major worry for most rental property owners. One of the most essential decisions a property owner will make, along with determining how much rent to charge, is determining how to manage it. The most effective way to encourage on-time rent payments is to have a good rent collection method in place and ready to go ahead of time. Examine some of the most effective strategies for collecting rent from tenants, as well as a few that should be avoided at all costs.
Best Methods for Direct Rent Payment
- Many choices are available when it comes to collecting the rental money. The most popular rental payment option is, by far, online rent payment, which is a result of a large number of people who are taking advantage of the conveniences offered by online payment systems these days. Tenants prefer the security and convenience of making payments online, and property owners benefit from the faster deposit of such funds.
- Payment App. Payment apps like Venmo, Zelle, and PayPal are other new ways to pay rent. These services are also quite useful for many tenants, as they allow them to request and send money in a quick and simple manner.
- ACH Debit. Finally, some Eagle property managers are now allowing their renters to set up ACH debit, which is another wonderful approach to ensure rent payments are received on time. If the tenant is satisfied with it, they can supply their bank account details and have their rent withdrawn automatically every month. Given that certain tenants may be uncomfortable with this arrangement, it may be beneficial to provide them with a choice of two or three methods. It’s also worth noting that each payment option has a cost associated with it. Before settling on a certain payment option, it’s prudent to shop about and compare the costs associated with each.
Payment Methods to Avoid
On the other hand, there are a few payment methods that you should avoid encouraging tenants to use. For instance, you should avoid receiving rent payments in cash because maintaining a paper trail is quite difficult. In the event of a dispute, establishing when and how much your tenant actually paid would be challenging. Personal checks are particularly problematic since they take a long time to clear and can fail if funds are insufficient, costing you and your tenant money in bank fees. When collecting a security deposit, money orders and cashier’s checks are frequently acceptable. Just make sure to state the approach you want and have a method for documentation available to generate a good paper trail.
While one or more of these approaches may be necessary on occasion, it is normally advisable to avoid them. These methods are difficult to document and are riddled with flaws. You might even wish 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
Even in the best-case scenario, collecting rent may be a time-consuming aspect of property ownership. It doesn’t have to be that way, especially if you engage a rental property management company to help you out. We offer tech-enhanced operations at Real Property Management Boise, such as 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.
