It’s vital for owners of rental properties to establish a reliable rent collection strategy. Besides choosing a suitable rental rate, the management of rent payments is a critical choice for property owners.
By setting up an effective rent collection process and getting ready in advance, you can persuade your tenants to make their payments on time. Let’s discover the top methods for collecting rent from tenants and highlight the strategies to avoid.
Best Methods for Direct Rent Payment
- Online. At present, there exists a multitude of methods to collect rent from tenants. Yet, with online payment systems becoming more popular, online rent payment stands out as the favored rental payment approach. This technique allows tenants to benefit from easy and secure online payments and assures property owners of timely payment reception. The online rent payment system has proven to be a reliable and convenient alternative for tenants and landlords alike.
- Payment App. Rent payment has been modernized with the use of applications like Venmo, Zelle, and PayPal. Tenants and landlords alike have widely embraced these services for their ease of use and convenience. The facility for tenants to rapidly request and dispatch money facilitates a speedy, efficient, and smooth rent payment experience.
- ACH Debit. Property managers have started to embrace innovative strategies for securing rent payments on time. ACH debit represents one of these new approaches. This method allows tenants to submit their bank details for automatic rent deduction every month. Nonetheless, this setup may not sit well with some tenants, making it crucial to provide a selection of two or three payment options. Furthermore, it’s significant to acknowledge that each payment method usually involves charges, which can substantially vary. Therefore, it is essential to carefully research before settling on a payment method.
Payment Methods to Avoid
It’s advisable to prompt your tenants to adhere to certain payment methods for rent. Avoiding cash payments is preferable as they complicate record-keeping. Should a disagreement arise, verifying the payment date and amount from your tenant could be problematic. 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. For these reasons, opting for money orders and cashier’s checks can be more suitable, especially in the context of security deposit collections. Clearly articulating your payment preference and implementing a documentation strategy is essential for creating a strong paper trail, thereby averting future disputes or perplexities.
Even though you might have to resort to these less desirable payment methods under certain conditions, it’s best to avoid them. These payment methods usually involve complicated documentation and are prone to complications. Banning these payment methods in lease agreements could serve to unequivocally state that such means of rent payment are not permitted.
Collect Through a Property Management Company
Rental properties can be a valuable investment, though the rent collection process may be cumbersome and lengthy, irrespective of the circumstances. Yet, should you wish to make the process easier, contracting with a rental property management company could be the solution you seek. Utilizing their proficiency and experience, an esteemed property management company can skillfully navigate the rent collection process, thereby freeing you to focus on other imperative components of property ownership.
Renting is made easy with Real Property Management Boise! We provide online rent payment as part of our technologically advanced property management services. Contact us online or call 208-494-1800 today to learn more about our quality services in Eagle and nearby!
Originally Published April 1, 2022
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