Best Ways to Collect Rent – And Get Paid on Time

Owners of rental properties must prioritize creating a strong plan for rent collection. Managing rent payments, alongside determining a fitting rental rate, is a crucial decision 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 examine the most effective rent collection techniques from tenants and identify which strategies to avoid.

Best Methods for Direct Rent Payment

• Online. At present, there exists a multitude of methods to collect rent from tenants. Nonetheless, due to the growing appeal of online payment systems, online rent payment is now the most popular method for rental payments. This technique allows tenants to benefit from easy and secure online payments and assures property owners of timely payment reception. The online rent payment option has established itself as a credible and convenient method for both tenants and property owners.
• Payment App. Apps like Venmo, Zelle, and PayPal introduce a modernized way to handle rent payments. Due to their ease of use and convenience, these platforms have gained significant popularity among both tenants and landlords. The facility for tenants to rapidly request and dispatch money facilitates a speedy, efficient, and smooth rent payment experience.
• ACH Debit. Innovative methods to ensure rent is received on time are being adopted by property managers. ACH debit stands as one example of these methods. This approach enables tenants to offer their banking information, leading to their rent being deducted automatically each month. Some tenants may feel uneasy with this setup, thereby necessitating the availability of two or three payment options. Additionally, it’s important to note that each payment method typically incurs usage fees, which can differ significantly. Therefore, it’s important to conduct careful research before opting for a payment method.

Payment Methods to Avoid

Encouraging tenants to stick to specific payment methods for rent is recommended. Avoiding cash payments is preferable as they complicate record-keeping. In the event of a conflict, it could become tough to demonstrate the specifics of your tenant’s payments. Therefore, it’s wise to favor 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. In scenarios like these, money orders and cashier’s checks are more advantageous, especially for securing security deposits. Clearly articulating your payment preference and implementing a documentation strategy is essential for creating a strong paper trail, thereby averting future disputes or perplexities.

Situations may necessitate employing these less preferable payment methods at times, but it’s recommended to avoid them. These methods often present recording complexities and are associated with various issues. Excluding these payment methods from your lease agreements may be prudent to explicitly indicate that rent payments through these channels are not accepted.

Collect Through a Property Management Company

While rental properties offer a profitable venture, the process of collecting rent can prove to be laborious and time-intensive in any situation. However, for those aiming to streamline the process, enlisting the services of a rental property management company could provide the solution. Leveraging their expertise and experience, a distinguished property management company can adeptly manage the rent collection process, affording you the opportunity to concentrate on other crucial elements of property ownership.

Renting is made easy with Real Property Management Tidal! Online rent payment is a feature of our technology-enhanced property management offerings. Contact us online or call 757-206-2071 today to learn more about our quality services in Newport News and nearby!