Developing a dependable rent collection plan is imperative for rental property owners. Apart from setting an appropriate rental fee, overseeing rent payments is essential for property owners.
With an effective rent collection strategy and prior preparation, you can prompt your tenants to submit their payments promptly. Let’s discover the top methods for collecting rent from tenants and highlight the strategies to avoid.
Best Methods for Direct Rent Payment
- Online. Today, a range of options is available for rent collection from tenants. Yet, with online payment systems becoming more popular, online rent payment stands out as the favored rental payment approach. Offering tenants convenience and security for online payments, this method also assures timely payment receipt for property owners. The online rent payment option has established itself as a credible and convenient method for both tenants and property owners.
- Payment App. A fresh and modern method for paying rent involves the use of platforms like Venmo, Zelle, and PayPal. Tenants and landlords alike have widely embraced these services for their ease of use and convenience. Tenants enjoy the quickness in requesting and sending money, streamlining the rent payment process to be efficient and straightforward.
- ACH Debit. Property managers are now introducing new tactics to secure prompt rent payments. ACH debit is one method among these. By using this method, tenants have the option to give their banking information for the automatic deduction of rent monthly. However, since some tenants might find this arrangement unsettling, it’s vital to offer a choice of two or three payment methods. Furthermore, it’s significant to acknowledge that each payment method usually involves charges, which can substantially vary. 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. Best practice is to eschew cash payments to simplify tracking. Disagreements could make it hard to confirm the payment details from your tenant. Thus, adhering to payment methods that provide a clear and easily accessible record.
Using personal checks can be less than optimal because of the extended time they take to clear and the risk of bouncing, which can lead to bank charges for you and the tenant. In scenarios like these, money orders and cashier’s checks are more advantageous, especially for securing security deposits. Specifying your preferred payment method clearly and ensuring a documentation process is in place for a solid paper trail is critical to preventing future disputes or misunderstandings.
While circumstances may arise necessitating the use of one or several less-than-ideal payment methods, avoiding them is recommended. Payment methods like these are typically difficult to record and are beset with challenges. It could be advantageous to disallow these payment methods in your lease contracts to affirm that rent payments via these avenues are not accepted.
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. Nonetheless, if your objective is to simplify the operation, the employment of a rental property management company could be the ideal resolution. Through their specialized knowledge and seasoned experience, a credible property management company can competently take charge of the rent collection process, enabling you to dedicate your attention to other important aspects of property management.
Renting is made easy with Real Property Management 360! We provide online rent payment as part of our technologically advanced property management services. Contact us online or call 817-502-3588 today to learn more about our quality services in Arlington and nearby!
Originally Published April 1, 2022
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