A primary concern of most rental property owners is collecting the rent. Aside from how much rent you should charge, identifying how to manage it is one of the most important decisions any property owner will make. Having a strong rent collection method system and being ready in advance is the greatest strategy to encourage on-time rent payments! Let’s explore some of the ideal methods to collect the rent from tenants and a few methods that are better to avoid.
Best Methods for Direct Rent Payment
- Online. When it comes to collecting the rent, there are several alternatives. However, with so many people tapping into the affordances of online payment systems these days, the most in-demand rental payment method is – by far – online rent payment. Tenants like the security and convenience of making payments online, and property owners can get those payments deposited easily and quickly.
- Payment App. Another up-and-coming method for rent payment is payment apps like Venmo, Zelle, and PayPal. These programs are also highly useful for several tenants and can make requesting and sending money fast and uncomplicated.
- ACH Debit. Lastly, some Arlington property managers are already establishing ACH debit for their tenants, which can be another best way to guarantee rent payments make it on time. If the tenant is comfortable doing so, they can provide their bank account information and have their rent automatically deducted each month. Other tenants may not be happy with the deal; therefore, it may be beneficial to offer them a choice between two or three methods. It’s also vital to remember that each payment method usually charges fees to use them. Fees vary, so it’s important to do your homework before selecting one payment method.
Payment Methods to Avoid
On the other side, there are some payment methods that you must prevent your tenants from using. For instance, you must avoid taking rent payments made in cash as creating a paper trail is quite hard. If a dispute arose, it would be difficult to prove when and how much your tenant actually paid. Personal checks are also troublesome because they take a long time to clear and can bounce if there are insufficient funds, resulting in bank fees for you and your tenant. Money orders and cashier’s checks are normally allowed, particularly when collecting a security deposit. Just make certain to specify which method you prefer and have a documentation method ready to create a solid paper trail.
While you may sometimes need to utilize one or more of these methods, it is typically advisable to prevent them. These methods are difficult to document and loaded with problems. You may even wish to restrict these payment methods in your lease documents to explain that you won’t accept rent payments with these methods.
Collect Through a Property Management Company
Even under the greatest circumstances, collecting rent can be a time-consuming part of owning rental properties. However, it doesn’t need to be that way, particularly if you employ a rental property management company to manage the tasks for you. At Real Property Management 360, we offer tech-enhanced processes that include online rental payments.
Employing 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.