It’s vital for owners of rental properties to establish a reliable rent collection strategy. Apart from setting an appropriate rental fee, overseeing rent payments is essential 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. Currently, various strategies for collecting rent from tenants are available. As online payment systems become more prevalent, online rent payment emerges as the top choice for rental payment. 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. Utilizing apps such as Venmo, Zelle, and PayPal offers a novel and modern approach to rent payment. Due to their ease of use and convenience, these platforms have gained significant popularity among both tenants and landlords. With the capacity to promptly request and send money, tenants find that paying rent becomes quick, efficient, and trouble-free.
- ACH Debit. Innovative methods to ensure rent is received on time are being adopted by property managers. ACH debit is one such innovative method. Through this method, tenants can share their bank account details to enable automatic rent deductions monthly. Yet, given that this arrangement might be unsuitable for some tenants, providing a choice from two or three payment methods is key. Additionally, it’s important to note that each payment method typically incurs usage fees, which can differ significantly. Thus, conducting thorough research before selecting a payment method is imperative.
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. If a dispute occurs, proving the exact amount and payment date from your tenant could be difficult. Thus, adhering to 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. Therefore, money orders and cashier’s checks prove to be superior options, notably for gathering security deposits. Clearly indicating your preferred payment method and maintaining a reliable documentation method are crucial for establishing a solid paper trail and avoiding future disagreements or confusion.
Situations may necessitate employing these less preferable payment methods at times, but it’s recommended to avoid them. These payment methods usually involve complicated documentation and are prone to complications. 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
While rental properties offer a profitable venture, the process of collecting rent can prove to be laborious and time-intensive in any situation. Nevertheless, if simplifying the process is your goal, engaging a rental property management company might be the answer. 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 Pinnacle Peak! As part of our tech-savvy property management services, we include the capability for online rent payment. Contact us online or call 480-716-5700 today to learn more about our quality services in Phoenix and nearby!
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.
