Best Ways to Collect Rent – And Get Paid on Time

For rental property owners, having a robust rent collection plan is crucial. Apart from setting an appropriate rental fee, overseeing rent payments is essential for property owners.

Through the adoption of an effective rent collection mechanism and early preparation, you can incentivize timely payments from your tenants. Let’s delve into the best methods for rent collection from tenants and the strategies to steer clear of.

Best Methods for Direct Rent Payment

• Online. Presently, several approaches are available for tenant rent collection. As online payment systems become more prevalent, online rent payment emerges as the top choice for rental payment. This method provides tenants with the convenience and safety of online payments, while ensuring property owners receive payments promptly. Online rent payment is now recognized as a dependable and handy choice for both tenants and property owners.
• 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. Tenants have the advantage of quickly requesting and sending money, which simplifies the process of paying rent, making it speedy and effortless.
• ACH Debit. Property managers are currently utilizing novel techniques to ensure rent is paid promptly. One of these methods includes ACH debit. 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. Also, it should be noted that fees are commonly associated with each payment method, and these can widely vary. Thus, conducting thorough research before selecting a payment method is imperative.

Payment Methods to Avoid

It is wise to guide your tenants towards particular payment methods for rent. Opting out of cash payments is wise because they can muddle tracking efforts. Should a disagreement arise, verifying the payment date and amount from your tenant could be problematic. Therefore, it’s wise to favor 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. It’s vital to explicitly designate your chosen payment method and prepare a documentation system to forge a strong paper trail, helping to eliminate future disputes or confusion.

While there could be occasions that call for the use of these less optimal payment methods, it’s prudent to refrain from them. Such methods are often complex to document and come with numerous problems. 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 yield significant returns, yet the task of rent collection is often arduous and lengthy, regardless of 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 Advantage! As part of our tech-savvy property management services, we include the capability for online rent payment. Contact us online or call 248-554-1010 today to learn more about our quality services in Ferndale and nearby!