Through the adoption of an effective rent collection mechanism and early preparation, you can incentivize timely payments from your tenants. We’ll look into the best practices for gathering rent from tenants and outline the tactics to avoid.
Best Methods for Direct Rent Payment
- Online. Presently, several approaches are available for tenant rent collection. With the rising popularity of online payment systems, the preferred method for rental payment is increasingly becoming online rent payment. Offering tenants convenience and security for online payments, this method also assures timely payment receipt for property owners. Online rent payment has become known as a solid and convenient choice for tenants and property owners.
- Payment App. The use of apps like Venmo, Zelle, and PayPal represents a contemporary method for rent payment. The convenience and user-friendliness of these services have made them highly popular among 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. New approaches are being implemented by property managers to guarantee timely payment of rent. ACH debit is one such innovative method. This approach enables tenants to offer their banking information, leading to their rent being deducted automatically each month. Yet, given that this arrangement might be unsuitable for some tenants, providing a choice from two or three payment methods is key. It’s also crucial to recognize that each payment method often comes with its set of fees, which can greatly vary. Consequently, it’s imperative to thoroughly research before deciding on a payment method.
Payment Methods to Avoid
It is wise to guide your tenants towards particular payment methods for rent. It’s advisable to steer clear of cash payments due to their record-keeping difficulties. If a dispute occurs, proving the exact amount and payment date from your tenant could be difficult. Hence, it’s advantageous to use 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. Consequently, money orders and cashier’s checks become more appealing choices, especially for security deposit acquisitions. 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.
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. Forbidding these payment methods in your rental agreements could help clearly communicate that you do not accept rent payments through these mechanisms.
Collect Through a Property Management Company
The ownership of rental properties has the potential for high earnings, but the act of collecting rent can be painstaking and slow, even in the most favorable conditions. Nonetheless, if your objective is to simplify the operation, the employment of a rental property management company could be the ideal resolution. With the expertise and experience they bring, a well-regarded property management company can seamlessly manage the rent collection process, allowing you to focus on the other critical areas of property ownership.
Renting is made easy with Real Property Management Assurance! Our property management services, bolstered by technology, include the option for online rent payment. Contact us online or call 971-270-2600 today to learn more about our quality services in Hillsboro and nearby!
Originally Published April 1, 2022