A vital concern of most rental property owners is collecting the rent. Besides how much rent you should charge, finding out how to manage it is one of the most important decisions any property owner will make. Having great rent collection methods arranged and prepared beforehand is an effective way to encourage on-time rent payments! Let’s check out several of the best means 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 numerous choices. However, with a lot of people making use of the affordances of online payment systems these days, the most in-demand rental payment method is – by far – online rent payment. Tenants want the security and convenience of making payments online, and property owners can get those payments deposited quicker.
- Payment App. Another up-and-coming method for rent payment is payment apps like Venmo, Zelle, and PayPal. These services are moreover very easy for most tenants and can make requesting and sending money fast and effortless.
- ACH Debit. One last note, several Shrewsbury property managers are now using ACH debit for their tenants, which may be another ideal approach to make certain rent payments come on a timely basis. If the tenant is comfortable doing so, they can provide their bank account information and have their rent automatically deducted each month. Various tenants may not be comfortable with these agreements, so it may be useful to provide them a choice between two or three methods. It’s additionally significant to note 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
But take note, there are some payment methods that you should prevent your tenants from using. For instance, you should eliminate obtaining rent payments made in cash because creating a paper trail is very complicated. If a dispute arose, it would be difficult to prove when and how much your tenant actually paid. Personal checks are furthermore troublesome due to the fact that 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 mostly okay, particularly when collecting a security deposit. Just make sure to specify which method you prefer and have a documentation method ready to create a solid paper trail.
Although you may necessitate at times to opt for one or more of these methods, it is in many cases appropriate to avoid them. These methods are toilsome to document and full of problems. You may even like to ban these payment methods in your lease documents to outline and clarify that you won’t accept rent payments in these processes.
Collect Through a Property Management Company
Even under the best circumstances, collecting rent can be a time-consuming part of owning rental properties. Although it doesn’t necessarily need to be that way, especially if you appoint a rental property management company to take charge of the procedures for you. At Real Property Management MetroWest-Worcester, 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!
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