Implementing an efficient rent collection system and preparing beforehand can motivate your tenants to pay on time. Let’s discover the top methods for collecting rent from tenants and highlight the strategies to avoid.
Best Methods for Direct Rent Payment
- Online. Currently, various strategies for collecting rent from tenants are available. With the rising popularity of online payment systems, the preferred method for rental payment is increasingly becoming online rent 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. For their convenience and simple usability, these services have achieved great popularity among 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. Property managers are now introducing new tactics to secure prompt rent payments. ACH debit is one such innovative method. This method allows tenants to submit their bank details for automatic rent deduction every month. Yet, given that this arrangement might be unsuitable for some tenants, providing a choice from two or three payment methods is key. Also, it should be noted that fees are commonly associated with each payment method, and these can widely vary. Therefore, it is essential to carefully research before settling on a payment method.
Payment Methods to Avoid
Recommending specific payment methods to your tenants for rent payments is prudent. Refraining from accepting cash payments is beneficial, as they can hinder proper tracking. In the event of a conflict, it could become tough to demonstrate the specifics of your tenant’s payments. Therefore, it’s wise to favor 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.
Even though you might have to resort to these less desirable payment methods under certain conditions, it’s best to avoid them. Such methods are often complex to document and come with numerous problems. Banning these payment methods in lease agreements could serve to unequivocally state that such means of rent payment are not permitted.
Collect Through a Property Management Company
Rental properties can be a valuable investment, though the rent collection process may be cumbersome and lengthy, irrespective of the circumstances. Yet, should you wish to make the process easier, contracting with a rental property management company could be the solution you seek. 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 MetroWest-Worcester! Our property management services, bolstered by technology, include the option for online rent payment. Contact us online or call 508-329-6000 today to learn more about our quality services in Shrewsbury and nearby!
Originally Published April 1, 2022