Best Ways to Collect Rent – And Get Paid on Time

For rental property owners, having a robust rent collection plan is crucial. Selecting a proper rental rate and managing rent payments are pivotal decisions for property owners.

Establishing an effective rent collection scheme and preparing ahead of time can lead to timely rent 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. At present, there exists a multitude of methods to collect rent from tenants. However, as online payment systems gain popularity, online rent payment has become the preferred method of rental payment. This approach grants tenants the simplicity and security of online transactions, ensuring landlords receive payments on schedule. Online rent payment has become known as a solid and convenient choice for tenants and property owners.
• Payment App. A fresh and modern method for paying rent involves the use of platforms like Venmo, Zelle, and PayPal. For their convenience and simple usability, these services have achieved great popularity 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. Property managers are currently utilizing novel techniques to ensure rent is paid promptly. ACH debit represents one of these new approaches. This method permits tenants to supply their bank account info for rent to be automatically withdrawn each month. Nonetheless, this setup may not sit well with some tenants, making it crucial to provide a selection 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. Hence, doing your due diligence prior to choosing a payment method is crucial.

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 case of disputes, evidencing the timing and amount of rent paid by your tenant might be challenging. Therefore, it’s wise to favor payment methods that provide a clear and easily accessible record.

Opting for personal checks may not be favorable due to their slow processing time and risk of bouncing, leading to bank fees for both you and your tenant. In scenarios like these, money orders and cashier’s checks are more advantageous, especially for securing security deposits. It is crucial to unambiguously state your preferred payment method and to have a method for documentation to establish a robust paper trail, thus preventing future disputes 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. 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

Rental properties can yield significant returns, yet the task of rent collection is often arduous and lengthy, regardless of circumstances. However, for those aiming to streamline the process, enlisting the services of a rental property management company could provide the solution. 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 Crossroads! Our property management services, enhanced by technology, offer online rent payment options. Contact us online or call 317-218-7800 today to learn more about our quality services in Indianapolis and nearby!