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 examine the most effective rent collection techniques from tenants and identify which strategies to avoid.

Best Methods for Direct Rent Payment

• Online. At present, there exists a multitude of methods to collect rent from tenants. With the rising popularity of online payment systems, the preferred method for rental payment is increasingly becoming online rent payment. This approach grants tenants the simplicity and security of online transactions, ensuring landlords receive payments on schedule. Online rent payment is now recognized as a dependable and handy choice for both tenants and property owners.
• Payment App. Apps like Venmo, Zelle, and PayPal introduce a modernized way to handle rent payments. Tenants and landlords alike have widely embraced these services for their ease of use and convenience. With the capacity to promptly request and send money, tenants find that paying rent becomes quick, efficient, and trouble-free.
• ACH Debit. New approaches are being implemented by property managers to guarantee timely payment of rent. ACH debit is one method among these. This method permits tenants to supply their bank account info for rent to be automatically withdrawn each month. However, since some tenants might find this arrangement unsettling, it’s vital to offer a choice of two or three payment methods. Furthermore, it’s significant to acknowledge that each payment method usually involves charges, which can substantially vary. Thus, conducting thorough research before selecting a payment method is imperative.

Payment Methods to Avoid

Encouraging tenants to stick to specific payment methods for rent is recommended. 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. Consequently, it’s best to choose payment methods that provide a clear and easily accessible record.

Personal checks could be a poor choice as their clearance can be slow and they may bounce, causing bank fees for both the landlord and tenant. Consequently, money orders and cashier’s checks become more appealing choices, especially for security deposit acquisitions. Specifying your preferred payment method clearly and ensuring a documentation process is in place for a solid paper trail is critical to preventing future disputes or misunderstandings.

There might be instances requiring the adoption of these suboptimal payment methods, yet it’s wise to keep away 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

While rental properties offer a profitable venture, the process of collecting rent can prove to be laborious and time-intensive in any situation. Nonetheless, if your objective is to simplify the operation, the employment of a rental property management company could be the ideal resolution. 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 Trailhead! Our property management services, bolstered by technology, include the option for online rent payment. Contact us online or call 817-930-1160 today to learn more about our quality services in Crowley and nearby!

Originally Published April 1, 2022