When you own a rental property, how you collect rent plays a huge role in your bottom line.
There are many different types of tenants out there and each one is going to have different preferences for how to pay rent. If you don't offer a variety of rent collection methods, you could make it difficult for yourself and your tenants.
At the end of the day, you want rent collection to be convenient. In this post, we'll tell you how to collect rent with 5 of the top ways. Rent collection doesn't have to be complicated, so keep reading and streamline your process for the future.
1. Automatic Bank Withdrawal
When you're figuring out how to collect rent from tenants, you're always going to look for simplicity. Automatic bank withdrawal gives you a rent collection process that you and your tenants don't have to think about.
Your tenant provides their bank information and you set up an automatic withdrawal into an account for that apartment. All you need to do is set up bank notifications when the payment arrives and you'll always know when the rent is there.
2. Online Payment Platforms
There are also countless apps and programs available for landlords to accept rent from tenants. For instance, you can make use of the many money transfer apps, like Zelle and Venmo, which require your tenants to send you money at the beginning of each month.
You'll also have access to landlord-specific programs, like Avail and Zillow, which give you a more comprehensive log of payments. The only problem with these programs is that they often charge fees for each transaction.
You're always going to have tenants who prefer to keep their payments offline. This is most common with older tenants and most states have Fair Housing laws that require you to provide at least one offline rent collection method.
Accepting cash might not be ideal for most landlords, but if you've got the time to collect and deposit it each month, it still works.
4. Post-Dated Cheque
The other thing you can do for these kinds of tenants is accept post-dated cheques. Instead of handing you cash each month, they'll give you 12 post-dated cheques at the start of the tenancy. You can then take a cheque to the bank every month and withdraw your rent payment.
5. Property Management Software
One of the best ways to streamline your rent collection process is to hire a property manager. Not only will an experienced property manager take care of rent collection for you, but comprehensive services will take most landlord duties off of your plate.
At Aksarben Property Management, we have an online portal that allows tenants to pay their rent quickly and effortlessly. You won't have to worry about late or missed rent payments, we'll handle it all.
How to Collect Rent the Right Way
Learning how to collect rent the right way is a process for every rental property owner. It depends on your tenants and their preferred payment methods. Providing one or more of these resources is your best bet to ensure you're paid on time, every time.
If you're finding it difficult to keep up with your landlord duties, it might be time to hire a property manager. Contact Aksarben Property Management today to learn more about our services.