As a property owner, receiving rent payments on time is important for maintaining a successful rental home. But, as a matter of fact, before receiving those payments, you must take into consideration several rent collection methods available and opt for the one that best suits your management style and tenants’ requirements.
With plenty of options, opting for the ideal rent collection method can be mind-blowing. Then, it’s vital to understand the available methods and assess their pros and cons to make an informed decision. This will make certain that you receive rent payments promptly without any worry.
Variables to Consider
If you’re trying to determine the best way to collect rent, there are certain things you should look into. Take for example, how many tenants do you need to take from each month? Do you feel right using technology tools to manage rent payments? Taking into consideration these factors, you can hastily narrow your options and determine the right fit.
When managing a property, you must take into account the frequency and manner of your interactions with your tenants. While, oftentimes, engaging in positive communication can be good, only coming around to collect rent each month can give off a misconception and the wrong impression. It is vital to strike a balance between being suitably involved and giving your tenants the space they need.
Convenient and Well-Documented
Before you determine how to collect rent, ask yourself two things – is it hassle-free, and can you keep track of every transaction? These days, renters want tech that makes their lives much easier.
Did you know that, according to a recent study, 83% of consumers prefer online bill payment? It’s no surprise, as online payments are practically convenient, quick, and easy to handle. But take note, keeping track of all rental payments and other transactions is also certainly important. Finding a payment method that provides both convenience and accurate record-keeping is essential to managing your rental property suitably and successfully.
Payment Methods
There are two main categories of payment methods: traditional and electronic. Traditional payment methods include cash, personal checks, cashier’s checks, and money orders, which have been applied in property management for the longest time. But on the other hand, electronic payment methods have become more popular and diverse in recent years. These days, property owners can pick from different electronic payment options such as ACH transfers and Square. Furthermore, payment apps like PayPal, Zelle, and Venmo have made sending and receiving money electronically uncomplicatedly easy.
Accepting cash or personal checks for payments can be complicated. Cash payments don’t really come with proper documentation, while personal checks can take a while to clear the bank. Due to this, it’s typically better to go for money orders or cashier’s checks. They are generally more dependable and simple. When your tenant is paying a security deposit, it’s absolutely reasonable to use a money order or cashier’s check.
Electronic payment methods offer a substantial advantage over traditional payment methods, as they furnish a detailed record of each transaction. This element makes documentation automatic, banishing the need for manual documentation of each payment. This not only saves time but additionally helps keep track of your expenses and maintain financial records for later usage.
Automate and Communicate
Concerning collecting rent, picking a suitable payment method is very important. By choosing a more automated rent payment method, you can streamline the overall process and make it easier for yourself. In this fashion, you can prioritize other important aspects of managing your property without worrying about rent collection.
It’s crucial to offer tenants plenty of payment options to keep from restricting them to a single method that may lean on a technology they are not comfortable using. We propose endowing two or three payment methods and discussing the options with your tenant to guarantee ease of payment and proper documentation. A combination approach can be a useful compromise as long as each system meets your requirements for documentation and convenience.
Take time to consider the benefits of hiring a property management company. Real Property Management Seasons grants tenants trouble-free online rent payment options. If you’re ready to turn the usual duties of managing a rental property over to the professionals, contact us online or call us at 615-333-6858.
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