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Best Ways to Collect Rent – And Get Paid on Time

St Peters Tenant Paying Rent on Their PhoneThe collection of rent is a major source of anxiety for the majority of rental property owners. One of the most critical considerations any property owner will make, along with how much rent to charge, is how to manage it. The greatest strategy to encourage on-time rent payments is to have a good rent collection technique set up and ready in advance! Let’s take a look at some of the most effective strategies for collecting rent from tenants, as well as a few to avoid.

Best Methods for Direct Rent Payment

  • Many choices are available when it comes to collecting the rental money. The most popular rental payment option is, by far, online rent payment, which is a result of a large number of people who are taking advantage of the conveniences offered by online payment systems these days. Tenants appreciate the security and simplicity of making payments online, but property owners benefit from the quicker deposit of those funds.
  • Payment App. Payment apps like Venmo, Zelle, and PayPal are other up-and-coming alternatives for rent payment. Many tenants find these services to be extremely convenient, as they may make asking and sending money quick and simple.
  • ACH Debit. In addition, some St Peters property managers are now setting up ACH debit for their tenants, which can be another way to make sure rent is paid on time. If the tenant is satisfied with it, they can supply their bank account details and have their rent withdrawn automatically each month. Given that some tenants may be uncomfortable with this arrangement, it may be beneficial to provide them with a choice of two or three alternatives. It’s also important to keep in mind that each payment method usually charges a fee to use it. Before settling on a certain payment option, it’s prudent to shop about and compare rates.

Payment Methods to Avoid

There are a few payment methods, however, that you should discourage your tenants from utilizing. Accepting cash payments for rent, for example, is a bad idea because keeping a paper trail is cumbersome. In the event of a dispute, establishing when and how much your tenant actually paid would be challenging. Personal checks are particularly problematic since they take a long time to clear and may bounce if there is insufficient money, costing you and your renter bank fees. Money orders and cashier’s checks are generally acceptable forms of payment, particularly when collecting a security deposit. Simply pick whatever approach you like and have a mechanism for documenting your actions ready to generate a reliable paper trail.

While one or more of these procedures may be necessary on occasion, it is generally preferable to avoid them. These procedures are difficult to document and riddled with weak points. You may even wish to include a prohibition on these payment methods in your lease documents to make it clear that you will not accept these forms of rent payment.

Collect Through a Property Management Company

Even in the best-case scenario, collecting rent may be a time-consuming aspect of property ownership. However, this does not have to be the case, especially if you hire a rental property management company to assist you. We offer tech-enhanced operations at Real Property Management Three Bridges, including online rental payments.

Hiring a property management company is one of the best ways to keep your rent payments coming in on time, month after month. Contact us today to learn more about our quality services

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.