Best Ways to Collect Rent – And Get Paid on Time

The 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 method in place and ready ahead of time. Examine some of the most effective strategies for collecting rent from tenants, as well as a few that should be avoided at all costs.

Best Methods for Direct Rent Payment

• There are a variety of choices available when it comes to collecting the rent. 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 provided by online payment systems these days. Tenants like the security and simplicity of making payments online, and property owners benefit from having money placed into their accounts more quickly.
• Payment App. Payment apps such as Venmo, Zelle, and PayPal are other methods of making rent payments that are becoming increasingly popular. For many tenants, these services are also quite useful, as they make requesting and delivering money quick and easy.
• ACH Debit. Finally, some Olympia property managers are now allowing their renters to set up ACH debit, which is another wonderful approach to ensure rent payments are received on time. If the tenant is comfortable, they can supply their bank account details and have their rent withdrawn automatically each month. Some tenants may object to this arrangement, therefore providing them with a choice of two or three options may be beneficial. It’s also important to keep in mind that each payment method usually charges a fee to use it. Because fees vary, it’s critical to conduct your research before committing to one payment option.

Payment Methods to Avoid

There are a few payment methods, on the other hand, that you should discourage your tenants from utilizing. For instance, you should avoid receiving rent payments in cash because maintaining a paper trail is quite difficult. 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 insufficient funds are available, causing bank fines for both you and your tenant. When collecting a security deposit, money orders and cashier’s checks are frequently acceptable. Simply pick whatever approach you prefer and have a method for documentation ready to generate a solid paper trail.

While you might need to utilize one or more of these approaches on occasion, it’s normally advisable to avoid them. These methods are difficult to document and are riddled with flaws. You might even wish to include a clause in your lease documents prohibiting these payment methods to make it clear that you will not take rent payments in this manner.

Collect Through a Property Management Company

Rent collection, even in the best of circumstances, may be a time-consuming aspect of owning rental properties. 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 Imagine, 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!