The average landlord owns three rental units. That means that if one of the tenants does not pay their rent, the landlord has to deal with financial obligations on their own. It may mean taking money out of their pocket.
Rent collection is a big issue for landlords. The landlord may not live in the same location as the tenant or may even have another job that prevents them from collecting in person. Paying rent needs to be easy for tenants.
Is rent collection an issue for you? If you want to find out the best ways to collect money when rent is due, read on.
Rent Collection by Mail
An older tenant may prefer to pay by mail. They may still use checks, and they may not be comfortable with electronic forms of payment. Sometimes banks want to hold personal checks before releasing the funds, though.
If you have a tenant that is not comfortable with electronic payment methods, make paying rent by mail an option. It's not recommended to make it available to everyone, though.
Collect Money Via a Dropbox
If you have an apartment complex or several units in one house, you can use a dropbox in the building specifically for rent collection. It's convenient for the tenant because the dropbox is where they live.
If you don't live near your rental property, this option may not work for you.
Collecting Rent Through Bank-to-Bank Deposits
Electronic bank transfers are becoming a common means of collecting rent. Most people know how to make an e-transfer from their bank to another person. Some banks charge a fee for electronic payments.
When there are multiple people in the house who pay rent, this can be a good option. They can make their rent payments separately without any fuss.
Make sure your tenants won't have to pay a fee. If they do, make this a secondary option for collecting rent.
Work With a Property Management Company
If you have only a couple of tenants, rent collection may not be stressful or complicated for you. What do you do though when you have many tenants and it becomes increasingly difficult to manage?
Property management companies specialize in all sorts of landlord/tenant issues on behalf of the client, including rent collection. This is their only focus so they can collect money for rent in a variety of ways.
Not only will a property management company make sure your rent is collected on time and delivered to you, but they can deal with other issues, such as repairs and conflicts.
Simplify the Rent Collection Process
If you need landlord advice on a regular basis, a property management solution may be what you are looking for.
You won't have to deal with the many ways that tenants like to pay rent. Rent collection is left to the property management company.
If you think property management is the right solution for your rent collection needs and other management tasks, click here to find out more about our services.
Bonnie is the visionary that has driven the company and culture of Avalon since 1993. Her passion is improving procedures and practices; incorporating technology and value added services for both our clients and tenants.