One of the most essential parts of possessing a profitable rental home is obtaining rent payments on time. Nevertheless, to accept those payments, property owners first have to pick an option on how that rent should be paid. There are various methods to collect rent payments. But really, the best ones are those that fit your style of property management and your tenant’s wants and needs. To help you make an easy choice, here’s what you need to realize to be able to decide on the most ideal rent collection method for you.
Variables to Consider
Having the best rent collection method for you depends on various factors. For instance, think of how many tenants you will need to collect from each month, how far away you are from your rental property, and how comfortable you are with incorporating technology tools to assist you to manage rent payments. Each of these components can help you to narrow your options down significantly. You may moreover need to check on how often and in what way you want to interact with your tenants. While frequent positive communication is very beneficial for Lawrenceville property managers, showing up each month only to collect the rent could send your tenant the wrong message.
Convenient and Well-Documented
Another essential thing to take into consideration before selecting a rent collection method is whether it suits two key criteria: convenience and the ability to document each transaction. Now more than ever, today’s renters are looking for tech-driven conveniences to make their lives simple. A recent study discovered that 83% of consumers prefer to pay their bills online. However, besides convenience, it’s also significant to maintain good records of all rent payments and other transactions. Knowing a payment method that can give both is significant for a well-managed rental property.
There are two basic sorts of payment methods: traditional and electronic. Traditional payment methods reflect property management means and methods of the past and are just what you’d expect: cash, personal check, cashier’s check, or money order. Although there are solid reasons to request a money order or cashier’s check – in payment of a security deposit, for example – collecting cash or personal checks isn’t good for most circumstances. Cash payments are difficult to document, and personal checks come with various concerns, from slow delivery to long wait times as checks clear the bank.
On the other hand, electronic payment methods have become a lot more different over the last few years. Property owners can choose from electronic payment options like ACH transfers and Square, but now money can easily be sent through payment apps like PayPal, Zelle, and Venmo (to name a few).
Numerous electronic payment methods will give a record of each transaction, making documentation automatic. But on the other hand, some tenants may be anxious about the safety of sending money online or prefer not to use payment apps for monthly bills. The greatest downside for property owners is the fees; nearly all electronic payment methods will have added costs, so it’s relevant to research each one before ever making your final judgment.
Automate and Communicate
With so many payment methods, it is vital to make up your mind about how you’d like to handle rent collection before it becomes a real concern. The more automated the rent payment method you choose, the easier the entire process may be for you. Simultaneously, tenants may feel restricted if you accept only one payment method, especially if it relies on a technology they aren’t comfortable using. For this reason, it’s significant to communicate with your tenant and offer two or maybe three ways to pay the rent. This combination approach may be the right compromise, as long as each method gives the convenience and documentation you need.
Collecting rent payments doesn’t have to be complicated, nevertheless, it can be a concern to find a solution all by yourself. Rather, take into consideration the advantages of employing a property management company that offers convenient online rent payment options. If you’re ready to turn the day-to-day tasks of managing a rental property over to the professionals, give us a call at 770-733-1848.
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.