Best Ways to Collect Rent – And Get Paid on Time

The main concern of most rental property owners is collecting the rent. Alongside how much rent you should charge, discovering how to manage it is one of the most important decisions any property owner will make. Having a decent rent collection method set up and prepared ahead of time is an ideal way to encourage on-time rent payments! Let’s discuss some of the effective ways to collect the rent from tenants and a few methods that are better to avoid.

Best Methods for Direct Rent Payment

• Online. When it comes to collecting the rent, there are various choices available. But with numerous individuals taking advantage of the affordances of online payment systems these days, the most in-demand rental payment method is – by far – online rent payment. Tenants prefer the security and convenience of making payments online, and property owners can get those payments deposited easily.
• Payment App. Another up-and-coming method for rent payment is payment apps like Venmo, Zelle, and PayPal. These tools are also incredibly beneficial for most tenants and can make requesting and sending money fast and simple.
• ACH Debit. Finally, some Round Rock property managers are now setting up ACH debit for their tenants, which can be another great way to ensure rent payments arrive on time. If the tenant is comfortable doing so, they can provide their bank account information and have their rent automatically deducted each month. Some tenants may not be OK with this course of action, so giving them a choice between two or three methods might be helpful. It’s also critical to remember that each payment method usually charges fees to use them. Fees vary, so it’s important to do your homework before picking one payment method.

Payment Methods to Avoid

Then again, there are a couple of payment methods that you ought to deter your tenants from using. For instance, you should refuse to take rent payments made in cash since creating a paper trail is very challenging. If a dispute arose, it would be difficult to prove when and how much your tenant actually paid. Personal checks are also risky because they take a long time to clear and can bounce if there are insufficient funds, resulting in bank fees for you and your tenant. Money orders and cashier’s checks are typically alright, mainly when collecting a security deposit. Just remember to specify which method you prefer and have a documentation method ready to create a solid paper trail.

While you may need to use one or more of these methods occasionally, it is usually best to avoid them. These methods are difficult to document and abundant with problems. You may even want to ban these payment methods in your lease documents to clarify that you won’t accept rent payments in these ways.

Collect Through a Property Management Company

Even under the finest circumstances, collecting rent can be a time-consuming part of owning rental properties. However, it shouldn’t be like that, especially if you engage with a rental property management company to perform the job for you. At Real Property Management All Connect, we offer tech-enhanced processes that include online rental payments.

Choosing 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!