One of the most vital components of having a profitable rental home is getting rent payments on time. But remember, to collect those payments, property owners are first required to select how that rent should be paid. There are widely different approaches to collecting rent payments. However, the suitable ones are those that fit your style of property management and your tenant’s wants and needs. To make your decision somewhat easier, here’s what you need to ascertain which excellent rent collection method is for you.
Variables to Consider
Getting the best rent collection method for you depends on plenty of different factors. As an example, look into 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 aid you to manage rent payments. Each of these parts can make you narrow your options down substantially. You may furthermore wish to take into account how often and in what way you want to interact with your tenants. While frequent positive communication is very beneficial for Saint Peters property managers, showing up each month only to collect the rent could send your tenant the wrong message.
Convenient and Well-Documented
Another vital thing to think of before picking a rent collection method is whether it corresponds to 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 effortless. A recent study showed that 83% of consumers prefer to pay their bills online. Though apart from convenience, it’s likewise necessary to retain good records of all rent payments and other transactions. Identifying a payment method that can impart both is vital for a well-managed rental property.
Payment Methods
There are two primary sets of payment methods: traditional and electronic. Traditional payment methods reflect property management methods of the past and are just what you’d expect: cash, personal check, cashier’s check, or money order. Even though there are considerations to request a money order or cashier’s check – in payment of a security deposit, for example – taking cash or personal checks isn’t excellent for most situations. Cash payments are complicated to document, and personal checks come with quite a lot of nuisances, 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).
Several electronic payment methods will impart a record of each transaction, making documentation automatic. But understandably, some tenants may be troubled, referring to the safety of sending money online or prefer not to use payment apps for monthly bills. The huge downside for property owners is the fees; all electronic payment methods usually will have added costs, so it’s essential to research each one in preparation for making your choice.
Automate and Communicate
With too many payment methods, it is necessary to select how you’d like to handle rent collection before it turns out to be a nuisance. The more automated the rent payment method you choose, the easier the entire process may be for you. Concurrently, 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 vital to communicate with your tenant and take into account endowing two or maybe three ways to pay the rent. This combination approach may be a perfect compromise, as long as each method imparts the convenience and documentation you need.
Collecting rent payments doesn’t have to be stressful, though it can be a nuisance to work something out all by yourself. Alternatively, think of the value of engaging 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 636-244-5959.
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