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Around 34% of Americans rent, which shows how important it is for landlords to create a rental collection system.
Discovering the best way to collect rent as a landlord streamlines the process and ensures that you receive a monthly income. But if you've never checked out the different options, you won't find the best fit for your needs.
If that sounds like you, you've come to the right place. Here are five options to take onboard.
1. Online Payment System
One of the most popular landlord payment methods is online. You may not live locally and it's easier for the tenant to transfer rent via bank transfer. Or, if you don't want to go through banks, use a trustworthy rental payment system like DoorLoop, TenantCloud, or GoCardless instead.
Further, property management companies use software to streamline the process. In the software, property managers send reminders so that tenants know when rent is due. There's also the opportunity to communicate, which means that if there is a potential late payment, tenants can easily notify managers.
2. Payment Apps
Another example of efficient rent collection is using payment apps. Venmo, PayPal, and Zelle have boomed in popularity, thanks to being convenient and secure. Landlords can accept monthly rent collection via their smartphone, knowing that there is little risk of a late payment.
3. Automated Payments
If you're looking for property management tips, know that most companies recommend automated rent payments. To set it up, tenants must enter their bank details and set up a monthly payment. By using this technology, tenants needn't worry about transferring money because their bank does it automatically.
4. Check
Sure, it may be old-school, but check payments still stand the test of time. Occasionally, technology can let us down, so it's a good idea to have a backup solution. But because checks can bounce, landlords should regularly monitor transactions to ensure that rent has gone through.
5. In-Person
Although collecting tenant rent in person is less popular, you can still do it, especially if the landlord lives locally. However, the downside is that you must arrange a meeting with tenants who can't always be present.
A great solution is installing a rental collection drop box at the property. Tell the tenant the agreed date and they can drop off the check or money order for landlords to collect. Or, if the landlord isn't local, a property manager can do it on their behalf.
Regardless of your choice, include these payment terms in the lease terms and communication so both parties are on the same page.
What Is the Best Way to Collect Rent as a Landlord?
Hopefully, after reading this article, you've found the best way to collect rent as a landlord to suit your situation. If you value efficiency, using property management software or setting up automated payments is the best option.
At Austin Property Management, our licensed professionals offer services to keep tenants happy and create a smooth rental collection process.
Interested in our services? Then, we'd love to hear from you! Contact us here to chat with a member of our team.
