Skip to Content

Get a FREE assessment of your rental property. Start here!

Get a FREE assessment of your rental property. Start here!

Best Ways to Collect Rent – And Get Paid on Time

Key West Tenant Paying Rent on Their PhoneThe essential concern of most rental property owners is collecting the rent. Apart from how much rent you should charge, puzzling out how to manage it is one of the most important decisions any property owner will make. Having excellent rent collection methods established and available ahead of time is the appropriate way to encourage on-time rent payments! Let’s examine a few of the best solutions 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 alternatives. Though with so many people accessing the affordances of online payment systems these days, the most in-demand rental payment method is – by far – online rent payment. Tenants appreciate the security and convenience of making payments online, and property owners can get those payments deposited sooner.
  • Payment App. Another up-and-coming method for rent payment is payment apps like Venmo, Zelle, and PayPal. These services are furthermore very easy and simple for multiple tenants and can make requesting and sending money instant and trouble-free.
  • ACH Debit. At last, various Key West property managers are now positioning ACH debit for their tenants, which could be another efficient way to make certain rent payments show up on time. If the tenant is comfortable doing so, they can provide their bank account information and have their rent automatically deducted each month. Many tenants may not be comfortable with these measures, so it may be beneficial to give them a choice between two or three methods. It’s likewise vital to note that each payment method usually charges fees to use them. Fees vary, so it’s important to do your homework before finally opting for one payment method.

 

Payment Methods to Avoid

But on the flip side, there are several payment methods that you should inhibit your tenants from using. As an example, you should abstain from getting rent payments made in cash for the reason that creating a paper trail is very stressful. If a dispute arose, it would be difficult to prove when and how much your tenant paid. Personal checks are additionally difficult on the account that 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 oftentimes pretty good, in particular when collecting a security deposit. Just be certain to specify which method you prefer and have a documentation method ready to create a solid paper trail.

Though you may want to periodically make use of one or more of these methods, it is generally advised to avoid them. These methods are hard to document and overflowing with problems. You may even want to ban these payment methods in your lease documents to clarify that you won’t accept rent payments via these methods.

 

Collect Through a Property Management Company

Even under the best circumstances, collecting rent can be a time-consuming part of owning rental properties. But certainly, it doesn’t have to be that way, mainly if you enlist a rental property management company to deal with the system for you. At Real Property Management Sunshine, we offer tech-enhanced processes that include online rental payments.

Contracting 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!

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.