Different Ways of Collecting Rent
To a the perfect tenant is someone who is courteous to other , maintains the rental property and most importantly pays rent on time. As a this can be very frustrating since you likely rely on your rent to pay business related costs such as taxes, and salaries for employees.
The strongest defense against having tenants that either fails to pay rent on time or at all is to conduct thorough background and credit and call previous landlord before you offer a lease. Even that pass background checks with flying colors may forget to pay rent on time. the manner in which you collect rent may lead to issues or delays in rent getting paid on time. Below are different types of rental payments and methods of collecting rent and the pros and cons of using each specific one.
Collecting Rent in Person: Collecting rent in person is probably one of the worse methods for collecting rent from tenants. Any method that includes you having to collect rent in person is going to be time consuming and wasteful. If a tenant fails to have rent when you come to collect it or is simply is not home you may need to make multiple trips to the rental unit and constantly barrage them until they pay.
Drop-Off Location: Having tenants drop off rent at your office is one option landlords can choose. However, it is unwise to have tenants drop-off their rent at a home address. If your office address is not located on the rental property, it may be very inconvenient for tenants to drop off rent which could lead to late rent payments. Some landlords may choose to have a drop off location be the super’s apartment if they trust that their super is capable of handling this major responsibility.
By Mail: You could allow tenants to send a rental check by mail. While this method means no one will have to collect rent, and it is generally convenient for tenants there are several drawbacks. The most significant drawback is that you could receive the check after the due date or the check could be for the wrong amount which further delays getting paid. Also, a tenant could lie and say they sent the rental check when they did not.
Online: Accepting payments online if setup correctly could be the easiest and most efficient method for collecting rent. Online payments allow a tenant to send rent in the comfort of their home directly to a landlord. A landlord does not have to worry about losing the payment in the mail or traveling to the rental to pick up the check. Many property management system software programs like RISSOFT property management software enables landlords to collect rent through payment portals and keep track of all accounting.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.