Getting paid (and paid on time) is the cornerstone of your success as a landlord. Have you ever considered giving your renters a choice of a couple of different ways to pay? Or are you unhappy with your current method and want to try something different? Here are some ways that might make rent payment easier for both you and your tenants.
Sending checks by mail is traditionally a very common way to collect rent. There’s not much to say about this one. Tenant writes you a check and mails it. It’s a fairly reliable method, though things can get lost in the mail or delayed. A really nice way to make this easier for tenants (if desired) is to provide them with pre-addressed, pre-stamped envelopes.
Auto payments/direct deposit
These days, more landlords are offering tenants the option to pay automatically online. This way, tenants don’t have to buy checks and mail them out or stop by your office to pay. They don’t even have to think about it—the money will just automatically transfer from their account to yours on a specified day each month. However, keep in mind that there will be a cost to this unless you use a smaller bank that offers the option to do it for free. Depending on how much it costs you to set up auto payments, it may or may not be worth it.
Some landlords collect rent in person. If you only have a few properties, this is not a bad idea. It lets you see the property on a monthly basis and connect with the tenants. It can help you build a better relationship with your tenants and address any concerns with the condition of the property in a timely manner. Some tenants might not like the hassle of having you show up at their home, but others will appreciate not having to mail or drop off the payment.
Drop box or office drop-off
If all your properties are located conveniently close by, it’s good to include a drop off option. If you have an office, that’s great. If not, get a secure drop box installed in a convenient location and collect checks that way.
Online third-party tool
There are some rent payment services out there that promise to make the process hassle-free for both landlords and tenants. We haven’t personally tried any of these out, but they sound like a good way to collect rent online.
Outsource to property manager
Do you simply hate collecting rent and making sure everyone pays on time? Consider getting a property manager to take care of it all for you. This is by far the easiest method, provided you find a good and trustworthy property manager.
How do you collect your rent? Do you use traditional methods like mail, or do you use newer online forms of rent payment? Let us know!