If you are a landlord, one of the things to take into consideration is to find the best way to collect rent online from your tenants and for them, to easily do it. If you manage the cash flow well and collect the rent on time, handling rental properties can be a profitable business for you.
First of all, you should think of all the possibilities and also determine your policy for rent payment and also inform the tenant during the vetting process.
There are several aspects to take into consideration when you choose the way to collect the rent such as how far away you live from the rented property, the number of your properties, how much you like to relate with the tenants, how relaxed you are with technology and so on.
Here we will give you some suggestions from which you can choose, in order to receive the rent on time and get rid of concern linked to this:
- Automatic online transfer.
You can choose the automatic online transfer with direct deposit or auto withdrawal. In that respect, you need to talk to the bank and set up an automatic transfer from your tenant bank account or their paycheck to your own checking account.
- Online payment service
One of the easiest way for a landlord to accept rental payments and for a tenant the best way to pay his rent is online. There are many online rent payment services that offer such facilities, each with different fees depending on the plan selected. The payment service sites could include an online rent roll, the possibility to upload forms or documents for your tenant and also the ability to send messages. These sites are a great choice if you don’t want to give your banking information to your tenant.
- Direct rental payments by bank deposit
If you require the payment by bank deposit, the tenants will directly deposit their rent into your banking account. Many landlords are susceptible in using this method because this involves giving your tenants your account number and if you have concerns regarding the tenant’s integrity this may be an extra care.
- Hiring a property management company
A property manager can collect the rent or manage maintenance requests in your place. You can choose to hire a property manager especially when you have several properties rented or in case you have other business to look after.
- Collecting the rent in person
If you want to collect the rent in person from your tenants, you will have the payment in your hands immediately and you can also see the condition of the property if you have written into the lease, the possibility for a monthly property inspection. The negative aspect of this way is that collecting the rent in person is time-consuming and annoying when you try to organize the pick-up time with a tenant.
Receiving the payment from your tenants each month or at a certain period of time and the method used for payment is an important aspect that must be specified in the lease. All matters concerning the lease must be discussed with the tenant beforehand to be more apt to pay fully and on time, and for each party to be satisfied.