Every month your tenant needs to pay their rent. It's on you to ensure they have an easy way to pay it. Collecting rent can make you seem like the “bad guy” in the eyes of some tenants. Ensuring you provide the best way for them to pay their rent can complete the transaction far more accessible for them and more convenient for you.
Today we’ll review some of the best practices you can do when collecting rent from your tenants.
The simplest way to collect rent is to pick it up in person. It may seem inconvenient because you must set time aside from your schedule to pick it up at first glance. However, picking up the rent in person does have a few benefits. It allows you to see how the property’s exterior is doing. You can see firsthand any issues the parcel may be dealing with. Collecting rent in person can help tenants form a good habit of paying on time. This also opens up a channel of communication with your tenants. Having good communication with tenants is a great way for them to inform you directly of how your Long Beach rental property is doing. During your visit, you can also do simple maintenance in the building, such as inspecting the fire alarms, air filters, and lighting.
Having tenants send money orders or checks through the mail is a tried and true way for tenants to pay rent. That being said, it's advised for you to set up a PO Box if you don’t want your tenant to know your address. While mailing in rent does work, paying rent is relatively slow. Although a tenant may send the rent off on the first of the month, you may not receive it for three to five days, which means that even though they’ve paid already, the old saying “checks in the mail“ begins to make more sense.
Giving tenants the most choices to pay rent is vital to ensuring they deliver it on time. Nowadays, everyone owns a computer or a smartphone, making paying and collecting rent incredibly easy and hassle-free. Save yourself a trip to the bank as well as your tenants. Online payments reduce the cash and checks you need to handle, which can cause some concerns. Online prices are incredibly accurate as they can be tracked in real time by the tenants and landlords. While convenient, paying online has a couple of negatives, namely the potential for fraud. Tenants must provide their financial information for online payment, which hackers can sometimes steal. Online prices may also include fees to use their system. These fees can quickly add up over time, which isn’t great when working with a small budget.
One of the most critical services a property management company provides. As a new month begins, a good property management company should be able to collect rent from tenants using various methods such as paper checks, online payments, cash, or automated payments. If you decide to manage your rental property, keeping up with all the options can be daunting. Property management companies aren’t just “rent collectors'' they provide many services. Having a property manager comes with a cost, and you must decide if the benefits outway the price.
Every situation is different, and ensuring you receive rent consistently is critical to success. If you’re unsure of how to collect rent best or have more questions on the best practices, we invite you to call us today at (562) 888-0247, or you can fill out our
Owner Application online.
