The beginning of every month is an essential day for tenants and landlords alike. While some tenants may not look forward to their rent’s due date, landlords must give their tenants as many options to pay. The more options you offer your tenant, the less likely you’ll receive late payments or have an issue collecting rent.
The traditional cash or check payment may be reliable, though they must be more relevant when
collecting rent. Could you check local and state laws regarding rent collection methods? Additionally, some rent collection methods can involve several fees or transaction costs. Landlords should consider these when deciding on the best approach for rent collection, as you don’t want to upset a tenant with additional expenses.
There are more ways for you to collect your tenant’s rent. Today, we’ll go over five new methods used to collect rent.
When paying rent, bank transfers are nothing new, though having the payment done automatically can benefit both parties. Much like an online subscription, a landlord can set up an automatic monthly withdrawal from the tenant's bank account with the tenant's permission. This can ensure timely payments, give you peace of mind, and give your tenant one less payment they must manage.
A variety of apps are designed specifically to collect rent from tenants. Applications such as Avail and Zillow Rental Manager. While distinct, mobile rent-collecting apps allow tenants to pay their rent on time and have a comprehensive digital log of payments and receipts. Some apps also provide an easy way for tenants to report their on-time rent payments. This can help them to improve their credit score. Some fees may apply, though typically negligible and, in some cases, free.
There are applications and software for more than just collecting rent. Property management software like Buildium or AppFolio frequently includes rent collection features, among other tools for landlords, such as maintenance requests and the ability to create a website for your property, among other systems. These apps aren’t one size fits all, though. For example, many reviews state that AppFolio is best suited for landlords with over 50 units, whereas Buildium caters to different sizes and types of rental portfolios.
Platforms such as PayPal, Venmo, Cash App, or Zelle are used daily by people for all sorts of expenses. Using these platforms to accept rent payments electronically has become incredibly popular. Usually, these apps have little to no fees associated with transactions. However, they’re only used to transfer money and offer very little to help with other aspects of managing your property.
While not a new way to collect rent like the other services in this article, entire service property management companies need to be up to speed with how rent can be collected. And can collect rent on time to allow landlords to invest in other projects or live life. Landlords have hired professional property managers to collect rent and handle the process. These services typically include added benefits such as debt collection if rent is not paid or fees if rent is paid late.
Collecting rent doesn’t need to be complicated. After all, it's a simple transaction for a service. If you need help collecting rent or setting up some of the methods described above, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.
