There was a time when collecting rent meant traveling to each rental and collecting cash or a check from your tenant. This eventually became a mailing service. However, these methods were time-consuming, and collecting checks would add additional time for them to clear. Both of these methods also had associated risks, such as the risk of cash being stolen or a check bouncing due to insufficient funds, which usually resulted in a fee for the landlord. Online payments are not only accurate but they can also be tracked in real time. This can notify you and your tenant when payment has been processed, eliminating the need to double-check if the correct amount was paid.
Luckily, there are new methods that are quick and efficient and can be done online or through a phone app. While there is no
best way to collect rent, we’ll go over three new ways to collect rent online.
Nowadays, everyone has a computer or a smart device with access to the internet. You can take advantage of this when collecting rent. There are many applications, such as Zelle and Venmo, which can make it easier to collect rent every month without the need for you or your tenant to go to the bank. Using a system like this allows you to collect rent incredibly conveniently, as tenants can pay quickly and easily online while saving time and energy. Many of these applications have the option for recurring charges.
If you decide that this is the route you want to use to collect rent, it's important that your tenant is also comfortable using this application. For many tenants, the first of the month can feel frustrating because rent is a significant portion of their bills. However, if you have an automated payment system, it can give you and your tenant peace of mind. This is because, ultimately, it's no longer a concern to run to the bank or accidentally forget, which can result in more stress for your tenant.
You should take the opportunity, whenever possible, to make life easier for your tenant. This can lengthen your tenants' stay, resulting in an excellent tenant-landlord relationship. As we know, a happy tenant is a consistent tenant. Online payments are also accurate, can be tracked in real-time, and tenants can be notified when their rent has been received. This eliminates the need to manually check for payment accuracy, such as if the amount paid is correct.
Transferring money for rent through banks isn't anything new. That being said, in modern times, many processes that used to require a visit to your local bank can now be done online. Most banks have options for automatic withdrawals, though only some are comfortable with their banks having direct access to their money. Online payments are beneficial for both parties, because neither the tenant nor landlord needs to go anywhere but their phone or computer to pay rent. While not automatic, allowing your tenant to manage their payments themselves can end in the same result of a happy tenant.
Allowing a tenant the most options to pay rent is a good idea. This is vital to their comfort levels, and if rent is being delivered on time, regardless, there should be few issues.
For a more comprehensive application for rent collection, you can opt to have your tenant use dedicated property management software such as Buildium or AppFolio. These applications often include rent collection features, among other tools landlords can find helpful like the ability to create a website for your rental property, or manage maintenance requests, among other features. Before you decide on these apps, they’re not built for every scenario. Many reviews for these apps recognize that AppFolio is best suited for landlords with over 50 units. Buildium, on the other hand, is built to work with different sizes and types of rental portfolios.
Collecting rent shouldn’t be stressful for either party. If you are looking for assistance in learning how to collect rent online or need a property management company to manage rent collection, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.
