What's the Best Way for a Property Owner to Collect Rent?
January 9, 2023 / by Hignell Property Management Team
As a property owner, one of your main responsibilities is to collect rent from your residents on a regular basis. There are a few different options for how to do this, and the best choice will depend on your specific circumstances and the preferences of your residents. Here are four common ways to collect rent:
If you and your resident live close to each other and have a good relationship, collecting the rent in person can be a convenient option. Simply arrange a time to meet up at the beginning of each month and have the resident hand over the rent payment. This can be a good way to ensure that the payment is received on time, and it can also be an opportunity to address any concerns or issues that the resident might have.
If you don't live close to your resident or prefer not to meet in person, you can have them mail the rent payment to you. This can be done through a check or money order, and it's important to provide a clear mailing address and instructions for how the payment should be made. While this option can be a bit more impersonal than collecting the rent in person, it can be a good choice if you don't want to deal with the hassle of coordinating a meeting.
Digital Financial Services
With the rise of digital financial services like PayPal and Venmo, it's now easier than ever for residents to send rent payments electronically. If you choose this option, you'll need to set up an account with one of these services and provide your resident with your payment information. They can then use the service to send the payment directly to you. This can be a very convenient option for both you and your resident, but there are pros and cons that you should seriously consider.
Automatic Bank Draft
Another option is to set up an automatic bank draft, where the rent payment is automatically deducted from the resident's bank account and deposited into your account. This can be a convenient option, as it ensures that the payment is received on time without you having to do anything. However, it's important to make sure that the resident has sufficient funds in their account to cover the rent payment, as insufficient funds can lead to overdraft fees and other problems.
Online Payment Portal
Another option for collecting rent is to use a property management portal. These portals, which are often provided by property management companies or property owners themselves, allow residents to pay their rent online through a secure website or app. Some property management portals also offer additional features, such as the ability for residents to submit maintenance requests or communicate with their property owner. Using a property management portal can be a convenient option for both property owners and residents, as it allows for easy and secure rent payment processing and can help streamline other aspects of the rental process as well.
Ultimately, the best way to collect rent will depend on your own preferences and the specific circumstances of your rental arrangement. It's important to communicate with your resident and come to an agreement on the payment method that works best for both of you. By doing so, you can help ensure that the rent is paid on time and that your relationship with your resident stays on good terms.
Topics: Resident Tips, Rental Property Tips, Commercial Property Management