Have you decided to dip your toes into the exciting world of Antelope Valley real estate? As a new landlord, you're going to have a lot of responsibilities on your plate. One of them is rent collection.
If your tenants don't pay on time every month, it will interrupt your cash flow. As you can imagine, this will make it more difficult for you to pay your bills.
While many landlords still accept paper checks, they don't come without their issues. Checks bounce. You also have to wait for them to clear before you get paid.
There are other ways to collect rent that are more efficient and convenient than checks. Continue reading to learn more.
Online Payment Portal
The best way to collect rent is through a tenant portal. They're convenient because they allow residents to make monthly payments without leaving their homes.
Tenants can set up direct deposit through the portal. The money will be transferred directly from their bank account to yours each month, so they don't have to worry about late fees. Most tenant portals even include a tab for tenants to put in maintenance requests.
Many landlords use a property management company's rent collection services to set up their tenant portals.
ACH transfer is an electronic process where money is transferred from one bank account to another. Like online portals, ACH transfers provide tenants with a convenient way to pay their rent. Again, if you have a tenant portal, residents can set it up themselves.
However, you don't need a portal to take advantage of ACH payments. You can request that tenants pay you via Zelle.
The more rental properties you have, the more payment apps become a nuisance than a help. They aren't meant for large transactions like rent payments.
However, if you only have one or two tenants, payment apps can be a convenient way to receive rental payments. Keep in mind that it will take a few days for the funds to appear in your account unless you pay for an instant transfer. That will make it a little harder to maximize your rental income.
A few good payment app options are PayPal, Venmo, Google Pay, and Cash App.
If you prefer to handle your rent physically, you can provide your tenants with a drop-off location. This way, they can turn in their rent even while you're out of the office, and you'll receive it when you come in the next day.
Be sure to provide your tenants with plenty of ways to pay. Checks and money orders are both good options.
You should also tell your tenants to place their rent in a sealed envelope before dropping it in the box. This way, it will be less likely to get lost.
Rent Collection Methods That Work
As a landlord, you have a lot of tasks to handle. One of them is rent collection. When you're paid late, it will be more difficult for you to pay your bills.
Property management services can take care of collecting rent while you take care of more important tasks.
For over 20 years, PMI Antelope Valley has been helping landlords like you get paid on time every month! Contact us for a free rental analysis!