One of your tenants claims to have sent you a check in the mail recently, but you've yet to receive anything. They swear up and down that it's real and you need to wait, but meanwhile, their rent isn't paid. Soon enough, you're wondering whether or not to proceed with the eviction process.
Rent collection is one of the biggest struggles for landlords, as you want to make it easy for both yourself and your tenants. Even though someone signs up for a 12-month lease, that doesn't guarantee that you'll get your money.
Read on to learn some of the different ways you can collect your rent payment and follow up with your tenants.
Direct Deposit for Rent
An easy way to get money is through a direct deposit. There are plenty of apps that facilitate this process, and you can also do it straight through your bank. Plus, you won't have to worry about your money getting lost in the mail.
The only downside of a direct deposit is that it usually requires one-on-one interaction, which isn't always possible if you have a lot of different properties.
Check or Cash
One of the messiest ways to collect your rent is with cash. There's no digital or paper trail, so both tenant and landlord will need to manually track payments.
Getting a check is a little less problematic, but it may not get processed if the account holder does not have sufficient funds in their account. Neither account will show information like send or recipient, as well.
Rent Collection Software
If you rent out to multiple tenants, it may be worthwhile to invest in rent collection software. An automated payment portal allows for timely and efficient payments online. Tenants can choose their payment method and pay on their own time.
Using this type of software requires certain fees, but it allows you to automate certain tasks like payment reminders and documentation.
Hire a Property Manager
The best way to collect rent is to get a property management company to do it for you. Like with rent collection software, you can rely on a property manager to send out reminders and collect money on your behalf. However, their services go well beyond just rent collection.
You can expect them to do things like handle maintenance, answer tenant questions, and even find new tenants to fill any vacancies. You may need to hire a property management company as your investment portfolio grows.
Find the Best Way to Collect Rent
Rent collection shouldn't leave you wondering whether a check will clear or if something got lost in the mail. Unless you can personally vouch for a tenant or collect cash first-hand, it's almost always better to use some kind of rent collection software. That way, you get records of the transaction, and the money goes straight into your account.
Better yet, let Key PA Property Management handle your tenants. Our services cover both commercial and residential properties in the Chester County area. Contact us to learn more about how we can help you.
