According to the latest data from the Census Bureau, renters comprised 36% of the 122.8 million US households. However, renters come from all walks of life, so how do landlords appeal to and keep their tenants?
One easy way is to make the rent collecting process as simple as possible. Not only does this make it easy for tenants to pay, but it makes it easier for you to collect and track rent.
There are a few different rent collection methods, each with its pros and cons. Find out which method works best to make the most of your rental property.
In-Person or With a Dropbox
One of the traditional methods of collecting rent is to accept it in person or through a dropbox.
A dropbox solution is often what multifamily buildings and apartment complexes that allow rent checks use. Locked dropboxes are usually located in common areas of the building.
The downside to using a dropbox is that it's more of a hassle for property owners that don't live on the premises. You'll need to visit the building to collect the rent payments. This is also the downside of collecting rent in person.
This method also makes record-keeping more difficult. Of course, taxpayers need to report all rental income on their tax return, so failing to report payments correctly can result in IRS penalties.
Snail Mail
Some landlords still allow checks, cash, or money orders for rent through the mail. Traditional mail is another rent collection method property owners may still use, though it's quickly becoming a thing of the past.
The biggest downside to rent collecting this way is that mail can get lost, which is both a headache for landlords and tenants. Also, it can take longer to receive rent this way.
Collecting Payments Online
One of the most popular rent collection methods in 2021 is to accept payments online. There are 4.66 billion internet users in the world, and most people have a computer or phone that they can use to make payments online.
Rent collection software makes it a breeze for tenants to pay their monthly rent and for landlords to receive payments. Some property owners even accept and use PayPal, Venmo, or Zelle to collect payments.
Digitial collection only takes minutes, and almost everyone can learn how to pay rent this way.
Property Management Services
One of the best ways to collect rent is to outsource rent collection and use a property management company. Owners and investors can rely on a property management group to handle the property, ensure tenants pay on time, transfer payments directly to your account, and follow through on eviction assistance if necessary.
In short, property management services takes the stress out of running your rental properties.
Rent Collecting the Easy Way
So when it comes to rent collecting, what's the best method? Switching to digital payments and going through a property management company. Using this method, you can deal with tenant complaints, streamline the rent payment process, maximize your investment and protect your revenue.
We make collecting rent easy by taking the stress away from rental investors and property owners. Take a look at our office locations, or send us a message to get started today.
