Does collecting rent every month feel like a burden? As a property owner, your income relies on collecting rent every month. Thankfully, there are several rent collection options available today that save you time and don't require you to bang down doors.
With so many rent collection services available to property managers, the challenge is simply choosing the right one. In this guide, we're going to break down the most popular options so that you can choose the right one for your Salt Lake City, Utah, investment property. Let's get started.
Traditional Rent Collection Methods
First, let's consider the more traditional methods for collecting rent. The most popular one is to accept a check from your tenants on the first of each month. Many landlords give tenants the option to mail the check or bring it to the management office.
This method is still effective, but you have to wait on the mail. Then, you have to wait a few more days for the check to clear.
Some landlords accept cash payments for rent. It may seem quick and convenient, but cash is hard to track. It's easy for a cash system to get very unorganized.
Lastly, money orders are still a viable rent collection option. For the receiver, they are basically the same as receiving a check. The main downside to accepting checks, cash, and money orders is that they can get lost.
It becomes a hassle to find or replace lost payments. However, today there are more convenient, safe, and tech-savvy ways to collect rent.
Electronic Rent Collection Methods
Today, there are several ways you can accept rent payments online. Electronic payments are fast, easy to track, and convenient for you and the tenants. Plus, most online rent payments can be automated, so it's unlikely that you'd have to track down late payments.
The first electronic payment method is a direct deposit straight from the tenant's bank account. This method is easy to set up with a quick authorization from their bank, and it's a secure way to exchange money.
Next, there are several online payment programs that property managers can use, such as PayPal or Venmo. These programs and quick and easy, but they require a few extra steps that direct payments don't. Plus, there is usually a fee for using them for business purposes.
Zelle and Apple Pay don't take extra fees; however, both you and your tenants need to own Apple products or have a bank that works with Zelle for them to be successful.
Lastly, online rent collection services like Rent Track and Rent Merchant can do all of the work for you. They make it easy for tenants to automate payments and then automatically send late payment notices. Some even perform background checks and tenant screenings.
Choosing the Right Rent Collection Method For Your Property
As you can see, there are several rent collection options available today. The right one for you depends on whether you want to interact with your tenants face to face or automate the entire process.
If you want professional help managing your Salt Lake City property, Wolfnest can help. Contact us today for more information.