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What’s the Best Way to Collect Rent from My White Bear Lake Tenants?

A Calendar with a Written Note to Pay Rent on the 1stOne of the most critical components of running a profitable rental home is collecting rent payments on time. But to obtain such payments, property owners first need to specify how that rent should be paid. There are numerous different methods to collect rent payments. But the greatest ones are those that fit your style of property management and your tenant’s wants and needs. To make a decision a little simpler, here’s what you need to know to pick the proper rent collection method for you.

Variables to Consider

Choosing the best rent collection method for you depends on numerous distinct factors. For instance, think about how many tenants you will need to collect from each month, how far away you are from your rental property, and how comfortable you are with incorporating technology tools to help you manage rent payments. Each of these criteria may help you narrow your options down substantially. You may also need to evaluate how often and in what way you want to interact with your tenants. While frequent positive communication is very beneficial for White Bear Lake property managers, showing up each month only to collect the rent could send your tenant the wrong message.

Convenient and Well-Documented

Another crucial thing to examine before selecting a rent collection method is if it fits two key criteria: convenience and the ability to document each transaction. Now more than ever, today’s renters are looking for tech-driven conveniences to make their lives simpler. A recent study found that 83% of consumers prefer to pay their bills online. But apart from convenience, it’s also critical to retain solid records of all rent payments and other transactions. Picking a payment method that can give both is essential for a well-managed rental property.

Payment Methods

There are two main categories of payment methods: traditional and electronic. Traditional payment methods reflect property management methods of the past and are just what you’d expect: cash, personal check, cashier’s check, or money order. While there are reasons to request a money order or cashier’s check – in payment of a security deposit, for example – accepting cash or personal checks isn’t ideal for most situations. Cash payments are hard to document, and personal checks come with many complications, from slow delivery to long wait times as checks clear the bank.

On the other hand, electronic payment methods have gotten increasingly diversified during the last few years. Property owners can choose from electronic payment options like ACH transfers and Square, but now money can easily be sent through payment apps like PayPal, Zelle, and Venmo (to name a few).

Most electronic payment methods will offer a record of each transaction, making documentation automatic. However, some tenants may be anxious about the safety of sending money online or prefer not to use payment apps for monthly bills. The largest downside for property owners is the fees; all electronic payment methods normally will have extra costs, so it’s necessary to research each one before making your final choice.

Automate and Communicate

With numerous payment methods, it is imperative to choose how you’d like to handle rent collection before it becomes a problem. The more automated the rent payment method you choose, the easier the entire process may be for you. At the same time, tenants may feel restricted if you accept only one payment method, especially if it relies on a technology they aren’t comfortable using. For this reason, it’s critical to communicate with your tenant and consider giving two or maybe three ways to pay the rent. This combination approach may be an acceptable compromise, as long as each method delivers the convenience and documentation you require.

Collecting rent payments doesn’t need to be complicated, but it can be a struggle to sort it all out on your own. Alternatively, consider the advantages of employing a property management company that offers convenient online rent payment options. If you’re ready to turn the day-to-day tasks of managing a rental property over to the professionals, give us a call at 844-365-7368.

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