Running rental property means you have certain due diligence to accomplish daily, weekly, and monthly. One of the most obvious tasks you need to do as the owner of a property you rent out as well as a landlord is collecting rent.
It sounds simple and not many investors pay much attention to it. Instead, many of investors pay attention more on how to find a tenant.
Well, it is also important as the first step in running your rental property business. However, you still need a work to do after finding a tenant which is rent collection.
Rent collecting methods in running your rental property business
Rent collection is supposed to be easy thing to do. However, it is not only for you as a payoff for all your hard work and investment but also for your tenants. When you make it easy for them then you give them a favor in not complicating anything.
If you make rent collecting process too complicated, it will be just a nuisance both for you and your tenants.
It is something you need to avoid since it is monthly task you need to accomplish. So that, pay your attentions to some alternatives of rent collecting methods you need to know that I’d like to tell you on a second.
The first method is of course none other than cash. Collecting cash sound simple but it also can cause potential hassle.
It is not efficient to let your tenants send cash in the mail. The solution is to drive to your rental property every month for rent collecting. Of course, sparing time to meet up with your tenants and retrieve cash from them is not the best way.
To minimize potential problems, it is highly advised to set time and date every month. So, there is no risk of conflict to emerge.
Next rent collecting method is by check. It is quite popular and many landlords and tenants still use this method. However, it has also downside such as lagging issue regarding to time a check is sent to the time it is received.
There is also potential loss of items in the mail. There is common conflict such as when tenants say they have sent the check on the first but the landlords haven’t received until the fourth.
This problem often leads to bigger conflict than it is necessary.
Next method is online. This is getting popular and preferred by most rental property business. With the help of advanced technology, online payment is more effective and efficient that it is thought before.
There are various program and website online offering payment service online. It is easy and safe. There is also advantage of this method such as clear time and date of the transaction made.
The problem is also minimized since there is no lagging issue in the mail. You also don’t have to spend extra time driving to your rental property to collect cash.
Make sure that you choose trusted and reputable sites to set up online payment from your tenants if you prefer this method.