There are 122.8 million households in the US, 36% of which are renters.
Whether you're a property owner or a property management company, you probably have several goals related to those renters.
First, you want good tenants who will care for your property. You also want renters who will pay their rent on time.
So, you want the task of rent collection to be easy for you and convenient for your tenants. This likely means you want to give them options, so they have several ways to get you their rent payment.
Read on for several options you might offer for rent collection.
Online Portal
46% of US residents have used an online system to make a payment. That statistic grows greatly when you consider the younger adult population.
Collecting rent through an online portal makes sense for several reasons. It's an electronic payment, so the money transfers without the need to collect checks and visit the bank.
An online portal can often create accounting records by the unit for the property owner or property manager.
It's also hugely convenient for the tenant to hop on and make a payment.
In-Person Location
If tenants don't want to use a digital option, they may prefer to pay with a personal check.
There is typically a rental office for rental property locations with many units in one place. It's simply a matter of coming into the location and dropping off payment.
If a tenant needs to pay using cash, the in-person drop-off allows for a receipt. Many in-person drop-off locations also provide a drop box for off-hour drop-offs.
Direct Deposit
Another convenient option for you and your tenants is a direct deposit or ACH payment. The rent payments are made from one bank to another without either of you having to get to a specific location or handle a physical check.
Your tenant can set up the ACH payment to transfer the day their rent is due, and it should go directly to your banking institution.
If you're okay with additional fees, you can also take a direct payment via credit card similarly.
Payment Apps
Similar to a direct deposit, there are several options through payment apps. If your tenant has an account through an app and you do as well, they can send the rent payment right through the app.
Both of you have your app connected to your bank accounts, and the money moves digitally.
Payment options might include PayPal, Square, Venmo, or Zelle, to name a few.
Via US Mail
Sometimes a rental unit's location is a distance from either the property owner or the property manager. If a tenant can't or won't choose a digital payment option, they might need to pay their rent via US mail.
This can be tricky for a tenant to ensure rent arrives on time. They have to plan to allow for mailing times.
Be clear in your lease agreement about your expectations for when payments should reach you and the consequences if they don't arrive on time.
Rent Collection Options for Your Tenants
Rent collection can be one of the challenges of owning or managing a rental property. The more convenient you make the options for paying the rent, the better chance your tenants get it delivered on time.
If you own rental property and are looking for a property manager to assist with managing the property, we can help. Contact us to learn more about our property management services.
