As the owner of rental property, certainly one of the top (if not THE top) priorities is the rent collection from tenants. After all, in addition to building up equity, having a regular incoming cash flow is the reason most real estate investors obtain property.
So, what are the best rent collection techniques to use?
There are actually several – and given that we are in the age of technology, there are a number of methods that can make collecting rent easy and convenient, along with ensuring that it will arrive on time each and every month.
One way to collect a tenant’s rent is to go “old school” and obtain it in person from the tenant. While this may be time-consuming, going this route can allow you to see first-hand the condition of your property. In fact, by having the tenant know that you will be coming by the property on a regular basis, it can lessen the chance that the home or unit will be damaged by your renters.
You could also collect the monthly rent money by mail, or by setting up a drop box for payments. Many multi-unit apartment complexes use the drop box method, which can be convenient for the tenants and for the property owner alike.
If you are more internet savvy, there are a number of ways that you can set up the rent payments to be automatically collected. For example, by taking the rent via bank deposit, you’ll know exactly when the money will arrive in your account.
There are also several online rent payment services that you could use. These third-party providers will also allow you to receive your anticipated incoming cash flow on a set date. It is important to be aware, though, that most of these services will charge a fee.
Another way to take the burden of collecting rent off of your shoulders is to hire an experienced property manager to do so. In addition to taking care of the rent collection, a property management service will also typically take care of regular maintenance and repairs.
For more details on how a property manager can enhance your real estate rental business, just give is a call.